Containers and shipping
The Incoterms® Rules for an Indian importer
Independent site, not a government service. General information, not customs advice.
A delivery term on an invoice says who pays for what. Choose yours to see what you would still add to reach a customs value in India.
Does your invoice price cover freight and insurance?
Starting customs value
₹5,45,000
| Freight added | ₹40,000 |
| Insurance added | ₹5,000 |
| What to look at: Add the sea freight and the insurance. | |
Our summary of how each rule splits costs, for customs value only. Check your contract.
The Incoterms® Rules are delivery terms developed by experts brought together by the International Chamber of Commerce. HM Revenue and Customs, in its valuation guidance updated on 14 April 2026, says they clarify the tasks, costs and risks in delivering goods from seller to buyer, and that UNCITRAL recognises them as the global standard for interpreting common trade terms. The US International Trade Administration counts eleven rules in the 2020 edition, seven for any mode of transport and four for sea and inland waterways. It also lists what they do not settle: the other conditions of sale, the goods and the price, how and when payment is made, the passing of title, and disputes over liability. For an Indian importer they matter for one extra reason. Customs value under rule 10 runs to the place of importation, so the chosen rule points to the costs that may already sit in your invoice. This page rests on those two summaries, in our own words. We did not read the ICC text, which is copyright.
Tariff and rules read by Radif Partners · Editorial policy · Method and sources
The eleven rules, from the HMRC summary
| Rule | Transport | Seller delivers | Seller pays carriage to destination? | Seller buys insurance? |
|---|---|---|---|---|
| EXW | Any | At its premises or a named place, not loaded and not cleared for export | No | Not stated |
| FCA | Any | To the carrier or person the buyer nominates, at a named place | No | Not stated |
| CPT | Any | To a carrier the seller nominates | Yes | Not stated |
| CIP | Any | As CPT | Yes | Yes, minimum cover |
| DAP | Any | On the arriving transport, ready for unloading, at the named place | Bears all risks to that place | Not stated |
| DPU | Any | Unloaded at the named place | Bears all risks to that place, unloading included | Not stated |
| DDP | Any | Cleared for import, on the arriving transport, ready for unloading | Bears all costs and risks to that place | Not stated |
| FAS | Sea | Alongside the ship at the named port | No: the buyer bears all costs from then on | Not stated |
| FOB | Sea | On board at the named port | No: the buyer bears all costs from then on | Not stated |
| CFR | Sea | On board | Yes, to the named port | Not stated |
| CIF | Sea | On board | Yes, to the named port | Yes, minimum cover |
From delivery term to customs value
Rule 10(2) includes transport and insurance to the place of importation in the customs value. So on a FOB invoice you add both, and on a CIF invoice you generally add nothing, as long as the price really covers them. On a DDP invoice, ask the seller to split out the Indian duty and tax. The tool above works this out; details are in customs value.
HMRC adds a warning that belongs to UK valuation: the use of a rule does not restrict the valuation method. We read no Indian text on that point, so in India rule 10 and the facts of your purchase decide, not the three letters on the invoice.
Using the name correctly
The ICC trademark and copyright policy asks for the mark to be used with the registered sign and as an adjective, and notes that ICC owns the copyright. We follow that policy. Nothing on this site is approved by ICC. The HMRC guidance is published under the Open Government Licence, and the US trade administration page is a US government page. For more detail, see the 2020 edition and the pages on FOB, CIF, EXW, DAP and DDP.