GlossaryEN1 min readUpdated: Jun 13, 2026

Incoterms fiscal risk

A buyer imports goods and immediately faces the question: who pays customs duties, import VAT, and any excise taxes?

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Last updated: 13 June 2026Published: 27 January 2026

Source: https://iccwbo.org/incoterms-2020/

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Incoterms 2020 Simulator: Who bears costs & risk?

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Definition & Explanation

A buyer imports goods and immediately faces the question: who pays customs duties, import VAT, and any excise taxes? Incoterms fiscal risk describes exactly this financial responsibility – which party bears taxes and levies, from which point onward in the supply chain, and who is liable if payment fails. EXW and FOB shift risk to the buyer early; CIF and CIP distribute it more evenly; DDP and DDU keep it with the seller until delivery or shortly after. Selecting the right Incoterm is therefore crucial for budget forecasting and regulatory compliance.

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Compare IncotermsClarify duties, cost and riskOpen Calculate customs valueWork out import duties and customs valueOpen Check transport insuranceEstimate coverage and premiumOpen Find a matching partnerFreight forwarders and logistics partners worldwideOpen

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Incoterms fiscal risk

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Related Terms

Incoterms Fiscal Representation Analysis

Incoterms Trade Finance

Incoterms financing

Incoterms Risk Heatmap

FCA and CMR

Smart Incoterm Management

Incoterms 2020 Simulator: Who bears costs & risk?

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