Incoterms 2020
Incoterms® 2020 are international rules from the International Chamber of Commerce that define the responsibilities of buyers and sellers in global trade. They act as a common language, ensuring both parties clearly understand their obligations.
Who Do Incoterms® 2020 Rules Relate To?
They apply to buyers (importers) and sellers (exporters) in contracts of sale, outlining responsibilities such as transport, insurance and duties.
Why Have Incoterms® 2020 Rules?
They reduce risk by standardising trade terms, helping avoid disputes and costly misunderstandings.
How Are Incoterms® 2020 Rules Chosen?
The buyer and seller agree on the most suitable rule during contract negotiations.
Incoterms® 2020 will not apply unless incorporated into the contract of sale by clearly specifying that the contract is governed by Incoterms® 2020. Incoterms® are ICC’s standard definitions of trade terms and are internationally recognised as indispensable evidence of the Buyer’s and Seller’s responsibilities for delivery under a sales contract. This is a basic guide, we recommend
you refer to the Handbook created by the ICC - International Chamber of Commerce for more detailed information regarding Incoterms® 2020. http://www.iccwbo.org/products-and-services/trade-facilitation/incoterms-2020
* CIF requires at least an insurance with the minimum cover of the Institute Cargo Clause (C) (Number of listed risks, subject to itemised exclusions).
** CIP now requires at least an insurance with the minimum cover of the Institute Cargo Clause (A) (All risk, subject to itemised exclusions).
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