Incoterms rules allocate tasks, costs and risk at defined points. They do not replace a sales contract or determine ownership of goods.
Start with the facts
Start with the physical route. Identify where the seller can realistically deliver and where the buyer can receive. The named place matters as much as the three-letter rule.
Build the operating plan
For containerised cargo, consider the point at which the cargo is handed to a carrier. A rule chosen merely because it sounds familiar can misalign risk and documentary obligations.
Validate the handoffs
Map export clearance, main carriage, insurance, import clearance and unloading in one responsibility table. Then ensure the purchase order, invoice, transport instructions and insurance arrangement all describe the same transaction.
Close the loop
Review the selected rule with qualified legal and logistics advisers for the applicable transaction. Incoterms® is a registered trademark of ICC.
This guide is general information. Requirements and commercial conditions vary by jurisdiction, product and date. Confirm a live transaction with the relevant licensed professionals.
Shipment readiness checklist →
Landed-cost planner →
The customs desk →