Incoterms 2020 Guide
Understanding International Commercial Terms is essential for any import or export operation. This guide breaks down all 11 standardized rules published by the International Chamber of Commerce (ICC).
Rules for Any Mode of Transport
Ex Works
The seller makes the goods available at their premises. The buyer is responsible for all transportation costs, risks, and customs clearance from that point onward.
Free Carrier
The seller delivers the goods, cleared for export, to a carrier named by the buyer at a specified place. Risk transfers to the buyer upon delivery.
Carriage Paid To
The seller pays for the carriage of the goods up to the named place of destination. Risk transfers when goods are handed over to the first carrier.
Carriage and Insurance Paid To
Similar to CPT, but the seller is also required to obtain minimum insurance cover against the buyer's risk of loss of or damage to the goods during carriage.
Delivered at Place
The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination.
Delivered at Place Unloaded
The seller delivers when the goods, once unloaded, are placed at the disposal of the buyer at a named terminal. The seller bears all risks involved in bringing the goods to and unloading them at the terminal.
Delivered Duty Paid
The seller bears all costs and risks involved in bringing the goods to the place of destination, including import duties and taxes.
Rules for Sea and Inland Waterway Transport
Free Alongside Ship
The seller delivers when the goods are placed alongside the vessel nominated by the buyer at the named port of shipment.
Free On Board
The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment. Risk transfers when goods are on board the vessel.
Cost and Freight
The seller must pay the costs and freight necessary to bring the goods to the named port of destination, but the risk transfers to the buyer when goods are on board the vessel.
Cost, Insurance and Freight
Similar to CFR, but the seller also contracts for insurance cover against the buyer's risk of loss of or damage to the goods during the carriage.