Incoterms 2020

Incoterms 2020 defines international commercial terms that outline the responsibilities of buyers and sellers in global trade. These terms include EXW (Ex Works), FCA (Free Carrier), CPT (Carriage Paid To), CIP (Carriage and Insurance Paid To), DAP (Delivered at Place), DPU (Delivered at Place Unloaded), DDP (Delivered Duty Paid), FAS (Free Alongside Ship), FOB (Free on Board), CFR (Cost and Freight), and CIF (Cost, Insurance and Freight).

EXW obligates the seller to make goods available at their premises. FCA requires the seller to deliver goods to a designated carrier. CPT implies the seller pays for transport to a specified destination. CIP includes transport and insurance coverage paid by the seller to the destination.

DAP mandates the seller to deliver goods to the buyer’s specified place. DPU involves unloading goods at the agreed location. DDP means the seller handles all risks and costs up to the destination, including import duties.

FAS obliges the seller to place goods alongside the ship. FOB requires the seller to load goods onto the vessel named by the buyer. CFR means the seller pays transport costs to the destination port. CIF adds insurance to the seller’s responsibilities under CFR.

Incoterms 2020 specifies each party’s obligations, including documentation, transport, and risk management. The updates introduce clearer language and additional guidance, reflecting contemporary trade practices.