Incoterms 2020
This page is designed to provide a basic level of understanding of Incoterms ® 2020 Rules published by the International Chamber of Commerce (ICC).
What Are Incoterms?
Incoterms (International Commercial Terms) are standardized trade terms published by the International Chamber of Commerce (ICC) that define the responsibilities, costs, and risks between buyers and sellers in international trade. The current version is Incoterms 2020, which includes 11 rules organized into two categories: rules for any mode of transport (EXW, FCA, CPT, CIP, DPU, DAP, DDP) and rules for sea and inland waterway transport (FAS, FOB, CFR, CIF). Each Incoterm specifies who pays for transportation, insurance, customs clearance, and where risk transfers from seller to buyer.
How to Choose the Right Incoterm
Determine transportation mode
Identify whether your shipment uses sea transport, air freight, road, rail, or multimodal transport. This determines which Incoterms are applicable.
Assess risk and cost preferences
Decide who should bear transportation costs, insurance, and customs clearance. Consider your risk tolerance and who has better control over logistics.
Review seller and buyer responsibilities
Understand what each party is responsible for: loading, transportation, insurance, customs clearance, and delivery. Use our interactive Incoterms tool to compare responsibilities.
Consider delivery point
Determine where you want delivery to occur: seller's premises (EXW), port of loading (FOB), port of destination (CIF), or buyer's location (DDP).
Document and agree on Incoterm
Include the selected Incoterm in your sales contract, commercial invoice, and shipping documents. Ensure both parties understand their responsibilities clearly.
Why Choose Us?
Interactive Incoterms 2020 tool
Visual, interactive tool to understand how each Incoterm works. See seller and buyer responsibilities, cost allocation, and risk transfer points dynamically update as you select different Incoterms. The timeline visualization shows exactly where responsibility transfers occur in the shipping process.
Get StartedComplete Incoterms 2020 reference
Comprehensive guide to all 11 Incoterms 2020 rules with detailed explanations of responsibilities, costs, and risk transfer points. Each Incoterm includes seller and buyer responsibilities for shipping, insurance, and duties, helping you make informed decisions for your international trade transactions.
Get StartedCost responsibility breakdown
Clear visualization of who pays for shipping, insurance, and duties under each Incoterm. The cost breakdown bars show exactly which costs are the seller's responsibility and which are the buyer's, helping you understand total landed cost and plan your budget accordingly.
Get StartedPopular Incoterms
Most commonly used Incoterms in international shipping.
Incoterms Categories
Incoterms organized by transportation mode and responsibility.
Incoterms Comparison
Compare Incoterms to choose the right one for your shipment.
Download Incoterms Guide PDF
Freight orchestration for fast-growing trade teams.
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