Every 10 years, the International Chamber of Commerce (ICC) updates the Incoterms®. The latest version, the ICC Incoterms® 2020, came into effect on 1 January 2020. You may use earlier versions of the Incoterms®. As long as you refer to the correct version in your contracts and agreements.
What do you arrange with the ICC Incoterms®?
You can arrange the following matters with the ICC Incoterms®:
- who takes care of the transport and up to what point, who arranges the transport insurance, and who is responsible for any import and export permits;
- who pays the transport costs and additional costs, such as for loading and unloading, customs clearance, and packaging;
- when the risk of loss or damage to the goods passes from the seller to the buyer.
What is not covered by ICC Incoterms®?
The ICC Incoterms® only contain agreements about the transport of the goods. Price agreements, payment terms, guarantees, or handling in the event of non-performance are not covered by the ICC Incoterms®. The ICC Incoterms® do not regulate when ownership of the goods passes from the seller to the buyer either.
How to use ICC Incoterms®
Preferably record the agreed ICC Incoterms® in a purchase contract, quotation, or your general terms and conditions. Make sure your customer knows these conditions.
- Preferably work with the latest version of the ICC Incoterms®, currently Incoterms® 2020.
- Use an ICC Incoterms® rule that fits the transport. Some Incoterms® are only intended for transport by water.
11 ICC Incoterms®
Which ICC Incoterms® you need depends on the mode of transport and the wishes of you and the party you are doing business with. ICC Incoterms® 2020 has 11 delivery conditions (Incoterms® rules). 4 of them are especially designed for transport by water. The other 7 apply to all types of transport (multimodal transport). You can find more detailed information about the various Incoterms® and an explanatory video on our page Incoterms® international transport conditions.
Publication ICC Incoterms® 2020
Would you like to know exactly which obligations per ICC Incoterms® rule apply to the seller and which to the buyer? You can order the ICC Incoterms® 2020 publication from the International Chamber of Commerce (ICC). This version contains the rules in English.