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Know your Incoterms ® 2020

Help ensure a smooth export transaction and avoid potentially costly mistakes. Use internationally recognised Incoterms® to clarify the tasks, costs and risks for buyers and sellers in these transactions. In order to assist further, please Click here to download video

The Incoterms® are a set of 11 individual rules issued by the International Chamber of Commerce (ICC) which define the responsibilities of sellers and buyers for the sale of goods in international transactions. Of primary importance is that each Incoterms rule clarifies the tasks, costs and risks to be borne by buyers and sellers in these transactions.

The seven Incoterms® 2020 rules for any mode(s) of transport are:

  • EXW – Ex Works (insert place of delivery)
  • FCA  – Free Carrier (Insert named place of delivery)
  • CPT  – Carriage Paid to (insert place of destination)
  • CIP –  Carriage and Insurance Paid To (insert place of destination)
  • DAP – Delivered at Place (insert named place of destination)
  • DPU – Delivered at Place Unloaded (insert of place of destination)
  • DDP – Delivered Duty Paid (Insert place of destination).

Note: the DPU Incoterms replaces the old DAT, with additional requirement for the seller to unload the goods from the arriving means of transport.

The four Incoterms® 2020 rules for Sea and Inland Waterway Transport are:

  • FAS – Free Alongside Ship (insert name of port of loading)
  • FOB – Free on Board (insert named port of loading)
  • CFR – Cost and Freight (insert named port of destination)
  • CIF –  Cost Insurance and Freight (insert named port of destination)