Incoterms® 2020: everything you need to know
Are you an exporter or importer? Then you have agreements with your business partners abroad about the transport of goods. Agreeing on an Incoterm® gives you clarity on who is responsible for arranging transport, for the costs associated with the transport, and who bears the risk of damage or loss of the goods during this transport. There are several Incoterms® with different obligations for the seller (exporter) and buyer (importer).
The International Chamber of Commerce (ICC) has drawn up Incoterms®. These are revised every 10 years. The latest version is from 2020 and contains 11 Incoterms®. Which Incoterm® you agree on depends on the mode of transport and what obligations you want to take on. This article offers an explanation, examples, and the most important obligations for buyers and sellers per Incoterm®.