Where does Risk, Cost, & Delivery Transfer?
Promulgated by the International Chamber of Commerce, Incoterms® are the set of international standards for the uniform interpretation of common contract clauses in international trade. Incoterms® 2020, comprises the latest revisions and should be used exclusively starting January 1, 2020. Incoterms® stands for “International Commercial Terms” and are internationally recognized terms of agreement for buying and selling goods across the globe and even domestically. Incoterms® are agreed upon between the seller and buyer in regards to when the risk and responsibility of the goods and transport are transferred. Incoterms® are not law nor binding. They are only used as a guidance guide and represent different ways international shipments are bought and sold.
Download the Incoterms® 2020 Chart of Responsibility
We have created a handy downloadable PDF which indicated where the risk is transferred from the seller to the buyer, as well as delivery and cost of goods. Please insert your information to receive a PDF version of the chart. This chart will print on a letter size paper.
Suggested Incoterms® in the United States
When buying goods or importing into the United States, we recommend F Terms. When selling goods or exporting out of the United States, we recommend C Terms.
Changes from Incoterms 2010 and Incoterms 2020 ?
One of the latest changes included in the Incoterms® 2020 includes the elimination of DAT and the addition of DPU. DAT stood for “Delivered at Terminal.” DPU stands for “Delivered at Place Unloaded.” It is the only Incoterm® that requires the seller to unload the goods at the named place of destination.
The Incoterms do Not…
Incoterms do not automatically apply. Incoterms must be specifically written out in the sales contract. The Incoterms® also do not determine ownership or transfer of title or ownership to the goods nor do they determine payment terms.
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