Incoterms 2020 Guide

• Make the goods ready at the agreed location (e.g. factory, warehouse).
• Provide the commercial invoice and any documentation contractually agreed.
• Assist with export documents on request, at the buyer’s cost and risk.

• Load the goods at the seller’s premises.
• Arrange and pay for all transport from origin to destination.
• Handle export and import customs formalities, duties and taxes.

Cargo insurance is not required by the rule. Because risk transfers when the goods are made available, the buyer typically arranges cover for the full journey.

When the goods are placed at the buyer’s disposal at the named place.

• Deliver the goods to the buyer’s nominated carrier at the named place.
• Carry out export clearance and provide standard documentation.
• Package and label the goods suitably for the journey.

• Arrange and pay for the main carriage from the handover point.
• Handle import clearance, duties and any onward delivery.
• Take charge of unloading at destination where applicable.

Insurance is not required by the rule. The buyer usually arranges cover from the moment the goods are handed over to the carrier.

When the goods are handed over to the carrier nominated by the buyer at the named place.

• Contract and pay for carriage to the named destination.
• Handle export clearance.
• Deliver the goods to the first carrier.

• Handle import clearance and any related charges.
• Bear unloading costs at destination where applicable.
• Arrange cargo insurance if cover is wanted.

Insurance is not required of the seller. As risk transfers at the first carrier, the buyer typically arranges cover for the main carriage even though the seller pays for transport.

When the goods are handed to the first carrier.

• Contract and pay for carriage to the named destination.
• Obtain cargo insurance for at least 110% of the contract value, in the contract currency.
• Handle export clearance.

• Handle import clearance and related charges.
• Bear unloading costs at destination where applicable.
• Arrange any additional insurance considered necessary.

The seller must obtain insurance equivalent to Institute Cargo Clauses (A) or a comparable wide cover. The buyer may purchase additional cover for risks excluded by the seller’s policy.

When the goods are handed to the first carrier.

• Bear transport costs to the named destination.
• Handle export clearance.
• Bear the risk until the goods are made available for unloading.

• Handle import clearance, duties and taxes.
• Unload the goods at destination.

Insurance is not required by the rule. As the seller bears the risk up to destination, the seller commonly arranges its own cover; the buyer may also arrange cover for the import-side risks.

When the goods are placed at the buyer’s disposal, ready for unloading at the named destination.

• Bear all transport and unloading costs to the named destination.
• Handle export clearance.
• Bear the risk until the goods are unloaded at destination.

• Handle import clearance, duties and taxes.
• Arrange any onward transport after unloading.

Insurance is not required by the rule. The seller carries the risk up to unloading and commonly arranges cover accordingly.

When the goods are unloaded and placed at the buyer’s disposal at the named destination.

• Bear all costs and risks up to the named destination.
• Handle export and import clearance.
• Pay all duties, taxes and import charges.

• Receive the goods at the named destination.
• Unload the goods unless otherwise agreed.

Insurance is not required by the rule. Because the seller bears the risk for the full journey, it usually arranges cover up to destination.

When the goods are placed at the buyer’s disposal, cleared for import, at the named destination.

• Deliver the goods alongside the vessel at the named port.
• Handle export clearance.
• Bear pre-shipment costs at origin.

• Arrange and pay for loading on board and main carriage.
• Handle import clearance.
• Arrange marine cargo insurance if cover is wanted.

Insurance is not required by the rule. The buyer typically arranges marine cargo insurance from the moment the goods are alongside the vessel.

When the goods are placed alongside the vessel at the named port of shipment.

• Load the goods on board the vessel at the named port.
• Handle export clearance.
• Bear pre-shipment costs at origin.

• Pay for main carriage from the port of shipment.
• Handle import clearance and duties.
• Arrange marine cargo insurance if cover is wanted.

Insurance is not required by the rule. The buyer typically arranges marine cargo insurance from the moment the goods are loaded on board.

When the goods are placed on board the vessel at the named port of shipment.

• Pay sea freight to the named port of destination.
• Handle export clearance.
• Bear loading costs at the port of shipment.

• Handle import clearance and related charges.
• Bear unloading costs at destination unless included in freight.
• Arrange marine cargo insurance if cover is wanted.

Insurance is not required of the seller. Because risk transfers on board at origin, the buyer typically arranges marine cargo insurance even though the seller pays the freight.

When the goods are placed on board the vessel at the port of shipment.

• Pay sea freight to the named port of destination.
• Obtain marine cargo insurance for at least 110% of the contract value, in the contract currency, with cover equivalent to ICC (C) as a minimum.
• Handle export clearance.

• Handle import clearance and related charges.
• Bear unloading costs at destination unless included in freight.
• Arrange any additional insurance considered necessary.

The seller must obtain marine cargo insurance with at least ICC (C) cover for 110% of the contract value. The buyer may arrange additional cover for risks not included.

When the goods are placed on board the vessel at the port of shipment.