Incoterms 2020, short for International Commercial Terms, are a set of predefined trade terms published by the International Chamber of Commerce (ICC). They are widely used in international trade and provide a common framework to clearly communicate the responsibilities, risks, and costs associated with the transportation and delivery of goods between buyers (importers) and sellers (exporters). Incoterms are updated periodically to reflect changes in global trade practices. The most recent version is Incoterms 2020, which came into effect on January 1, 2020.
Incoterms 2020 are classified into different categories based on the level of responsibility and risk involved in the transaction. The currently accepted Incoterms 2020 edition include 11 terms, which are grouped into two categories:
These Incoterms 2020 can be used for any mode of transport, including road, rail, air, and sea transport. They are:
These terms are specifically designed for use in transport by sea and inland waterway. They are:
