Mastering Incoterms 2020 for cross-border delivery teams

Incoterms define the responsibilities of sellers and buyers. They indicate the exact point when responsibility for goods transfers, who handles customs clearances, and how transportation costs are distributed. For example, under terms like FOB (Free On Board), the seller’s job is complete once the goods are loaded onto the ship, while under DDP (Delivered Duty Paid), the seller handles nearly all aspects, including paying import duties. Each term ensures both parties know their obligations upfront.