09/10/2026
🌍 INCOTERMS® 2020
A Complete Guide to International Trade
📦 What are Incoterms?
Incoterms® (International Commercial Terms) are internationally recognized rules published by the International Chamber of Commerce (ICC). They clarify the responsibilities of buyers and sellers for delivery, transportation costs, risk transfer, and export/import formalities.
🚢 THE 11 INCOTERMS® EXPLAINED
🌐 Applicable to Any Mode of Transport
EXW – Ex Works
FCA – Free Carrier
CPT – Carriage Paid To
CIP – Carriage and Insurance Paid To
DAP – Delivered at Place
DPU – Delivered at Place Unloaded
DDP – Delivered Duty Paid
🚢 Sea & Inland Waterway Transport Only
8. FAS – Free Alongside Ship
9. FOB – Free on Board
10. CFR – Cost and Freight
11. CIF – Cost, Insurance and Freight
💡 WHY ARE INCOTERMS IMPORTANT?
✅ Clarify buyer and seller responsibilities
✅ Understand freight and delivery costs
✅ Identify when transport risk transfers
✅ Help negotiate international contracts
✅ Reduce misunderstandings in global trade
📌 PRACTICAL EXAMPLE
Under CIF Jebel Ali Port, the seller pays the cost, insurance and freight to the named destination port. However, risk generally transfers to the buyer when the goods are loaded on board the vessel at the port of shipment.
🎓 Learn Import & Export. Understand Global Trade.
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