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TOOLS · trade-logistics

Incoterms Selector

Inputs about mode, risk appetite, and who pays what → recommended Incoterm with reasoning.

What this tool does

This tool guides you through a structured decision process to identify which Incoterms 2020 rule fits your shipment. You answer questions about transport mode, customs responsibilities, freight payment, and risk tolerance. The tool then recommends one or more rules that match your inputs, along with a plain-language explanation of why each rule applies.

Incoterms define the division of costs, risks, and tasks between buyer and seller. Selecting the wrong rule can leave you paying for insurance you assumed the counterparty arranged, or bearing risk during a leg of transit you thought was covered. This tool reduces guesswork by mapping your operational answers directly to the ICC framework.

Who should use it

Export and import coordinators, freight forwarders quoting landed costs, sales teams drafting proforma invoices, and procurement managers negotiating purchase orders all benefit from a quick sanity check before locking in contract terms. Use it when you are new to a trade lane, switching transport modes, or renegotiating terms with a counterparty who wants different risk allocation.

Inputs

  • Transport mode: Select sea only, inland waterway, air, road, rail, or multimodal. Seven of the eleven rules work for any mode, but FAS, FOB, CFR, and CIF apply exclusively to sea and inland waterway transport.
  • Who clears export customs: Indicate whether the seller handles export formalities or the buyer arranges them. EXW is the only rule where the buyer is responsible for export clearance.
  • Who clears import customs: Indicate whether the seller or buyer handles import formalities. DDP places full import clearance on the seller, while most other rules leave it to the buyer.
  • Who pays main carriage freight: Choose seller or buyer. This determines whether you land in a "C" rule (seller pays freight to a named destination) or an "F" rule (buyer arranges and pays main carriage).
  • Desired risk transfer point: Select from options such as "at seller's premises," "loaded on vessel," "delivered to destination," or "delivered and unloaded." This input steers the recommendation toward rules that align risk transfer with your operational handoff.
  • Insurance requirement: State whether you need the seller to arrange cargo insurance. CIF and CIP require seller-procured insurance (CIP at a higher coverage level under Incoterms 2020), while other rules leave insurance optional or buyer-arranged.

Assumptions

The tool assumes you are working with a commercial sale of goods governed by Incoterms 2020. It does not account for older versions (Incoterms 2010 or earlier), which differ in insurance minimums and rule definitions. The tool also assumes standard containerized or break-bulk cargo. Specialized commodities such as bulk liquids, hazardous materials, or oversized project cargo may require contract-specific clauses beyond any Incoterm.

The recommendations presume that both parties can legally perform export and import clearance in their respective jurisdictions. In cases where the buyer cannot act as exporter of record, or the seller cannot obtain an import license, certain rules become impractical regardless of cost or risk preferences.

Limitations

This tool does not generate contract language. Incoterms must be incorporated into your sales contract with explicit reference to "Incoterms 2020" and a named place or port. The recommendation here is a starting point for negotiation, not a binding term.

The tool cannot evaluate country-specific regulations, sanctions, or documentary requirements that might make a recommended rule operationally difficult. For example, DDP into a country with complex value-added tax rules may expose the seller to unexpected fiscal obligations. You must verify feasibility with your customs broker or legal counsel before finalizing terms.

How results are calculated

The selector applies a decision-tree model based on ICC guidance. First, it filters by transport mode. If you select sea or inland waterway, all eleven rules remain available. If you select any other mode, the four sea-only rules (FAS, FOB, CFR, CIF) are excluded.

Next, the tool filters by export and import clearance responsibility. EXW is excluded if the seller must clear export. DDP is excluded if the buyer must clear import. DAP and DPU remain in play when the seller delivers but the buyer handles import formalities.

The tool then applies the freight-payment filter. If the seller pays main carriage, it narrows to CFR, CIF, CPT, CIP, DAP, DPU, or DDP. If the buyer pays, it narrows to EXW, FCA, FAS, or FOB.

Finally, the risk-transfer and insurance inputs rank the surviving rules. If you want risk to transfer at loading, FOB or FCA score highest. If you want risk to transfer at delivery, DAP, DPU, or DDP score highest. If seller-arranged insurance is required, CIF or CIP is flagged.

The output displays the top-ranked rule, secondary alternatives if inputs are ambiguous, and a sentence explaining the match. No machine-learning model is involved. The logic mirrors the flowcharts published in the ICC Incoterms 2020 explanatory notes.

Sources and data freshness

Last data refresh: 2026-05-05.

Disclaimer

This tool provides indicative guidance based on the Incoterms 2020 framework. It is not legal advice and does not replace the official ICC Incoterms 2020 publication, which contains the authoritative text of each rule. Before incorporating any Incoterm into a contract, verify suitability with your freight forwarder, customs broker, or legal counsel. Reevol assumes no liability for decisions made using this tool.