Incoterms® 2020 & Global Trade Master Guide
Master commercial freight terms, cost & risk division, customs compliance obligations, and import-export documentation to protect your global supply chain.
Incoterms® 2020 Rules & Responsibilities
Clear risk division, freight payment obligations, and insurance requirements for international commercial shipping contracts.
DDPAny ModeDelivered Duty Paid
The seller assumes maximum responsibility: managing origin export, international freight, import customs clearance, and all tariffs/duties directly to buyer’s door.
Maximum seller liability & risk transfer at destination
- Seller pays all ocean/air freight
- Seller covers import customs & taxes
- Seamless door-to-door execution
FOBSea OnlyFree On Board
The seller clears goods for export and loads them on board the vessel. Once loaded onto the ship, all freight costs, maritime risks, and import duties transfer to the buyer.
Risk transfers once cargo is loaded on board vessel
- Seller handles origin export clearance
- Buyer controls ocean carrier selection
- Ideal for maritime container shipments
CIFSea OnlyCost, Insurance & Freight
Seller pays ocean transport and minimum cargo insurance to the destination port. However, cargo risk transfers to the buyer as soon as goods are loaded on the vessel at origin.
Seller pays ocean freight & basic marine insurance
- Mandatory marine insurance included
- Buyer handles destination port clearance
- Standard for bulk commodities
EXWAny ModeEx Works (Factory Gate)
The buyer assumes maximum responsibility: picking up cargo directly from seller’s factory/warehouse and handling export clearance, international freight, and import taxes.
Risk transfers at seller’s factory floor
- Buyer controls 100% of supply chain
- Jovian coordinates factory collection
- Complete cost control for global buyers
FCAAny ModeFree Carrier
The seller clears cargo for export and delivers it to the carrier nominated by the buyer at a specified terminal, hub, or warehouse. Extremely versatile for containerized freight.
Risk transfers upon handover to designated carrier
- Preferred modern alternative to FOB
- Seller clears origin export paperwork
- Ideal for multimodal container shipments
DAPAny ModeDelivered At Place
The seller handles export clearance, multimodal freight, and delivery to the destination terminal/door. The buyer only manages local import customs clearance and duties.
Seller delivers to destination; Buyer clears customs
- Seller covers full transit logistics
- Buyer pays domestic import VAT/Tariffs
- High transparency for B2B trade
Essential International Trade Documents
Key paperwork required by US Customs & Border Protection (CBP) and global port authorities for zero-demurrage clearance.
Commercial Invoice (CI)
Contains itemized commercial value, seller/buyer details, HTS classifications, currency, and country of origin required for tariff assessment.
Bill of Lading (B/L / AWB)
Legal transport contract between shipper and carrier. Serves as receipt of cargo, document of title, and proof of vessel loading.
ISF 10+2 Security Filing
US CBP security filing required 24 hours prior to vessel loading at origin port to prevent strict $5,000 customs fines and vessel holds.
Certificate of Origin (COO)
Official verification of manufacturing nation required to claim preferential Free Trade Agreement (FTA) duty-free or reduced tariffs.
Frequently Asked Compliance Questions
Key regulatory guidance from licensed US customs brokers and international freight coordinators.
Need Guidance on Incoterms® for Your Next Contract?
Consult with our licensed customs brokers and freight coordinators today for risk-free logistics planning.