Trade Terms Guide
Incoterms 2020 — Complete Guide
All 11 official Incoterms 2020 rules explained for Malaysian importers and exporters — click any card to see full responsibilities.
Malaysia note: Since July 2024, IRBM made Incoterms an optional field in Malaysia’s e-Invoice / MyInvois system. Even so, stating the correct Incoterm on your commercial invoice and shipping documents remains essential for customs clearance and cost/risk clarity.
Rules for any mode of transport
Use for air, road, rail, sea, or multimodal — suitable for containerized cargo.
Rules for sea and inland waterway
Reserved for bulk or break-bulk cargo loaded directly onto the vessel.
Quick reference table
Risk transfer point and who handles export/import clearance for all 11 terms.
| Term | Mode | Risk transfers to buyer at | Export | Import |
|---|---|---|---|---|
| EXW | Any | Seller’s premises | Buyer | Buyer |
| FCA | Any | Named place, on carrier | Seller | Buyer |
| CPT | Any | Handover to first carrier | Seller | Buyer |
| CIP | Any | Handover to first carrier | Seller | Buyer |
| DAP | Any | Named destination | Seller | Buyer |
| DPU | Any | After unloading | Seller | Buyer |
| DDP | Any | Named destination | Seller | Seller |
| FAS | Sea | Alongside vessel | Seller | Buyer |
| FOB | Sea | On board vessel | Seller | Buyer |
| CFR | Sea | On board vessel | Seller | Buyer |
| CIF | Sea | On board vessel | Seller | Buyer |
Not sure which Incoterm fits your shipment?
PEA Express Agencies helps Malaysian importers and exporters choose the right terms and handles every step from there.
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