GlossaryEN1 min readUpdated: Jun 13, 2026
Incoterms duties and charges
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.
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Source: https://iccwbo.org/incoterms-2020/
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Incoterms 2020 Simulator: Who bears costs & risk?
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Definition & Explanation
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.
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⚖️ ICC Incoterms 2020
Incoterms 2020 Simulator: Who bears costs & risk?
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