• Farrow

Tracking

Search

Navigation

Incoterms 2020

Home Resources Incoterms 2020

Incoterms 2020, a widely-used terms of sale, are a set of 11 internationally recognized rules which define the responsibilities of sellers and buyers. Incoterms specifies who is responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities.

Download the most recent Incoterms Trade Terms below:

Farrow_IncoTerms_2020_Brochure_online_02_21

An Overview:

The Incoterms 2020 are a set of 11 individual rules issued by the International Chamber of Commerce (ICC) which define the responsibilities of sellers and buyers for the sale of goods in international transactions. Of primary importance is that each Incoterms rule clarifies the tasks, costs and risks to be borne by buyers and sellers in these transactions. Familiarizing yourself with Incoterms will help improve smoother transaction by clearly defining who is responsible for what and each step of the transaction.

The Incoterms 2020 rules are updated and grouped into two categories reflecting modes of transport. Of the 11 rules, there are seven for ANY mode(s) of transport and four for SEA or LAND or INLAND WATERWAY transport.

What Incoterms Do Not Cover  

As noted above, Incoterms are generally incorporated in the contract of sale, however they do not:

  • address all the conditions of a sale;
  • identify the goods being sold nor list the contract price;
  • reference the method nor timing of payment negotiated between the seller or buyer;
  • when title, or ownership of the goods, passes from the seller to the buyer;
  • specify which documents must be provided by the seller to the buyer to facilitate the customs clearance process at the buyer’s country; and
  • address liability for the failure to provide the goods in conformity with the contract of sale, delayed delivery, nor dispute resolution mechanisms.

For more information, click here.

Grow your business with our logistics solutions

Get the expert support and service needed to comply with shipping regulations, optimize your supply chain and more.

White Farrow icon

Your international trade experts are here to help.

Transporting your goods across borders? Get in touch and a Farrow representative will reach out shortly.

Request a Quote
White Farrow icon

Keep up with the latest trade news.

Stay informed with up-to-date information on US and Canadian customs and international trade topics.

Explore Our Resources