{"id":2707,"date":"2025-04-03T18:39:59","date_gmt":"2025-04-03T15:39:59","guid":{"rendered":"https:\/\/danil-hristich.com\/?p=2707"},"modified":"2026-05-28T10:58:13","modified_gmt":"2026-05-28T07:58:13","slug":"incoterms-2020","status":"publish","type":"post","link":"https:\/\/danil-hristich.com\/en\/incoterms-2020\/","title":{"rendered":"Incoterms 2020"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">\u0421\u043e\u0434\u0435\u0440\u0436\u0430\u043d\u0438\u0435<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#What_are_Incoterms_2020\" title=\"What are Incoterms 2020\">What are Incoterms 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#Types_of_delivery_under_Incoterms_2020\" title=\"Types of delivery under Incoterms 2020\">Types of delivery under Incoterms 2020<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#EXW_Incoterms_2020\" title=\"EXW Incoterms 2020\">EXW Incoterms 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#FCA_Incoterms_2020\" title=\"FCA Incoterms 2020\">FCA Incoterms 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#CPT_Incoterms_2020\" title=\"CPT Incoterms 2020\">CPT Incoterms 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#CIP_Incoterms_2020\" title=\"CIP Incoterms 2020\">CIP Incoterms 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#DAP_Incoterms_2020\" title=\"DAP Incoterms 2020\">DAP Incoterms 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#DPU_Incoterms_2020\" title=\"DPU Incoterms 2020\">DPU Incoterms 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#DDP_Incoterms_2020\" title=\"DDP Incoterms 2020\">DDP Incoterms 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#FAS_Incoterms_2020\" title=\"FAS Incoterms 2020\">FAS Incoterms 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#FOB_Incoterms_2020\" title=\"FOB Incoterms 2020\">FOB Incoterms 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#CFR_Incoterms_2020\" title=\"CFR Incoterms 2020\">CFR Incoterms 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#CIF_Incoterms_2020\" title=\"CIF Incoterms 2020\">CIF Incoterms 2020<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#Differences_between_Incoterms_2010_and_2020\" title=\"Differences between Incoterms 2010 and 2020\">Differences between Incoterms 2010 and 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#How_to_Properly_Apply_Incoterms_2020\" title=\"How to Properly Apply Incoterms 2020\">How to Properly Apply Incoterms 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/danil-hristich.com\/en\/incoterms-2020\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Incoterms 2020 are international rules that define the terms of delivery of goods in international trade. The abbreviation derives from the English phrase <em>International Commercial Terms<\/em>. The Incoterms 2020 rules were developed by the International Chamber of Commerce (ICC) and entered into force on 1 January 2020, replacing the previous edition \u2013 Incoterms 2010.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Incoterms_2020\"><\/span>What are Incoterms 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Incoterms 2020 serve as a kind of international trade language, helping the parties to international contracts clearly understand their obligations, rights, and risks in the context of sale and purchase transactions. The Incoterms 2020 delivery terms define the point of transfer of goods, the allocation of costs, and the division of risks between the parties to a cross-border contract.<\/p>\n\n\n\n<p>The official text of Incoterms 2020 contains a detailed description of 11 terms, each of which is represented by a three-letter abbreviation and defines:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The responsibilities of the seller and buyer regarding transport and insurance<\/li>\n\n\n\n<li>The point at which the risk of damage or loss of goods passes from seller to buyer<\/li>\n\n\n\n<li>The allocation of costs between the parties<\/li>\n\n\n\n<li>Responsibilities for export and import customs clearance<\/li>\n<\/ul>\n\n\n\n<p>Incoterms 2020 regulate only the relationship between seller and buyer under a sale contract, and do not apply to relations with carriers, insurers, or banks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_delivery_under_Incoterms_2020\"><\/span>Types of delivery under Incoterms 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Incoterms 2020 terms are divided into two main categories:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>Rules for any mode of transport (universal):\n<ul class=\"wp-block-list\">\n<li><strong>EXW (Ex Works)<\/strong> \u2013 Ex Works<\/li>\n\n\n\n<li><strong>FCA (Free Carrier)<\/strong> \u2013 Free Carrier<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/danil-hristich.com\/en\/what-is-cpt-or-carriage-paid-to\/\">CPT (Carriage Paid To)<\/a><\/strong> \u2013 Carriage Paid To<\/li>\n\n\n\n<li><strong>CIP (Carriage and Insurance Paid To)<\/strong> \u2013 Carriage and Insurance Paid To<\/li>\n\n\n\n<li><strong>DAP (Delivered at Place)<\/strong> \u2013 Delivered at Place<\/li>\n\n\n\n<li><strong>DPU (Delivered at Place Unloaded)<\/strong> \u2013 Delivered at Place Unloaded<\/li>\n\n\n\n<li><strong>DDP (Delivered Duty Paid)<\/strong> \u2013 Delivered Duty Paid<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Rules for sea and inland waterway transport:\n<ul class=\"wp-block-list\">\n<li><strong>FAS (Free Alongside Ship)<\/strong> \u2013 Free Alongside Ship<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/danil-hristich.com\/en\/fob-free-on-board-responsibilities-of-the-parties-and-risk-transfer\/\">FOB (Free on Board)<\/a><\/strong> \u2013 Free on Board<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/danil-hristich.com\/en\/cif-and-cfr-c-f-obligations-of-the-parties-and-transfer-of-risks\/\">CFR (Cost and Freight)<\/a><\/strong> \u2013 Cost and Freight<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/danil-hristich.com\/en\/cif-and-cfr-c-f-obligations-of-the-parties-and-transfer-of-risks\/\">CIF (Cost, Insurance and Freight)<\/a><\/strong> \u2013 Cost, Insurance and Freight<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<p>Let us examine each of the Incoterms 2020 in more detail.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"EXW_Incoterms_2020\"><\/span>EXW Incoterms 2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>EXW (Ex Works)<\/strong> \u2014 under this term, the seller fulfils their delivery obligation when the goods are made available to the buyer at the seller\u2019s premises or another named place (e.g. factory, warehouse, etc.).<\/p>\n\n\n\n<p><strong>Key features of EXW Incoterms 2020:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Minimum obligations for the seller<\/li>\n\n\n\n<li>The buyer bears all costs and risks associated with loading the goods and transporting them from the seller\u2019s premises to the destination<\/li>\n\n\n\n<li>The buyer is responsible for both export and import customs formalities<\/li>\n\n\n\n<li>Not recommended for international trade due to the complexity of export clearance for the buyer<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FCA_Incoterms_2020\"><\/span>FCA Incoterms 2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>FCA (Free Carrier)<\/strong> \u2014 the seller delivers the goods to the carrier or another person nominated by the buyer at the seller\u2019s premises or another agreed location.<\/p>\n\n\n\n<p><strong>Key features of FCA Incoterms 2020:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The seller is responsible for export customs clearance<\/li>\n\n\n\n<li>Risk transfers from seller to buyer at the point the goods are handed over to the carrier<\/li>\n\n\n\n<li>The buyer arranges and pays for the main carriage<\/li>\n\n\n\n<li>The 2020 edition allows the parties to agree that the buyer will instruct the carrier to issue a bill of lading with an \u201con board\u201d notation to the seller<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CPT_Incoterms_2020\"><\/span>CPT Incoterms 2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/danil-hristich.com\/en\/what-is-cpt-or-carriage-paid-to\/\">CPT (Carriage Paid To)<\/a><\/strong> \u2014 the seller hands the goods over to a carrier or another person nominated by the seller at an agreed place and pays the cost of carriage to the named destination.<\/p>\n\n\n\n<p><strong>Key features of CPT Incoterms 2020:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The seller pays for transport to the agreed destination<\/li>\n\n\n\n<li>Risk transfers from seller to buyer when the goods are handed over to the first carrier<\/li>\n\n\n\n<li>The seller is responsible for export customs clearance<\/li>\n\n\n\n<li>The buyer is responsible for import customs clearance<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CIP_Incoterms_2020\"><\/span>CIP Incoterms 2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>CIP (Carriage and Insurance Paid To)<\/strong> \u2014 the seller has the same obligations as under CPT, but must also obtain insurance cover for the benefit of the buyer.<\/p>\n\n\n\n<p><strong>Key aspects of CIP Incoterms 2020:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The seller pays for delivery to the agreed destination<\/li>\n\n\n\n<li>The seller must provide insurance cover<\/li>\n\n\n\n<li>Under the 2020 edition, the required level of insurance has been increased from minimum coverage to \u201cClause A\u201d (all risks) coverage<\/li>\n\n\n\n<li>Risk transfers to the buyer when the goods are handed over to the first carrier<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"DAP_Incoterms_2020\"><\/span>DAP Incoterms 2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>DAP (Delivered at Place)<\/strong> \u2014 the seller fulfils their obligation when the goods are placed at the disposal of the buyer on the arriving means of transport, ready for unloading at the named place of destination.<\/p>\n\n\n\n<p><strong>Key features of DAP Incoterms 2020:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The seller bears all risks associated with transporting the goods to the named destination<\/li>\n\n\n\n<li>The seller is responsible for export customs clearance and pays for transport to the agreed location<\/li>\n\n\n\n<li>The buyer is responsible for import customs clearance, as well as payment of duties and taxes<\/li>\n\n\n\n<li>The buyer arranges unloading of the goods<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/danil-hristich.com\/wp-content\/uploads\/2025\/04\/yahdi-yasya-0E7lNwu_bEQ-unsplash-1024x683.jpg\" alt=\"DAP Discharge\" class=\"wp-image-2696\" title=\"\" srcset=\"https:\/\/danil-hristich.com\/wp-content\/uploads\/2025\/04\/yahdi-yasya-0E7lNwu_bEQ-unsplash-1024x683.jpg 1024w, https:\/\/danil-hristich.com\/wp-content\/uploads\/2025\/04\/yahdi-yasya-0E7lNwu_bEQ-unsplash-900x600.jpg 900w, https:\/\/danil-hristich.com\/wp-content\/uploads\/2025\/04\/yahdi-yasya-0E7lNwu_bEQ-unsplash-1536x1024.jpg 1536w, https:\/\/danil-hristich.com\/wp-content\/uploads\/2025\/04\/yahdi-yasya-0E7lNwu_bEQ-unsplash-270x180.jpg 270w, https:\/\/danil-hristich.com\/wp-content\/uploads\/2025\/04\/yahdi-yasya-0E7lNwu_bEQ-unsplash-770x515.jpg 770w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"DPU_Incoterms_2020\"><\/span>DPU Incoterms 2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>DPU (Delivered at Place Unloaded)<\/strong> is a new term introduced in Incoterms 2020, replacing DAT (<em>Delivered at Terminal<\/em>) from the previous edition. The seller fulfils their delivery obligations when the goods are unloaded at the agreed place of destination.<\/p>\n\n\n\n<p><strong>Key features of DPU Incoterms 2020:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The seller is responsible for both delivery and unloading of the goods at the specified location<\/li>\n\n\n\n<li>The place of delivery can be any location, not just a terminal, as was the case under DAT<\/li>\n\n\n\n<li>The seller bears all risks until the goods are unloaded<\/li>\n\n\n\n<li>The seller handles export customs clearance, while the buyer is responsible for import formalities<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"DDP_Incoterms_2020\"><\/span>DDP Incoterms 2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>DDP (Delivered Duty Paid)<\/strong> \u2014 the seller fulfils their delivery obligations when the goods are placed at the disposal of the buyer, having cleared import formalities and being ready for unloading at the named destination.<\/p>\n\n\n\n<p><strong>Key characteristics of DDP Incoterms 2020:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Maximum obligations for the seller<\/li>\n\n\n\n<li>The seller bears all risks and costs until the goods arrive at the named place of destination<\/li>\n\n\n\n<li>The seller is responsible for both export and import customs clearance<\/li>\n\n\n\n<li>The seller pays all import duties, taxes, and other official charges<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAS_Incoterms_2020\"><\/span>FAS Incoterms 2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>FAS (Free Alongside Ship)<\/strong> \u2014 the seller fulfils their delivery obligations when the goods are placed alongside the vessel (e.g. on a quay or barge) at the named port of shipment.<\/p>\n\n\n\n<p><strong>Key points of FAS Incoterms 2020:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Applies only to sea and inland waterway transport<\/li>\n\n\n\n<li>Risk passes from seller to buyer once the goods are placed alongside the ship<\/li>\n\n\n\n<li>The seller is responsible for export customs clearance<\/li>\n\n\n\n<li>The buyer arranges and pays for the main carriage<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FOB_Incoterms_2020\"><\/span>FOB Incoterms 2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/danil-hristich.com\/en\/fob-free-on-board-responsibilities-of-the-parties-and-risk-transfer\/\">FOB (Free on Board)<\/a><\/strong> \u2014 the seller fulfils their obligations when the goods have been loaded on board the vessel at the named port of shipment.<\/p>\n\n\n\n<p><strong>Main features of FOB Incoterms 2020:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Applies only to sea and inland waterway transport<\/li>\n\n\n\n<li>Risk passes from seller to buyer when the goods are on board the vessel<\/li>\n\n\n\n<li>The seller is responsible for export customs clearance<\/li>\n\n\n\n<li>The buyer arranges and pays for the main transport and insurance<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CFR_Incoterms_2020\"><\/span>CFR Incoterms 2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/danil-hristich.com\/en\/cif-and-cfr-c-f-obligations-of-the-parties-and-transfer-of-risks\/\">CFR (Cost and Freight)<\/a><\/strong> \u2014 the seller completes delivery when the goods have been loaded onto the vessel at the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination.<\/p>\n\n\n\n<p><strong>Key points of CFR Incoterms 2020:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Applies only to sea and inland waterway transport<\/li>\n\n\n\n<li>Risk passes from seller to buyer when the goods are on board the vessel at the port of shipment<\/li>\n\n\n\n<li>The seller pays for delivery to the port of destination<\/li>\n\n\n\n<li>The seller is responsible for export customs clearance<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CIF_Incoterms_2020\"><\/span>CIF Incoterms 2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/danil-hristich.com\/en\/cif-and-cfr-c-f-obligations-of-the-parties-and-transfer-of-risks\/\">CIF (Cost, Insurance and Freight)<\/a><\/strong> \u2014 the seller has the same obligations as under CFR, but must also obtain insurance against the buyer\u2019s risk of loss or damage to the goods during transit.<\/p>\n\n\n\n<p><strong>Key characteristics of CIF Incoterms 2020:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Applies only to sea and inland waterway transport<\/li>\n\n\n\n<li>Risk passes from seller to buyer at the port of shipment, when the goods are on board the vessel<\/li>\n\n\n\n<li>The seller pays for carriage to the port of destination<\/li>\n\n\n\n<li>The seller must obtain insurance with minimum cover<\/li>\n\n\n\n<li>The seller is responsible for export customs clearance<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Differences_between_Incoterms_2010_and_2020\"><\/span>Differences between Incoterms 2010 and 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The transition from Incoterms 2010 to Incoterms 2020 introduced several important changes that parties to international trade should be aware of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Replacement of DAT with DPU.<\/strong> The change expands the term\u2019s applicability, as unloading can now occur at any location, not just at a terminal.<\/li>\n\n\n\n<li><strong>Changes in insurance requirements for CIP.<\/strong> In the previous edition, CIP and CIF required minimum insurance coverage (under Institute Cargo Clauses \u201cC\u201d). In Incoterms 2020, <strong>CIP requires insurance under Clause \u201cA\u201d<\/strong> (all risks), while CIF still requires only minimum cover.<\/li>\n\n\n\n<li><strong>New option added to FCA<\/strong> regarding on-board bills of lading. The parties may now agree that the buyer instructs the carrier to issue a bill of lading with an on-board notation to the seller.<\/li>\n\n\n\n<li><strong>Inclusion of security-related costs<\/strong> in transportation and delivery obligations. Incoterms 2020 now explicitly allocate security responsibilities between the parties at each stage of transport.<\/li>\n\n\n\n<li><strong>More detailed explanations and examples<\/strong> have been included in the official text to help users better understand each term and apply them correctly.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/danil-hristich.com\/wp-content\/uploads\/2025\/04\/bernd-dittrich-P_-S57fiFwE-unsplash-1024x683.jpg\" alt=\"Incoterms 2020 2010 difference\" class=\"wp-image-2699\" title=\"\" srcset=\"https:\/\/danil-hristich.com\/wp-content\/uploads\/2025\/04\/bernd-dittrich-P_-S57fiFwE-unsplash-1024x683.jpg 1024w, https:\/\/danil-hristich.com\/wp-content\/uploads\/2025\/04\/bernd-dittrich-P_-S57fiFwE-unsplash-900x600.jpg 900w, https:\/\/danil-hristich.com\/wp-content\/uploads\/2025\/04\/bernd-dittrich-P_-S57fiFwE-unsplash-1536x1024.jpg 1536w, https:\/\/danil-hristich.com\/wp-content\/uploads\/2025\/04\/bernd-dittrich-P_-S57fiFwE-unsplash-270x180.jpg 270w, https:\/\/danil-hristich.com\/wp-content\/uploads\/2025\/04\/bernd-dittrich-P_-S57fiFwE-unsplash-770x515.jpg 770w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Properly_Apply_Incoterms_2020\"><\/span>How to Properly Apply Incoterms 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To ensure effective use of Incoterms 2020 delivery terms, it is recommended to follow these guidelines:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Clearly specify the chosen Incoterms 2020 term in the contract, for example: <em>&#8220;FOB Odesa, Ukraine, Incoterms 2020&#8221;<\/em> or <em>&#8220;DAP Marszalkowska 115, Warsaw, Poland, Incoterms 2020&#8221;<\/em>.<\/li>\n\n\n\n<li>Precisely indicate the place of delivery \u2014 this is especially important for terms such as <strong>EXW<\/strong>, <strong>FCA<\/strong>, <strong>DAP<\/strong>, <strong>DPU<\/strong>, and <strong>DDP<\/strong>, where the exact location is crucial.<\/li>\n\n\n\n<li>Bear in mind that Incoterms 2020 do <strong>not govern<\/strong> transfer of ownership of the goods, pricing, payment terms, breach of contract consequences, or force majeure provisions. These issues must be addressed separately in the sale and purchase agreement.<\/li>\n\n\n\n<li>Select the appropriate term based on the mode of transport. For example, <strong>FAS<\/strong>, <strong>FOB<\/strong>, <strong>CFR<\/strong>, and <strong>CIF<\/strong> are intended <strong>exclusively<\/strong> for sea and inland waterway transport.<\/li>\n\n\n\n<li>Consider the specifics of customs procedures in both the exporting and importing countries when choosing the delivery term. For Ukrainian exporters to the EU, it is often more advantageous to use <strong>FCA<\/strong> or <strong>DAP<\/strong>, as import formalities within the EU can be complex.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Incoterms 2020 are a key tool for regulating international trade and avoiding misunderstandings between the parties to a sale contract. When drafting cross-border agreements, it is advisable to refer to the official Incoterms 2020 publication issued by the International Chamber of Commerce to ensure correct and consistent application of these rules.<\/p>\n\n\n\n<p>If you require <strong>legal advice<\/strong> on applying Incoterms 2020 in international trade contracts, feel free to contact me via <a href=\"mailto:danil@danil-hristich.com\">email<\/a>, <a href=\"https:\/\/t.me\/danilhristich\" target=\"_blank\">Telegram <\/a>or <a href=\"https:\/\/wa.me\/380632956265\" target=\"_blank\" rel=\"noopener\">WhatsApp <\/a>\u2014 I will help you structure your transaction to maximise its commercial benefit and protect you against potential risks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Incoterms 2020 are international rules that define the terms of delivery of goods in international trade. The abbreviation derives from the English phrase International Commercial Terms. The Incoterms 2020 rules were developed by the International Chamber of Commerce (ICC) and entered into force on 1 January 2020, replacing the previous edition \u2013 Incoterms 2010. What<\/p>\n","protected":false},"author":1,"featured_media":2694,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"rank_math_title":"Incoterms 2020: International Delivery Terms Explained","rank_math_description":"Understand Incoterms 2020 rules, key updates, and delivery terms used in international trade. Learn how to apply them correctly in global contracts.","rank_math_focus_keyword":"Incoterms","footnotes":""},"categories":[1],"tags":[362,537,421],"class_list":{"0":"post-2707","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-main","8":"tag-incoterms","9":"tag-incoterms-2020-3","10":"tag-international-trade-3"},"_links":{"self":[{"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/posts\/2707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/comments?post=2707"}],"version-history":[{"count":4,"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/posts\/2707\/revisions"}],"predecessor-version":[{"id":3046,"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/posts\/2707\/revisions\/3046"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/media\/2694"}],"wp:attachment":[{"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/media?parent=2707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/categories?post=2707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/tags?post=2707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}