{"id":1378,"date":"2025-02-21T14:29:19","date_gmt":"2025-02-21T13:29:19","guid":{"rendered":"https:\/\/www.waternext.it\/new\/?p=1378"},"modified":"2025-06-11T14:50:43","modified_gmt":"2025-06-11T12:50:43","slug":"incoterms-2020-international-trade","status":"publish","type":"post","link":"https:\/\/www.waternext.it\/new\/2025\/02\/21\/incoterms-2020-international-trade\/","title":{"rendered":"INCOTERMS\u00ae 2020: AN ESSENTIAL GUIDE FOR INTERNATIONAL TRADE"},"content":{"rendered":"\n

WHAT ARE INCOTERMS\u00ae?<\/strong><\/h1>\n\n\n\n
\n

Incoterms\u00ae (International Commercial Terms) are standardized rules created by the International Chamber of Commerce (ICC) to define delivery terms, liability and costs in international trade. These terms, first introduced in 1936, are revised periodically, with the latest version dating from 2020. <\/p>\n<\/div>

\"\"<\/figure><\/div>\n\n\n\n

Thanks to Incoterms\u00ae, sellers and buyers can clearly establishing who is in charge of what during the shipping process, from the point of origin to the final destination, optimizing business operations.<\/p>\n\n\n\n

WHY ARE INCOTERMS\u00ae IMPORTANT?<\/strong><\/h1>\n\n\n\n

Incoterms\u00ae regulate:<\/p>\n\n\n\n

\ud83d\udccdResponsibilities<\/strong>: they define who is in charge of each stage of the shipment;<\/p>\n\n\n\n

\ud83d\udccdCosts<\/strong>: define who pays for transport, insurance and customs clearance;<\/p>\n\n\n\n

\ud83d\udccdRisks<\/strong>: identify when risks pass from the seller to the buyer.<\/p>\n\n\n\n

THE INCOTERMS\u00ae CATEGORIES<\/strong><\/p>\n\n\n\n

Incoterms\u00ae 2020 are divided into two main categories:<\/p>\n\n\n\n

1. Terms for any type of transport<\/strong><\/p>\n\n\n\n

Designed for all modes of transport, including multimodal shipments:<\/p>\n\n\n\n

\ud83c\udf0d EXW (Ex Works): the seller makes the goods available at its premises and the buyer takes care of the rest;<\/p>\n\n\n\n

\ud83c\udf0d FCA (Free Carrier): the seller delivers the goods to the carrier designated by the buyer;<\/p>\n\n\n\n

\ud83c\udf0d CPT (Carriage Paid To): the seller in this case takes care of the carriage to an agreed location;<\/p>\n\n\n\n

\ud83c\udf0d CIP (Carriage and Insurance Paid To): this Incoterms\u00ae is similar to CPT, but the seller also provides insurance cover;<\/p>\n\n\n\n

\ud83c\udf0d DAP (Delivered At Place): the seller delivers the goods ready for unloading;<\/p>\n\n\n\n

\ud83c\udf0d DPU (Delivered At Place Unloaded): the seller also unloads the goods;<\/p>\n\n\n\n

\ud83c\udf0d DDP (Delivered Duty Paid): the seller bears all costs and risks, including customs clearance at import.<\/p>\n\n\n\n

2. Terms for carriage by sea<\/strong><\/p>\n\n\n\n

These terms are specific to sea shipments:<\/p>\n\n\n\n

\ud83c\udf0a FAS (Free Alongside Ship): the seller delivers the goods alongside the ship designated by the buyer;<\/p>\n\n\n\n

\ud83c\udf0a FOB (Free On Board): the seller delivers the goods on board the ship;<\/p>\n\n\n\n

\ud83c\udf0a CFR (Cost and Freight): the seller pays for the carriage to the port of destination;<\/p>\n\n\n\n

\ud83c\udf0a CIF (Cost, Insurance and Freight): like CFR, but here a minimum insurance is also included.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

NEW FEATURES OF INCOTERMS\u00ae 2020<\/strong><\/h1>\n\n\n\n

The 2020 edition has introduced some relevant changes to meet the evolving needs of international trade:<\/p>\n\n\n\n

\ud83c\udf0d Introduction of DPU: the term DPU (Delivered At Place Unloaded) replaces DAT (Delivered At Terminal), emphasizing that the place of delivery does not have to be a terminal;<\/p>\n\n\n\n

\ud83c\udf0d Bill of Lading with \u2018on board\u2019 annotation in FCA: to facilitate documentary credit operations;<\/p>\n\n\n\n

\ud83c\udf0d Increased insurance cover in CIP: a policy in accordance with Institute Cargo Clauses (A) is required, covering all risks;<\/p>\n\n\n\n

\ud83c\udf0d Transport by own means: there is the possibility to organize transport without the use of third party carriers for FCA, DAP, DPU and DDP;<\/p>\n\n\n\n

\ud83c\udf0d Clearer structure: the costs to be borne by the parties are listed in detail in the new Articles A9\/B9.<\/p>\n\n\n\n

KEY ADVANTAGES OF INCOTERMS\u00ae 2020<\/strong><\/h1>\n\n\n\n

Incoterms\u00ae 2020 offer:<\/p>\n\n\n\n

\ud83d\udccdGreater Transparency: they clearly define roles and responsibilities;<\/p>\n\n\n\n

\ud83d\udccdRisk Reduction: they minimize disputes and misunderstandings;<\/p>\n\n\n\n

\ud83d\udccdCost Optimization: they give the possibility to better plan expenses.<\/p>\n\n\n\n

CONCLUSION<\/strong><\/h1>\n\n\n\n

Incoterms\u00ae<\/a> 2020 are a fundamental tool for anyone involved in international trade. Understanding them and applying them correctly simplifies transactions, improves collaboration between parties and minimizes risks and costs.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Incoterms\u00ae 2020 are standardized international trade rules by ICC, defining delivery terms, liability, and costs. They regulate responsibilities, risks, and expenses, ensuring clarity and efficiency in global transactions. Key updates improve transparency, insurance coverage, and cost allocation.<\/p>\n","protected":false},"author":2,"featured_media":2568,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[89,87,92,70,80,82,68,85,79,86,93,67,65,74,90,75,71,76,72,91],"class_list":["post-1378","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-waternext-magazine","tag-bill-of-lading","tag-cfr","tag-cost-optimization","tag-costs","tag-cpt","tag-dap","tag-delivery-terms","tag-fas","tag-fca","tag-fob","tag-global-transactions","tag-icc","tag-incoterms","tag-insurance","tag-insurance-coverage","tag-multimodal-transport","tag-risks","tag-sea-transport","tag-shipping-process","tag-trasparency"],"_links":{"self":[{"href":"https:\/\/www.waternext.it\/new\/wp-json\/wp\/v2\/posts\/1378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.waternext.it\/new\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.waternext.it\/new\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.waternext.it\/new\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.waternext.it\/new\/wp-json\/wp\/v2\/comments?post=1378"}],"version-history":[{"count":8,"href":"https:\/\/www.waternext.it\/new\/wp-json\/wp\/v2\/posts\/1378\/revisions"}],"predecessor-version":[{"id":3933,"href":"https:\/\/www.waternext.it\/new\/wp-json\/wp\/v2\/posts\/1378\/revisions\/3933"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.waternext.it\/new\/wp-json\/wp\/v2\/media\/2568"}],"wp:attachment":[{"href":"https:\/\/www.waternext.it\/new\/wp-json\/wp\/v2\/media?parent=1378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.waternext.it\/new\/wp-json\/wp\/v2\/categories?post=1378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.waternext.it\/new\/wp-json\/wp\/v2\/tags?post=1378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}