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Incoterms Advisor
Describe your trade and get the right Incoterms 2020 rule, with a clear breakdown of who pays for what and exactly where risk passes from seller to buyer.
Frequently asked questions
- What are Incoterms?
- Incoterms (International Commercial Terms) are standard trade rules from the ICC that define who pays for and who bears the risk of each step of a shipment, from the seller's door to the buyer's. The current set is Incoterms 2020.
- What is the difference between FOB and CIF?
- Under FOB (Free On Board) the seller's responsibility and risk end once goods are loaded on the vessel; the buyer pays freight and insurance. Under CIF (Cost, Insurance and Freight) the seller pays freight and insurance to the destination port, but risk still transfers at loading.
- Which Incoterm should I use?
- It depends on how much of the journey you want to control and where you want risk to transfer. Describe your deal in the advisor and it recommends a rule with the trade-offs spelled out.