# Incoterms duties and charges

*Last updated: 2026-06-13*

> When goods cross borders under an Incoterm, duties, taxes, and levies arise – the allocation of these charges between buyer and seller is determined by the selected rule.

When goods cross borders under an Incoterm, duties, taxes, and levies arise – the allocation of these charges between buyer and seller is determined by the selected rule. Each Incoterm defines a different cut-off point: under FOB, the buyer assumes customs clearance costs at destination; under DDP, the seller covers all charges up to final delivery. For importers, understanding which party bears the duty cost is critical to avoid hidden expenses, especially where tariff rates and import VAT are significant.

**Source:** [https://iccwbo.org/incoterms-2020/](https://iccwbo.org/incoterms-2020/)

## Quick Facts

| Property | Value |
|---|---|
| Term | Incoterms duties and charges |
| Language | EN |
| Word count | 80 |
| Last updated | 2026-06-13 |
| Source | https://iccwbo.org/incoterms-2020/ |

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