Pre-contract checklist to choose and document the right Incoterms® 2020 rule for export and import.
Incoterms · Reading time: 8 min read · Updated: 2026-07-11
A practical checklist covering mode, control, insurance, duties, documents, and contract wording.
Incoterms Selection Checklist is a core topic in international trade practice. A practical checklist covering mode, control, insurance, duties, documents, and contract wording.
Incoterms Selection Checklist 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 Selection Checklist in these situations:
Wrong Incoterms create hidden freight, insurance, and duty costs. Run this checklist before every firm offer.
1) Mode → 2) Who books main carriage → 3) Who insures → 4) Who clears import → 5) Write rule + place + 2020.
Sales → Pricing → Legal wording → Operations handoff → Document check → Shipment.
| Need | Prefer |
|---|---|
| Buyer freight control | FOB/FCA |
| Seller all-in to port | CIF/CFR |
| Door + duties | DDP |
Use Trade31 FOB/CIF/DDP calculators; monitor lane risk on TradeVik; draft RFQ replies in Tradezzo.
ICC Incoterms® 2020 · Trade31 Incoterms overview
A practical checklist covering mode, control, insurance, duties, documents, and contract wording.
Scenario
Exporter almost signed CIF without insurance upgrade; checklist flagged ICC (A) requirement from buyer LOI.
Example — Incoterms Selection Checklist 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 Selection Checklist 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.
Attach this checklist to every quotation SOP.
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 DDP delivered duty paid price including duty, VAT, and local charges. — enterprise trade guide with workflow, examples, FAQ, and related tools.
Estimate total import landed cost: CIF + duty + VAT + destination charges. Runs locally. — enterprise trade guide with workflow, examples, FAQ, and related tool
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…
Step-by-step checklist for invoice, packing list, B/L, CO, and customs docs. — enterprise trade guide with workflow, examples, FAQ, and related tools.
Field-by-field L/C vs invoice and B/L consistency checklist. — enterprise trade guide with workflow, examples, FAQ, and related tools.