Incoterms are the standard three-letter rules, published by the International Chamber of Commerce, that define who is responsible for cost, risk and tasks at each point of a shipment. Choosing the right one prevents disputes and surprise costs.
The 2020 terms
There are eleven Incoterms in the 2020 set. Four apply to any transport mode; seven are sea/inland-waterway specific.
- Any mode: EXW, FCA, CPT, CIP, DAP, DPU, DDP
- Sea/waterway: FAS, FOB, CFR, CIF
- DPU replaced the former DAT term in the 2020 revision
How to choose
Pick the term based on how much of the journey — and its risk and cost — each side is able to control. EXW puts almost everything on the buyer; DDP puts almost everything on the seller. Most deals sit between the two.
The common trap
The point where risk transfers is not always the point where cost transfers. Read both for your chosen term, and align it with your landed-cost model before you sign.
Imponexpo is in pre-launch — no live orders, payments or escrow are available yet. This resource is a preview to help you prepare.