In practice: there are 11 rules: EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAP, DPU and DDP. Each says who books and pays the main carriage, where risk passes and who handles export and import clearance. They do not decide ownership of the goods or payment terms. FAS, FOB, CFR and CIF are meant for sea and inland waterway transport; for containers the ICC points to FCA, CPT or CIP. The full rules are published by the ICC.

Example: under FOB Shanghai the buyer chooses the forwarder and pays ocean freight; under CIF Jebel Ali the seller pays freight and minimum insurance, but the buyer still pays destination charges. Try our Incoterms selector.