GlossaryEN1 min readUpdated: Jun 19, 2026

Packaging obligation (Incoterms)

When goods arrive damaged, the first question is almost always: was the packaging adequate?

Last updated: 19 June 2026Published: 27 January 2026

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

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Incoterms 2020 Simulator: Who bears costs & risk?

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When goods arrive damaged, the first question is almost always: was the packaging adequate? Each Incoterm allocates responsibility for export-worthy packing and correct marking of the goods. Under EXW, the seller simply makes goods available at their premises, leaving all packaging responsibility with the buyer. Under CIF or DDP, the seller must ensure packaging is suitable for the entire journey to the named destination, accounting for climate conditions, mode of transport, and handling operations. Inadequate packaging regularly leads to cargo claims, insurance denials, and reputational harm – insurers typically treat poor packing as a breach of duty of care. Additional requirements arise from sector-specific standards such as EUR-pallet dimensions or hazardous goods packaging rules under ADR and IMDG, which apply regardless of the chosen Incoterm.

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Packaging obligation (Incoterms)

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