Incoterms

How it is used

Each rule is a three-letter code followed by a named place and the edition, such as 'FOB Mersin, Incoterms 2020'. The 2020 edition has 11 rules. Incoterms do not set the price, the payment method or the moment ownership of the goods passes.

Example sentences

1. Which Incoterms rule are we quoting on, FCA or DAP?

2. The contract doesn't mention the Incoterms edition, so let's add 'Incoterms 2020' to avoid any dispute.

Common collocations

• Incoterms 2020
• Incoterms rule
• agree on Incoterms
• named place

Related terms

• EXWShort for Ex Works: the Incoterms rule in which the seller only makes the goods available at its own premises, and the buyer handles loading, export clearance and all transport.
• FOBShort for Free On Board: an Incoterms rule for sea transport in which the seller delivers the goods on board the vessel chosen by the buyer, and risk passes to the buyer at that point.
• CIFShort for Cost, Insurance and Freight: a sea-only Incoterms rule in which the seller pays freight and minimum insurance to the destination port, but risk passes to the buyer once the goods are on board.
• DAPShort for Delivered at Place: an Incoterms rule in which the seller carries the goods and the risk to the named destination, ready for unloading, while the buyer handles import clearance and duties.
• DDPShort for Delivered Duty Paid: the Incoterms rule with the most obligations for the seller, who delivers to the named place cleared for import and pays all duties and taxes.

This word in other fields

The same English word can have a different meaning in another field:

• Incoterms · International Trade