What are Incoterms®?

Incoterms® is short for International Commercial Terms. They’re a set of 11 rules that define who's responsible for a shipment throughout the shipping process.

Why does my shipment need Incoterms®?

Incoterms® define the point in the shipping process when the responsibilities for a shipment (such as risk, costs and insurance) shift from sender to receiver.

Before goods are shipped, the sender and receiver agree on the Incoterms®, which specify who pays for what shipping costs. This lowers the risk of costly misunderstandings later – such as the sender failing to insure the goods, or the receiver having to pay carrier fees upon delivery.

Where can I find them on shipping documents?

You can find or write the Incoterms® on the commercial invoice. They’re required for every shipment.

2010 and 2020 editions

Incoterms® are developed by the International Chamber of Commerce (ICC), which releases a new edition around every 10 years.

The latest edition is Incoterms® 2020, however the previous edition from 2010 still remains valid and in use. Senders and receivers can use a rule from either version, as long as they agree on the same rule and specify the edition.

What are the different types?

Both 2010 and 2020 editions have 11 rules which are divided into two categories:  one for all modes of transport, and one for sea and inland waterway transport only.

Below is a listing of all Incoterms®. To learn about the specific details of each rule, please refer to the Incoterms® page on the ICC website.

what-are-the-different-types-?

Incoterms® 2020

Rule      

Name

Mode of transport

EXW

Ex Works

All

FCA (A or B)

Free Carrier

All

CPT

Carriage Paid To

All

CIP

Carriage and Insurance Paid to

All

DAP

Delivered At Place

All

DPU

Delivered at Place Unloaded
(previously DAT in 2010 edition)

All

DDP

Delivered Duty Paid

All

FAS

Free Alongside Ship

Sea and waterway transport only 

FOB

Free On Board

Sea and waterway transport only

CFR

Cost and Freight

Sea and waterway transport only

CIF

Cost, Insurance and Freight

Sea and waterway transport only

Shipping requirements and documentation may vary between carriers. This website is designed to provide general information related to shipping. If you’re unsure of the shipping requirements that apply to you, check with your carrier. Make sure to check the rules and regulations of the country you’re shipping from and to prior to shipping. You can find this information on government websites.


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