Incoterms® 2020, in short
The Incoterms rules define who arranges what, who pays for what, and where risk passes from seller to buyer. These are the 11 rules of the 2020 edition.
The eleven rules
The rules have become part of the daily language of trade, incorporated into contracts for the sale of goods worldwide. Below are short descriptions of each.
Rules For Any Mode Or Modes Of Transport
Ex Works
Seller delivers when it places the goods at the disposal of the buyer at the seller's premises or at another named place. The seller does not need to load the goods on any collecting vehicle or clear them for export.
Free Carrier
Seller delivers the goods to the carrier or another person nominated by the buyer at the seller's premises or another named place. The parties should specify as clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.
Carriage Paid To
Seller delivers the goods to the carrier or another person nominated by the seller at an agreed place and the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination.
Carriage and Insurance Paid To
Seller delivers the goods to the carrier or another person nominated by the seller at an agreed place and the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination.
Delivered at Place
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. the seller bears all risks involved in bringing the goods to the named place.
Delivered at Place Unloaded
Seller delivers when the goods, once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination. the seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.
Delivered Duty Paid
Seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading at the named place of destination. the seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.
Rules For Sea And Inland Waterway Transport
Free Alongside Ship
Seller delivers when the goods are placed alongside the vessel nominated by the buyer at the named port of shipment. The risk of loss or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from that moment onwards.
Free on Board
Seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment on.
Cost and Freight
Seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. the seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
Cost, Insurance, and Freight Seller deli
Cost, Insurance, and Freight Seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
“Incoterms” is a trademark of the International Chamber of Commerce. These summaries should be read in the context of the full official text, which is available from the ICC Business Bookstore.
