Published by the International Chamber of Commerce (ICC), Incoterms® 2020 is the latest series of predefined trading rules used in the domestic and international sale of goods. The following chart illustrates these terms and associated tasks, costs and responsibilities.
Please see Incoterms® Explained for an introductory overview and why they’re crucial to international trade.
The seller makes goods available at their premises or another named place. The buyer assumes full responsibility for all costs and risks from pickup to delivery, including loading, export clearance, and transport.
The seller delivers goods cleared for export to the carrier or another party nominated by the buyer at an agreed place. Risk transfers once the goods are handed over. In Incoterms® 2020, FCA allows for a bill of lading with on-board notation if both parties agree.
The seller delivers goods alongside the vessel at the named port of shipment. The buyer assumes responsibility once the goods are next to the ship, including loading, freight, and insurance.
The seller delivers goods on board the vessel nominated by the buyer at the named port of shipment. Risk transfers once the goods are on board.
The seller pays the costs and freight to bring the goods to the port of destination, but risk transfers to the buyer once goods are on board the vessel.
The seller has the same responsibilities as under CFR but must also provide marine insurance to cover the buyer’s risk during transit.
The seller pays for carriage to the named destination but risk transfers to the buyer once goods are handed over to the first carrier.
Similar to CPT, but the seller also provides insurance coverage up to the named destination. Under Incoterms® 2020, CIP now requires higher insurance cover (Clause A or equivalent) unless otherwise agreed.
Formerly known as DAT (Delivered at Terminal), DPU requires the seller to deliver goods unloaded at the named place of destination. The seller is responsible for both transport and unloading.
The seller bears all costs and risks involved in delivering goods to the named place of destination, ready for unloading by the buyer.
The seller delivers goods to the buyer, cleared for import and ready for unloading at the named place of destination. The seller bears all costs and risks, including duties, taxes, and customs clearance in both countries.
Download and print your copy of our free Incoterms® guide. Features chart and glossary.
