incoterms 2020

ICC recommends using Incoterms 2020 starting January 1, 2020, parties to a sales contract can agree to use any version of Incoterms after 2020.

What are incoterms rules?

Incoterms specifies who is responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities.

The Incoterms rules are the world’s essential terms of trade for the sale of goods. Whether you are filing a purchase order, packaging and labelling a shipment for freight transport, or preparing a certificate of origin at a port, the Incoterms rules are there to guide you. The Incoterms rules provide specific guidance to individuals participating in the import and export of global trade on a daily basis.

Incoterms are published by the International Chamber of Commerce (ICC) and the incoterms 2020 is the newest edition of incoterms rules.

Sources: trade.gov & International Chamber of Commerce

Seven Incoterms 2020 rules for any mode of transportation

The seller makes the goods available to the buyer at the named place.

The seller makes the goods available to the carrier assigned by the buyer at a named location. The seller must load the goods.

The seller turns over the goods to the carrier at the place of delivery. At this place only the risk transfer from the seller to the buyer takes place. The seller concludes the contract of carriage and thus bears the freight costs to the place of destination.

The seller turns over the goods to the carrier at the place of delivery. At this place only the risk transfer from the seller to the buyer takes place. The seller concludes the contract of carriage and thereby bears the freight costs to the place of destination. The seller must also cover transport insurance for the benefit of the buyer at his own expense. Minimum coverage Institute Cargo Clauses “A” , sales price plus 10% imaginary profit.

The seller’s goods shall be considered to be delivered as soon as the goods are made available to the buyer for unloading at the named place of destination.

The seller’s goods shall be considered to be delivered as soon as the goods have been unloaded from the arriving means of transport and made available to the buyer at the named place of destination. All costs and risks of transporting the goods to the named place, including unloading costs, shall be for the account of the seller.

The seller’s goods shall be considered to be delivered as soon as they have been made available for unloading at the named place of destination. The Seller shall bear all costs including customs duties, taxes and importation of the goods.

Four Incoterms 2020 rules for sea and inland waterway transportation

The goods are considered to be delivered when they have been taken to the long side of the ship (e.g. terminal) at the named port of loading.

The seller makes the goods available to the buyer on board of the named vessel at the named port of sailing.

The seller shall make the goods available to the buyer on board the ship at the named port of destination.

The seller shall make the good available to the buyer on board the vessel at the named port of destination. The seller must also cover transport insurance for the benefit of the buyer at his own expense. Minimum coverage Institute Cargo Clauses “C”, sales price plus 10% imaginary profit.

We can help

your customs and logistics needs

We're ready to help your business achieve more. Request a quote today and a Bullet representative will reach out shortly.

Explore our services

Our clients turn to us for a wide range of logistics solutions for their business

We can help!

CONTACT US →

Services ▼

Resources ▼

Bullet Customs Brokerage is among the leading customs brokerage firms in Davao and the Philippines. Enjoy peace of mind with our extensive expertise in trade compliance, logistics, and supply chain.