Incoterms 2020 - who pays and who carries the risk
Eleven rules on a single timeline. Pick one and see who bears the cost of every stage - from packing at the Chinese factory to unloading at your warehouse, and the exact moment the risk becomes yours.
Choose a rule
A dot marks the rules most often used when importing from China.
FOB
sea and inland waterway onlyFOB - Free On Board
The seller bears cost and risk until the goods are on board, including export clearance.
- Stages paid by the seller
- 6
- Stages paid by you
- 5
- Risk transfer
- When the goods are loaded on board the vessel at the port of loading.
Who pays at each stage
- 01Packing and preparing the goodsSeller
- 02Loading at the seller's premisesSeller
- 03Transport in the export countrySeller
- 04Export clearanceSeller
- 05Terminal charges at the port of loadingSeller
- 06Loading onto the main carriageSeller
Risk passes to the buyer here - from this point on, damage to or loss of the goods is on you.
- 07Main carriageBuyer (you)
- 08Cargo insuranceOptional
- 09Terminal charges at the destination portBuyer (you)
- 10Import clearance, duty and VATBuyer (you)
- 11Transport to the destinationBuyer (you)
- 12Unloading at the consigneeBuyer (you)
From a Polish importer's point of view
The most common and usually the safest basis for importing from China. The seller handles everything up to loading, including export clearance, and you control the freight, which is what lets you compare offers at all.
Incoterms 2020 are rules of the International Chamber of Commerce. They split cost, risk and obligations between seller and buyer - they do not govern transfer of title to the goods, payment terms or the law applicable to the contract. The table above is indicative; your contract is what binds.