GlossaryEN1 min readUpdated: Jun 22, 2026
International Commercial Terms
International Commercial Terms – universally known as Incoterms – give buyers and sellers a shared language for allocating transport costs, insurance obligations, and the point at which risk transfers from seller to buyer.
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Source: https://iccwbo.org/business-solutions/incoterms-rules/
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Incoterms 2020 Simulator: Who bears costs & risk?
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Definition & Explanation
International Commercial Terms – universally known as Incoterms – give buyers and sellers a shared language for allocating transport costs, insurance obligations, and the point at which risk transfers from seller to buyer. Published by the International Chamber of Commerce (ICC), they define the delivery point and the responsibilities of each party, but do not address title to goods, payment terms, or governing law. Practitioners use shorthand codes such as FOB, CIF, and DDP to keep contracts concise and reduce the scope for disputes. Incoterms 2020, the current edition, contains eleven rules: seven applicable to any mode of transport and four—including FOB and CIF—restricted to sea and inland waterway transport. They should not be confused with US domestic trade terms, which share some abbreviations but carry different meanings.
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⚖️ ICC Incoterms 2020
Incoterms 2020 Simulator: Who bears costs & risk?
Analyze all 11 Incoterms 2020: cost matrix, risk timeline, insurance gap detector and customs responsibility – free, no login required.
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