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Glossary · Trade terms
What is Incoterms 2020?
The International Chamber of Commerce's 11 standard trade rules that set who pays for and bears the risk of each step between seller and buyer.
Incoterms are published by the International Chamber of Commerce (ICC). The 2020 edition, in use since January 1, 2020, has 11 rules: EXW, FCA, CPT, CIP, DAP, DPU and DDP for any mode of transport, and FAS, FOB, CFR and CIF for sea and inland waterway transport only.
Each rule sets where delivery happens, when risk passes from seller to buyer, and who pays for export clearance, main freight, insurance and import clearance. Incoterms do not cover transfer of ownership, payment terms or what happens if goods are defective; those belong in the sales contract.
Always write the rule, the named place and the edition, such as “FOB Shenzhen Incoterms 2020”. Older editions are still used in some contracts, so naming the edition removes any doubt.
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