INCOTERMS® 2020
Incoterms® 2020, in plain language.
Eleven rules that divide the tasks, costs and risks of delivering goods between seller and buyer. Pick a rule to see exactly where responsibility changes hands.
WHAT INCOTERMS DO
— Say who arranges and pays for each stage of transport
— Set the point where risk passes from seller to buyer
— Say who handles export and import clearance
— Say whether the seller must insure the goods (CIF and CIP only)
WHAT THEY DO NOT DO
— Transfer ownership of the goods
— Set the price, payment terms or currency
— Replace the sales contract or a letter of credit
— Cover breaches, liability limits or disputes
ANY MODE OF TRANSPORT
Seven rules that work for sea, air, road, rail or multimodal moves.
SEA AND INLAND WATERWAY
Four rules for goods loaded on board a vessel. For containers handed over at a terminal, FCA, CPT or CIP usually fit better.
Educational summary of the Incoterms® 2020 rules, not legal advice. Incoterms® is a trademark of the International Chamber of Commerce. Use the official ICC text and take professional advice when drafting contracts.