Incoterms are with us since 1936. In practice it turns out all too often that there is a lack of clarity about the rights and obligations.

Below you will find a short explanation of the Incoterms 2020.

So why use Incoterms® 2020?

IPP’s Logistics Manager for 10 years, Monique Feenstra, explains:

“There are several reasons why the use of Incoterms is advisable. Perhaps the most important reason for using the Incoterms is that they are the international standard rules, which, when used correctly, prevents misunderstandings and facilitates international trade! In addition, they are available in more than 30 languages, ensuring accessibility.

We (you – as our customer and IPP) agree on:

  • which party is responsible for carriage (transport of goods) and insurance of the goods.
  • which party is responsible for customs duties, cost of transport and the cost of insurance.
  • the point at which risk passes/delivery takes place.”

Worldwide the most used Incoterms are:

EXW – Ex Works (named place of delivery)
FCA – Free Carrier (named place of delivery)
CPT – Carriage Paid To (named place of destination)
CIP – Carriage and Insurance Paid to (named place of destination)
DPU – Delivered At Place Unloaded (named place of destination)
DAP – Delivered At Place (named place of destination)
DDP – Delivered Duty Paid (named place of destination)

Further INCOTERMS such as Free Alongside Ship (FAS), Free On Board (FOB), Cost and Freight (CFR), and Cost, Insurance and Freight (CIF) are only applicable where transport is by sea or inland waterway.

At IPP we usually offer FCA, DDP and DAP to our customers.

You can find more information about Incoterms here. Questions? Feel free to contact us!

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