Incoterms 2020
The Incoterms 2020 are the latest version of the international commercial terms published by the International Chamber of Commerce (ICC), providing a common set of rules to clarify responsibilities of sellers and buyers in international trade. These terms define the responsibilities and risks of both the seller and buyer during the transportation of goods in international trade, ensuring clarity and reducing disputes.
Definition:
The seller delivers when it places the goods at the disposal of the buyer at the seller’s premises or another named place (factory, warehouse, etc.). The buyer bears all costs and risks involved in taking the goods from the seller’s premises to the desired destination.
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Definition:
The seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place. The risk passes to the buyer upon delivery.
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Definition:
The seller pays for carriage to the named place of destination. The risk transfers to the buyer when the goods are handed to the carrier.
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Definition:
The seller pays for carriage and insurance to the named place of destination. Risk transfers to the buyer upon delivery to the carrier.
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Definition:
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.
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Definition:
The seller delivers the goods, once unloaded, at the named place of destination. Formerly known as DAT (Delivered at Terminal).
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Definition:
The seller delivers the goods to the buyer, cleared for import, and all applicable duties paid at the named place of destination.
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Definition:
The seller delivers when the goods are placed alongside the vessel at the named port of shipment.
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Definition:
The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment.
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Definition:
The seller pays the costs and freight to bring the goods to the port of destination. Risk transfers to the buyer once the goods are loaded on the vessel.
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Definition:
Similar to CFR, but the seller also provides insurance for the goods during the sea voyage.
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