Incoterms 2020 Explained: A Practical Guide for Importers

Incoterms® are the backbone of international trade contracts. Published by the ICC and updated in 2020, they define who pays for freight, insurance, customs and where risk transfers.

The 11 Incoterms are EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAP, DPU and DDP.

For first-time importers we usually recommend CIF or CPT. For experienced buyers with their own forwarder, FOB offers more cost control.