A structured reference to all 11 Incoterms® 2020 — who arranges transport, who pays for freight and insurance, and where risk transfers from seller to buyer.
Incoterms® (International Commercial Terms) are internationally recognised trade rules published by the International Chamber of Commerce (ICC). They define how responsibilities, costs and risks are divided between the seller and buyer in an international sale — including who arranges and pays for transport and insurance, who handles export and import clearance, and the point at which risk transfers from seller to buyer. Incoterms do not transfer ownership of the goods or set the price; they are agreed as part of the sales contract to avoid misunderstandings during shipping.
The seller makes the goods available at its factory, warehouse or another named location. The buyer handles loading, export clearance, transportation, insurance and import clearance. Risk transfers when the goods are made available for collection.
The seller clears the goods for export and delivers them to the carrier or another party appointed by the buyer. The buyer arranges the main transportation, insurance and import clearance. Risk transfers when the goods are delivered to the appointed carrier.
The seller arranges and pays for transportation to the named destination. However, risk transfers when the goods are handed to the first carrier, not when they arrive at the destination. The buyer handles import clearance, duties and taxes.
The seller arranges and pays for transportation and cargo insurance to the named destination. Risk transfers to the buyer when the goods are handed to the first carrier. The buyer handles import clearance, customs duties and taxes.
The seller arranges transportation and delivers the goods to the named destination, ready for unloading. The buyer is responsible for unloading, import clearance, customs duties and taxes. Risk transfers when the goods arrive before unloading.
The seller arranges transportation and unloads the goods at the named destination. The buyer handles import clearance, customs duties and taxes. Risk transfers after the goods have been unloaded.
The seller handles transportation, export clearance, import clearance, customs duties and applicable taxes. The buyer receives and unloads the goods at the named destination. DDP places the greatest responsibility on the seller.
The seller clears the goods for export and places them alongside the nominated vessel at the origin port. The buyer handles vessel loading, ocean freight, insurance and import clearance. Risk transfers when the goods are placed alongside the vessel.
The seller clears the goods for export and loads them onto the nominated vessel at the origin port. The buyer arranges ocean freight, insurance and import clearance. Risk transfers once the goods are loaded on board the vessel.
The seller clears the goods for export and pays the ocean freight to the named destination port. The buyer handles insurance, import clearance, duties and destination delivery. Risk transfers when the goods are loaded onto the vessel at the origin port.
The seller pays for ocean freight and minimum cargo insurance to the named destination port. The buyer handles import clearance, customs duties and destination arrangements. Risk transfers when the goods are loaded onto the vessel at the origin port.
