Trade & Incoterms
Incoterms
International Commercial Terms published by the ICC. Incoterms define who pays for transport, insurance, and customs, and when risk transfers from seller to buyer in international trade. The current rules are Incoterms 2020.
In depth
Incoterms are not laws: they are contractual shorthand agreed between buyer and seller. They clarify who arranges carriage, who pays which leg of the journey, where risk transfers, and who handles export/import formalities. Always pair the three-letter rule (e.g. FOB) with a named place and the correct transport mode.
Key points
- Incoterms 2020 is the current ICC ruleset: specify the year in contracts
- They do not cover payment terms, quality, or title to goods
- FOB is for sea/inland waterway; FCA is often better for containerised cargo
- DDP places maximum obligation on the seller including import duties