What are Incoterms 2020?

Incoterms 2020 are a set of standard trade terms published by the International Chamber of Commerce (ICC). They define how responsibilities for transport, risk and certain costs are shared between buyer and seller in international trade contracts.

Which terms are included in this glossary?

This glossary covers all eleven Incoterms 2020 (EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAP, DPU and DDP) plus key shipping documents, operations, customs & compliance, warehousing, finance & payment, freight & cost terms, and basic trade & market terms.

Is this legal advice or an official ICC source?

No. This page is an informal, plain-language summary to help importers and exporters understand Incoterms and shipping terminology at a high level. It does not replace the official Incoterms 2020 publication of the International Chamber of Commerce (ICC) or legal advice for your specific contracts.

Incoterms & International Shipping Terms in One Place

Use this glossary to quickly check what CIF, FOB, EXW, DDP and other Incoterms mean – plus the most common documents, customs, warehousing, payment and freight cost terms used on real shipments.

“Incoterms” is a registered trademark of the International Chamber of Commerce (ICC). This page is a short, informal explanation – not a substitute for the official Incoterms 2020 publication or legal advice.

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Understanding Incoterms

What Incoterms do in a contract

At a high level, Incoterms define:

Where risk passes from seller to buyer (e.g. when goods are loaded, shipped or delivered).
Which party pays for transport, insurance and certain logistics costs.
Who handles export and import clearance in customs.

They do not decide ownership/title or payment terms by themselves – those are covered in the broader sales contract.

Grouping the Incoterms 2020

There are 11 Incoterms 2020 split into two groups:

Any mode of transport: EXW, FCA, CPT, CIP, DAP, DPU, DDP.
Sea / inland waterway only: FAS, FOB, CFR, CIF.

In containerised sea shipments, FCA, CPT or CIP are often more accurate than FOB or CIF, because risk usually passes when the container is handed over to the carrier, not at the ship’s rail.

Apply Incoterms to Real Shipments

With Bill of Lading Data, you can see how different companies actually trade under FOB, CIF, DAP, DDP and other terms on real bills of lading.

Analyse which Incoterms are most common by HS code or product.
See trade lanes where CIF vs FOB is more frequent.
Identify potential customers who already import under specific terms.

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Incoterms & Shipping Glossary: CIF, FOB, EXW, Documents & More

Incoterms & International Shipping Terms in One Place