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.
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Download the Incoterms® 2020 Chart of Responsibility
We have created a handy downloadable PDF which indicates 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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Supply Chain Consulting
Scarbrough is offering a FREE 30-minute consultation to shippers and importers looking for help with strategies on supply chain optimization and adding to their bottom line. Email email@example.com or fill out the form below.
The Scarbrough Group of Companies, headquartered in Kansas City with local presence in every major port in the world, is a complete international and domestic supply chain service provider, offering U.S., Mexican, and Canadian Customs brokerage, Import & Export Transportation Solutions, Domestic brokerage and asset-based trucking, Warehouse fulfillment and distribution services, Trade Compliance Consulting, Large Equipment and Project Cargo moves, as well as Parcel Audit Savings. Scarbrough is widely known for its trade experts, training, personalized customer service, customized solutions, and data analytics tools. Since 1984, Scarbrough has continued to satisfy its clients by following its motto on a daily basis: “It is our job to make your job easier.” Moreover, our team of experts is available at your disposal. We offer free consultations on any topic from supply chain optimization and duty savings opportunities to the basics, helping to guide new importers and exporters as they jump into the world of global trade. Contact us now.