glossary
Incoterms
In principle, the Incoterms regulate the rights and obligations of buyers and sellers relating to the delivery of goods. They provide a clear definition of mutual contractual obligations, reducing misunderstandings and costly disputes.
The new set of rules 2020 offers, among other things, a more detailed introduction as well as new graphics and simplifies the comparison of individual clauses through a horizontal overview and a tabular sorting. The clause DAT (Delivered Terminal) was changed to DPU (Delivered Named Place Unloaded), allowing any any agreed place to be the destination in the future. In addition, the Incoterms2020 take into account the changed market needs, the current business practice and are even more tailored to the needs of medium-sized companies.
It should be noted that legal issues such as the conclusion of a contract, the transfer of ownership, payment processing or the legal consequences of breaches of contract are NOT regulated in the Incoterms. The provisions of the purchase contract or the law on which the contract is based are decisive for this.
Clauses for all modes of transport
EXW / Ex Works = Ex Works
FCA / Free Carrier = Free Carrier
CPT / Carriage Paid To
CIP / Carriage and Insurance Paid To
DAP / Delivered At Place = Delivered named place
DPU / Delivered At Place Unloaded(NEW)
DDP / Delivered Duty Paid = Delivered Duty Paid
Clauses for sea & inland waterway transport
FAS / Free Alongside Ship
FOB / Free On Board = Free On Board
CFR / Cost and Freight = Cost and Freight
CIF / Cost Insurance and Freight = Cost, Insurance and Freight
This brief overview of the new ICC rules serves as a first overview of the Incoterms®2020 clauses and their definition. In order to work in detail with the Incoterms®2020 and to integrate them into contracts, the entire set of rules should always be included and used..
Further information can be found on the ICC website: https://www.incoterms2020.de