Glossary of Incoterms® 2020 rules and related trade terms — EXW to DDP, risk, freight, and insurance.
Incoterms · Reading time: 5 min read · Updated: 2026-07-11
Quick definitions for the 11 rules and supporting vocabulary used in contracts and emails.
Incoterms Glossary is a core topic in international trade practice. Quick definitions for the 11 rules and supporting vocabulary used in contracts and emails.
Incoterms Glossary affects quote accuracy, document compliance, clearance speed, and payment security. Build these dimensions into your SOP.
| Area | Effect | Recommended action |
|---|---|---|
| Compliance | Wrong fields or terms trigger holds, amendments, or penalties | Pre-shipment review against latest rules and bank/buyer requirements |
| Cost | Hidden charges or unclear responsibility erodes margin | Model full cost with calculators before confirming quotes |
| Lead time | Inconsistent documents delay clearance and release | Cross-check invoice–PL–B/L with a checklist |
| Risk | Disputes over transfer points drive claims | Contract the place, Incoterms version, and evidence rules |
Apply this guide to Incoterms Glossary in these situations:
Use this glossary with definition articles for full scenarios and checklists.
Links to Trade Documents, Payment, and Logistics clusters on Trade31; TradeVik for market signals.
ICC Incoterms® 2020
Quick definitions for the 11 rules and supporting vocabulary used in contracts and emails.
Usage
In email: "Under FOB, risk transfers on board at the port of shipment."
Example — Incoterms Glossary with tool cross-check
After stating terms and fields on the PI, the team runs Trade31 calculators and templates pre-shipment to avoid L/C discrepancies and customs holds.
Lesson: Archive review outputs in the order file.
Example — Incoterms Glossary with tool cross-check
After stating terms and fields on the PI, the team runs Trade31 calculators and templates pre-shipment to avoid L/C discrepancies and customs holds.
Lesson: Archive review outputs in the order file.
Open the matching definition page for process detail.
Calculate FOB price from product cost, packaging, inland freight, and export charges. Runs locally in your browser. — enterprise trade guide with workflow, exam
Calculate CIF price from FOB, freight, and insurance rate. Local browser processing. — enterprise trade guide with workflow, examples, FAQ, and related tools.
Calculate EXW ex-works price from factory cost and margin. All processing stays in your browser. — enterprise trade guide with workflow, examples, FAQ, and rela
Calculate FCA (Free Carrier) price — all seller costs to handover at the named place. Local browser. — enterprise trade guide with workflow, examples, FAQ, and
Complete overview of Incoterms® 2020 — 11 rules, groups E/F/C/D, and how to choose terms for export and import. — enterprise trade guide with workflow, examples
FOB (Free on Board) under Incoterms® 2020 — meaning, use cases, risk transfer, pricing, documents, common mistakes, best practices, and 8 FAQs for ocean expo…
Learn CIF (Cost, Insurance and Freight) — seller duties, insurance minimums, risk transfer, and pricing for sea exports.
Learn DDP (Delivered Duty Paid) under Incoterms® 2020 — responsibilities, risk transfer, pricing, and FAQs. — enterprise trade guide with workflow, examples, FA
Compare FOB and CIF Incoterms — seller duties, risk transfer, insurance, and when to use each for export quotes. — enterprise trade guide with workflow, example
Enterprise-ready commercial invoice workbook with Invoice, Packing List, and Instruction sheets. Includes Seller/Buyer, Incoterms® 2020, HS codes, bank detai…
One-page decision guide for FOB, CIF, EXW, DDP and multimodal terms. — enterprise trade guide with workflow, examples, FAQ, and related tools.
Multi-line export quotation with unit price, MOQ, validity, and Incoterms column. — enterprise trade guide with workflow, examples, FAQ, and related tools.