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Incoterms 2020

Incoterms 2020 is a set of international trade rules published by the International Chamber of Commerce (ICC), effective 1 January 2020. They define the responsibilities of buyers and sellers for the delivery of goods.

EXW — Ex Works

The seller makes the goods available at their premises; the buyer assumes all transport costs and risk from that point onward.

FCA — Free Carrier

For any transport mode. The seller delivers the goods to the first carrier; risk transfers there and the buyer covers onward transport.

FOB — Free On Board

The seller pays loading and places the goods aboard the vessel; risk passes to the buyer once the goods are on board.

CFR — Cost and Freight

The seller pays carriage to the port of destination; the buyer covers insurance and transport from the destination port.

CPT — Carriage Paid To

For any transport mode. The seller pays freight to the named destination; the buyer is responsible for insurance.

CIF — Cost, Insurance and Freight

The selling price includes the cost of the goods, freight and marine insurance to the destination port.

CIP — Carriage and Insurance Paid To

For any transport mode. The seller covers both freight and insurance to the named destination.

DAP — Delivered At Place

The seller bears all risk in delivering the goods to the named place of destination, ready for unloading.

DDP — Delivered Duty Paid

The seller covers all transport costs, risk and import duties, delivering the goods cleared for import.

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