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An Introduction to Incoterms 2020 Rules

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Incoterms are a voluntary, authoritative, globally-accepted and adhered-to text that determines responsibilities of buyers and sellers for the delivery of goods under sales contracts for international trade. They are published by the International Chamber of Commerce (ICC) and were updated in 2020.
Incoterms provide exporters and importers clear, succinct rules that help them understand their responsibilities, clarify any gray areas in contracts and can save a lot of headaches when used correctly. With an understanding, goods will be delivered more easily and sellers will get paid more quickly.
This guide is an in-depth examination of Incoterms:
  • What they are
  • How they originated
  • What has changed for Incoterms 2020
  • How to apply them
  • How exporters and importers benefit from them
  • Why they matter

This guide also includes an in-depth explanation of each of the 11 Incoterms, including what mode of transportation each can be used for, how costs and risk are allocated and when liability transfers from seller to buyer. 

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