Incoterms
Also known as: Incoterms 2020, International Commercial Terms
The standard three-letter trade terms (e.g. FOB, CIF, DDP) that allocate cost and risk between buyer and seller across an international shipment.
Incoterms (International Commercial Terms) are 11 standardised three-letter trade terms published by the International Chamber of Commerce, defining the buyer-seller allocation of cost, risk, and responsibility across an international shipment. The current version, Incoterms 2020, replaced the 2010 set. Categories: any-mode (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and sea/inland waterway only (FAS, FOB, CFR, CIF). Selecting the right Incoterm is the single most consequential commercial decision in a trade contract.