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There are eleven Incoterms (International Commercial Terms) 2020 rules that define the obligations of buyers and sellers for the delivery of goods. Here is a summary of each of the Incoterms 2020 rules:

  1. EXW (Ex Works) - The seller only has to make the goods available at their premises. The buyer is responsible for arranging and paying for transportation.

  2. FCA (Free Carrier) - The seller delivers the goods to the carrier or another nominated person at a named place. The buyer is responsible for arranging and paying for transportation.

  3. FAS (Free Alongside Ship) - The seller delivers the goods alongside the vessel at a named port. The buyer is responsible for arranging and paying for transportation.

  4. FOB (Free On Board) - The seller delivers the goods on board the vessel at a named port. The buyer is responsible for arranging and paying for transportation.

  5. CFR (Cost and Freight) - The seller is responsible for delivering the goods on board the vessel at a named port and for paying the cost of transportation to the named destination.

  6. CIF (Cost, Insurance, and Freight) - The seller is responsible for delivering the goods on board the vessel at a named port, paying the cost of transportation to the named destination, and providing minimum insurance coverage.

  7. CPT (Carriage Paid To) - The seller is responsible for delivering the goods to a named place and paying the cost of transportation to the named destination.

  8. CIP (Carriage and Insurance Paid To) - The seller is responsible for delivering the goods to a named place, paying the cost of transportation to the named destination, and providing minimum insurance coverage.

  9. DAP (Delivered At Place) - The seller is responsible for delivering the goods to a named place, and the buyer is responsible for unloading the goods.

  10. DPU (Delivered at Place Unloaded) - The seller is responsible for delivering the goods to a named place and unloading them. The buyer is responsible for taking possession of the goods once they are unloaded at the named place of destination.

  11. DDP (Delivered Duty Paid) - The seller is responsible for delivering the goods to a named place, paying all transportation and insurance costs, and assuming all risks and liabilities until the goods are ready for unloading at the named place.


Incoterms 2020 Detailed Graphic

Incoterms 2020