Incoterms 2020

The Incoterms(r) rules have become an essential part of the daily language of trade. They have been incorporated in contracts for the sale of goods worldwide and provide rules and guidance to importers, exporters, lawyers, transporters, insurers and students of international trade.

This introduction explains what the Incoterms® 2020 rules do and do NOT do and how they are best incorporated.

It sets out the important fundamentals of the Incoterms® rules: the basic roles and responsibilities of seller and buyer, delivery, risk, and the relationship between the Incoterms® rules and the contracts surrounding a typical contract of sale for export/import and also, where appropriate, for domestic sales.

The text explains how best to choose the right Incoterms® rule for the particular sale contract; and sets out the central changes between Incoterms® 2010 and Incoterms® 2020.

RULES FOR ANY MODE OR MODES OF TRANSPORT

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

RULES FOR SEA AND INLAND WATERWAY TRANSPORT

• FAS | Free Alongside Ship
• FOB | Free On Board
• CFR | Cost and Freight
• CIF | Cost Insurance and Freight

[Source: https://iccwbo.org/publication/incoterms-2020-introduction/]