Incoterms® 2020 Guide
Master international trade terms with our comprehensive interactive guide
Explore the complete set of 11 standardized international commercial terms that define responsibilities, costs, and risks between buyers and sellers. Whether you're handling sea freight, air cargo, or multimodal transport, our interactive tool helps you understand when and how to use each Incoterm effectively in your global trade operations.
Incoterms Categories
Quick overview of the four main Incoterm categories
Departure
Minimum seller obligation
Main Carriage Unpaid
Seller delivers to carrier
Main Carriage Paid
Seller pays transport
Arrival
Maximum seller obligation
Interactive Incoterms Explorer
Select an Incoterm
Choose from the 11 official Incoterms® 2020 to explore detailed responsibilities, costs, and risks for each term.
The seller delivers goods to a carrier nominated by the buyer at a named place.
Transport Mode
Any
Responsibility Level
Seller delivers to carrier
What are Incoterms?
Incoterms (International Commercial Terms) are standardized trade terms published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international transactions.
When should I use sea-specific terms (FAS, FOB, CFR, CIF)?
Use these terms only for sea and inland waterway transport. For containerized goods or multimodal transport, use the universal terms like FCA, CPT, CIP instead.
What's the difference between risk and cost transfer?
Risk transfer determines who bears the risk of loss or damage, while cost transfer determines who pays for transport. In 'C' terms, these transfer at different points.
Which Incoterm should I choose?
The choice depends on your experience, transport mode, relationship with the other party, and desired level of control over the logistics process.
What's the difference between CIF and CIP?
CIF is for sea transport only and requires minimum insurance coverage (110% of CIF value). CIP is for any transport mode and also requires minimum insurance coverage, making it more versatile.
When should I use EXW?
EXW should be used sparingly, mainly for domestic trade or when the buyer has extensive logistics experience and wants complete control over the shipping process from the seller's premises.
What are the main responsibilities under DDP?
Under DDP, the seller handles all export/import procedures, pays all duties and taxes, arranges transport, and bears all risks until goods are delivered to the buyer's premises.
Can I modify Incoterms in my contract?
While possible, modifying Incoterms is not recommended as it defeats their purpose of standardization. Instead, use additional contract clauses to address specific requirements.
Who arranges insurance under CPT?
Under CPT, the seller pays for transport but insurance is the buyer's responsibility. If you want the seller to arrange insurance, use CIP instead.
What's the difference between DAP and DPU?
DAP delivers goods ready for unloading at destination (buyer unloads), while DPU requires the seller to unload the goods at the named place of destination.
Are Incoterms legally binding?
Incoterms become legally binding when incorporated into a sales contract. They don't form a contract by themselves but define obligations within an existing contract.
How often are Incoterms updated?
Incoterms are typically updated every 10 years by the ICC. The current version is Incoterms 2020, which replaced Incoterms 2010.
Can I use Incoterms for domestic trade?
While designed for international trade, Incoterms can be used domestically. However, ensure they're appropriate for your jurisdiction and consider using domestic trade terms when available.
What happens if goods are damaged in transit?
Liability depends on where the risk transfers. The party bearing risk at the time of damage is responsible, which is why understanding risk transfer points is crucial.
Do Incoterms cover payment terms?
No, Incoterms only define delivery obligations and risk transfer. Payment terms, currency, and methods must be specified separately in the sales contract.
Official Documentation
ICC Publication No: 723
Incoterms® 2020: ICC rules for the use of domestic and international trade terms
International Chamber of Commerce, 2019
A Guide to Incoterms® 2020
Practical guidance and real-world examples for implementing Incoterms® rules
Step-by-step implementation guidance with case studies
Incoterms® Publications
Complete collection of ICC Incoterms® publications and resources
Browse all available Incoterms® books, guides and materials
Incoterms® 2020 Wall Chart
Visual reference showing key obligations, costs and risks for all 11 terms
Free download - Quick reference tool for offices and training rooms
Additional Resources
ICC Academy Training
Official Incoterms® 2020 Certificate program and professional training courses
Online courses and certification available worldwide
ICC Mobile Applications
Access to ICC mobile applications including Incoterms® tools
Available for iOS and Android devices
ICC Registered Trainers
Global network of ICC-certified Incoterms® 2020 trainers and consultants
Professional training services available worldwide
Trade Finance Resources
Integration with documentary credits, trade finance instruments and payment methods
Understanding Incoterms® in broader trade finance context
Legal and Regulatory Framework
UNCITRAL, WTO agreements and international commercial law resources
Supporting legal frameworks for international trade
ICC Knowledge 2 GO Platform
Official ICC digital platform for purchasing Incoterms® publications and resources
Academic and Research Resources
Scholarly articles, research papers and academic publications on Incoterms®
Latest Updates and News
ICC announcements, interpretations and guidance on Incoterms® application
Legal Disclaimer
This guide provides general educational information about Incoterms® 2020. Incoterms® is a registered trademark of the International Chamber of Commerce. For specific transactions or legal interpretations, always consult official ICC publications, qualified trade professionals, and relevant local regulations. International trade practices may vary by jurisdiction and industry.
Last Updated: September 2025