# International Commercial Terms (Incoterms® 2020)

*Last updated: 2026-06-24*

> To eliminate disputes over who pays for transport, who bears the risk of loss, and who handles customs—that is the purpose of Incoterms® 2020, the standard trade terms published by the International Chamber of Commerce (ICC) for use in international sales contracts.

To eliminate disputes over who pays for transport, who bears the risk of loss, and who handles customs—that is the purpose of Incoterms® 2020, the standard trade terms published by the International Chamber of Commerce (ICC) for use in international sales contracts. They specify up to which point the seller organises carriage, whether seller or buyer arranges transport insurance, and who handles export and import customs clearance. The current edition contains eleven rules: seven applicable to any mode of transport (including EXW, DAP, DDP, and CIP) and four exclusive to sea and inland waterway transport (FOB, CFR, CIF, FAS). In practice, the chosen rule is always paired with a named place, e.g. "CIF Port of Rotterdam, Incoterms® 2020". Incoterms® do not govern transfer of title or payment terms—those must be addressed separately in the sales contract.

**Source:** [https://iccwbo.org/business-solutions/incoterms-rules/](https://iccwbo.org/business-solutions/incoterms-rules/)

## Quick Facts

| Property | Value |
|---|---|
| Term | International Commercial Terms (Incoterms® 2020) |
| Language | EN |
| Word count | 136 |
| Last updated | 2026-06-24 |
| Source | https://iccwbo.org/business-solutions/incoterms-rules/ |

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