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Incoterms 2020

The Incoterms® rules define important responsibilities of buyers and sellers for the delivery of goods under sales contracts. They are the authoritative rules for determining how costs and risks are allocated to the parties. Incoterms rules are regularly incorporated into contracts for the sale of goods worldwide and have become part of the daily language of trade.

Incoterms® 2020 contains the ICC rules for use of the 11 Incoterms® trade terms. It takes into account the latest developments in commercial practice, and updates the rules to make them more accessible and easier to use.

Incoterms® is a registered trademark of the International Chamber of Commerce (ICC).

The two main categories of Incoterms® 2020 are organised by modes of transport. The aim is to clearly stipulate the obligations of buyers and sellers.

Group 1. Incoterms® that apply to any mode of transport are:

  • EXW Ex Works
  • FCA Free Carrier
  • CPT Carriage Paid To
  • CIP Carriage and Insurance Paid To
  • DAP Delivered at Place
  • DPU (new) Delivered at Place Unloaded
  • DDP Delivered Duty Paid

Group 2. Incoterms® that apply to sea and inland waterway transport only:

  • FAS Free Alongside Ship
  • FOB Free on Board
  • CFR Cost and Freight
  • CIF Cost, Insurance, and Freight