Containers and shipping
The Incoterms® 2020 Rules: what to know
Independent site, not a government service. General information, not customs advice.
The US trade administration dates the edition from 1 January 2020. Use the tool to try a rule against your own invoice, and read below what the summaries say.
Does your invoice price cover freight and insurance?
Starting customs value
₹5,05,000
| Freight added | No, in the price |
| Insurance added | ₹5,000 |
| What to look at: Carriage is in the price. Add the insurance. | |
Our summary of how each rule splits costs, for customs value only. Check your contract.
The US International Trade Administration describes the Incoterms® 2020 Rules as eleven rules issued by the International Chamber of Commerce, grouped by mode of transport: seven for any mode and four for sea and inland waterway. The change it names is that DPU, Delivered at Place Unloaded, replaces the old DAT, with an added requirement that the seller unload the goods from the arriving transport. HMRC, in its UK guidance, says the same about DPU and DAT. Older editions have not expired: the US page says ICC recommends the 2020 edition from 1 January 2020, but that contracts using any edition are valid if all parties agree and identify it correctly on the export documents. HMRC adds that the terms are regularly updated and that the current information should be checked, so outdated versions are not used. For a contract this means naming the rule, the place and the edition. We read those summaries, not the ICC publication, which is sold and is copyright.
Tariff and rules read by Radif Partners · Editorial policy · Method and sources
The two groups
| Group | Rules |
|---|---|
| Any mode of transport | EXW, FCA, CPT, CIP, DAP, DPU, DDP |
| Sea and inland waterway | FAS, FOB, CFR, CIF |
The place each rule asks you to name
| What to insert | Rules |
|---|---|
| Place of delivery | EXW, FCA |
| Port of loading | FAS, FOB |
| Port of destination | CFR, CIF |
| Place of destination | CPT, CIP, DAP, DPU, DDP |
For customs in India, what matters is the actual cost carried to the place of importation, which the customs value page sets out.
What the rules leave out
According to the US trade administration page, they don't cover all conditions of a sale, nor do they identify the goods or the price, the method or timing of payment, or the moment of passing of title. The contract should therefore handle these points. In India, the rights of suit attached to a bill of lading come from a separate law: see bill of lading.
About our text
The ICC holds the copyright, as noted in its policy. This site is not linked to ICC, and we offer no training or certificate on the rules. The HMRC guidance is a UK document and does not speak for Indian customs. The tool above is set to CPT at first, and you can switch to any rule to see how a price may change your starting customs value. For the overview of all eleven, see the main page.