Incoterms® is a set of 11 rules established every 10 years by the International Chamber of Commerce (ICC). Each Incoterm details buyers' and sellers' duties and obligations in the international sale of goods.
Most importantly, each rule simplifies the tasks, costs, and risks the buyer or seller bears in each transaction.
The Incoterms® 2020 are grouped into two categories: Seven for any mode(s) of transport and four specifically for Sea or Land or Inland Waterways.
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INCOTERMS® 2020 Reference Chart |
ANY MODE(S) OF TRANSPORT |
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EXW |
FCA |
CPT |
CIP |
DAP |
DDP |
DPU |
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EX Works |
Free Carrier |
Carriage Paid To |
Carriage & Insurance Paid To |
Delivered at Place |
Delivered Duty Paid |
Delivered at Place Unloaded |
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Services |
Who Pays |
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Export Packing |
SELLER |
SELLER |
SELLER |
SELLER |
SELLER |
SELLER |
SELLER |
|
|
Marking & Labeling |
SELLER |
SELLER |
SELLER |
SELLER |
SELLER |
SELLER |
SELLER |
|
|
Block and Brace |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
|
|
Export Clearance (License, EEI/AES) |
BUYER |
SELLER |
SELLER |
SELLER |
SELLER |
SELLER |
SELLER |
|
|
Freight Forwarder Documentation Fees |
BUYER |
BUYER |
SELLER |
SELLER |
SELLER |
SELLER |
SELLER |
|
|
Inland Freight to Main Carrier |
BUYER |
2 |
SELLER |
SELLER |
SELLER |
SELLER |
SELLER |
|
|
Origin Terminal Charges |
BUYER |
BUYER |
SELLER |
SELLER |
SELLER |
SELLER |
SELLER |
|
|
Vessel Loading Charges |
BUYER |
BUYER |
SELLER |
SELLER |
SELLER |
SELLER |
SELLER |
|
|
Ocean Freight / Air Freight |
BUYER |
BUYER |
SELLER |
SELLER |
SELLER |
SELLER |
SELLER |
|
|
Nominate Export Forwarder |
BUYER |
BUYER |
SELLER |
SELLER |
SELLER |
SELLER |
SELLER |
|
|
Marine Insurance |
3 |
3 |
3 |
SELLER |
3 |
3 |
3 |
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Unload Main Carrier Charges |
BUYER |
BUYER |
4 |
4 |
SELLER |
SELLER |
SELLER |
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|
Destination Terminal Charges |
BUYER |
BUYER |
4 |
4 |
SELLER |
SELLER |
SELLER |
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Nominate On-Carrier |
BUYER |
BUYER |
5 |
5 |
5 |
SELLER |
5 |
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Security Information Requirements |
BUYER |
BUYER |
BUYER |
BUYER |
BUYER |
BUYER |
BUYER |
|
|
Customs Broker Clearance Fees |
BUYER |
BUYER |
BUYER |
BUYER |
BUYER |
SELLER |
BUYER |
|
|
Duty, Customs Fees,Taxes |
BUYER |
BUYER |
BUYER |
BUYER |
BUYER |
SELLER |
BUYER |
|
|
Delivery to Buyer Destination |
BUYER |
BUYER |
BUYER |
BUYER |
BUYER |
SELLER |
SELLER |
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Delivering Carrier Unloading |
BUYER |
BUYER |
BUYER |
BUYER |
BUYER |
BUYER |
SELLER |
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1 – Incoterms® 2020 do not deal with the parties’ obligations for stowage within a container and therefore, where relevant, the parties should deal with this in the sales contract.
2 – FCA Seller’s Facility – Buyer pays inland freight; other FCA qualifiers. Seller arranges and loads pre-carriage carrier and pays inland freight to the “F” delivery place.
3 – Incoterms® 2020 does not obligate the buyer nor must the seller to insure the goods, therefore this issue be addressed elsewhere in the sales contract.
4 – Charges paid by Buyer or Seller depending on contract of carriage.
5 – Charges paid by Seller if through Bill of Lading or door-to-door rate to Buyer’s destination