GlossaryEN1 min readUpdated: Jun 25, 2026

International Commercial Terms (Incoterms®)

An exporter and a buyer have agreed on a price – but who pays ocean freight, who files the customs declaration, and at what point does risk pass?

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Last updated: 25 June 2026Published: 19 June 2025

Source: https://iccwbo.org/business-solutions/incoterms-rules/

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Passar Hub: Everything on the new Swiss customs system

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Definition & Explanation

An exporter and a buyer have agreed on a price – but who pays ocean freight, who files the customs declaration, and at what point does risk pass? Incoterms® answer exactly these questions. Published by the International Chamber of Commerce (ICC), they are eleven standardized trade terms ranging from EXW (Ex Works, minimum seller obligation) to DDP (Delivered Duty Paid, maximum seller obligation), specifying cost allocation, risk transfer, insurance responsibilities, and export/import customs duties for each party. Universally recognized in sales contracts and letters of credit, they do not replace governing law and address neither payment terms nor title transfer. They should not be confused with the UN Convention on Contracts for the International Sale of Goods (CISG), which governs the contract as a whole.

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⚡ Current 2026

Passar Hub: Everything on the new Swiss customs system

Passar replaces E-dec and NCTS. Passar 1.0 (export) is live, Passar 2.0 (import) starts from Q2 2026. Roadmap, ePortal registration, deadlines and FAQ — all on one page.

Passar 1.0Passar 2.0 → Q2 2026Passar 3.0 → Q2 2027

Passar Hub →Declar Info

⚖️ 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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International Commercial Terms (Incoterms®)

Next steps

Related Terms

CFR (Cost and Freight)

Cost, Insurance and Freight (CIF)

Temporary Storage Facility

Spot Rate

Long-term origin declaration

Deferred Payment

Passar Hub: Everything on the new Swiss customs system

Incoterms 2020 Simulator: Who bears costs & risk?

Logistics knowledge straight to your inbox

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