INCOTERMS 2020

Incoterms (International Commercial Terms) were first issued in 1936 by the ICC (International Chamber of Commerce), which included 7 trade conditions (EXW, FCA, FOR / FOT, FAS, FOB, C & F, CIF). So far, Incoterms has been amended 8 times:

1953: Added EX SHIP, EXCHANGE RATE
1967: Added DAF and DDP
1976: Added FOB Airport
1980: Add CPT and CIP
1990: Total included 13 conditions, removed FOR / FOT, FOB airport, added DDU
2000: Similar with Incoterms 1990 in structure but changed some details.
2010: Revised version of Incoterms 2000 with some changes, as known as Incoterms 2010 and being officially applied to international trade.
2020: Incoterms 2020 is the newest version, effective from January 1, 2020. It includes the following 11 terms: EXW, FCA, FOB, FAS, CFR, CIF, CPT, CIP, DAP, DPU, DDP.

The differences between Incoterms 2010 and Incoterms 2020 are:
- Replaced the term DAT with DPU.
- The insurance level of CIF and CIP conditions is specifically adjusted from the level of type C conditions to the highest type A.
- On-board Bill of Lading for delivery under FCA.
- Incoterms 2020 reorganizes the obligations of the parties to clarify the content of the delivery obligations and risk allocation.
- The obligation to share costs has been moved to section A9

Incoterms 2020

Marine Only Terms

1. FAS (Free Alongside Ship):

The risk of loss of or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from that moment onwards.

2. FOB (Free on Board):

The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.

3. CFR (Cost & Freight) to a named place:

The risk of loss of or damage to the goods passes when the goods are on board the vessel.

The buyer bears all costs once the seller has delivered the goods to the named place.

4. CIF (Cost, Insurance and Freight) to a named place:

The risk of loss of or damage to the goods passes when the goods are on board the vessel, but the seller covers insurance costs for the buyer until freight is delivered to the name place.

The buyer bears all costs once the seller has delivered the goods to the named place.

All Modes of Transportation

1. EXW (Ex Works):

The risk of loss or damage to the goods passes when the goods are recovered from the seller’s facility, and the buyer bears all costs from that moment onwards.

2. FCA (Free Carrier) to a named place:

The risk of loss of or damage to the goods passes when the goods are delivered by the seller to the named place, and the buyer bears all costs from that moment onwards, however, the seller must take care of the export clearance if applicable.

3. CIP (Carriage & Insurance Paid) to a named carrier/place:

The risk of loss of or damage to the goods passes when the goods turned over to the named carrier, but the seller covers insurance costs for the buyer until freight is delivered to the name place.

The buyer bears all costs once the seller has delivered the goods to the named place.

4. CPT (Carriage Paid To) to a named carrier/place:

The risk of loss of or damage to the goods passes when the goods are turned over to the named carrier, but the buyer bears all costs after carrier has delivered goods to a named place.

5. DAP (Delivered at Place) to a named place:

The risk of loss of or damage to the goods passes once the goods are delivered at the named place, and the buyer bears all costs from the named place onwards.

6. DPU (Delivery at Place Unloaded):

The risk of loss of or damage to the goods passes to the buyer once the goods are unloaded from the means of transport on arrival and placed at the buyer's disposal at the named place of destination.

7. DDP (Delivered Duty Paid):

The risk of loss or damage to the goods passes once the buyer has control of the product, and the seller bears all costs until goods delivered to the buyer.