Incoterms 2020 Selector & Guide

Incoterms 2020 Selector & Guide helps buyers and sellers compare trade rules based on transport mode, insurance needs, export clearance, and delivery responsibility. Answer a few planning questions to see suitable rules and a concise explanation of cost and risk allocation.

Incoterms are not a substitute for a sales contract, insurance policy, customs advice, or carrier agreement. State the selected rule, named place or port, and “Incoterms® 2020” clearly in your contract, then obtain professional advice for your transaction.

• Transport-mode filter: Separate any-mode rules from sea/inland-waterway rules.
• Responsibility prompts: Consider import clearance, insurance, and delivery point.
• Rule comparison: Review EXW through DDP in one practical guide.
• Risk reminder: Highlights that cost and risk do not always transfer at the same moment.
• Contract wording cue: Encourages a named place/port and the 2020 edition.

1. Select the transport mode and answer responsibility questions.
2. Review the suggested terms and their high-level delivery allocation.
3. Choose a named place or port precisely.
4. Confirm the term with your forwarder, customs advisor, insurer, and contract counsel.

Example: A seller delivering containerized cargo to a carrier at origin may consider FCA. A seller arranging carriage to a named destination but not import clearance may consider CPT or CIP, depending on insurance requirements.

• Choose more intentionally: Match a term to operations rather than defaulting to familiar acronyms.
• Reduce disputes: Discuss risk, cost, clearance, and insurance before shipping.
• Improve contracts: Prompt complete rule-and-place wording.