2020 Incoterms® Quick Reference
Common international trade terms used in export documentation and contracts.
Disclaimer: For information purposes only. Always consult the official ICC (International Chamber of Commerce) Incoterms® 2020 rules for complete terms and conditions. This guide covers 4 of the 11 Incoterms most commonly used by NZ exporters.
Responsibility Spectrum
EXW (Ex Works)
Buyer takes full responsibility from seller's warehouse.
Seller Responsible For:
- • Make goods available at premises
- • Provide commercial invoice
Buyer Responsible For:
- • All costs and risks from seller's location
- • Export clearance
- • Loading, transport, and insurance
- • Import clearance and duties
Risk transfers: Seller's premises
FOB (Free On Board)
Seller clears export and loads on vessel; buyer pays freight.
Seller Responsible For:
- • Export clearance
- • Deliver and load goods on vessel
- • Pay loading costs
Buyer Responsible For:
- • Freight from port of shipment
- • Marine insurance
- • Unloading costs
- • Import clearance and duties
Risk transfers: On board vessel (port of shipment)
CIF (Cost, Insurance, Freight)
Seller pays freight and insurance to destination port.
Seller Responsible For:
- • Export clearance
- • Freight to destination port
- • Minimum marine insurance (110% CIF value)
- • Loading costs at origin
Buyer Responsible For:
- • Unloading costs at destination
- • Import clearance and duties
- • Transport from port to final destination
Risk transfers: On board vessel (port of shipment)
DDP (Delivered Duty Paid)
Seller takes maximum responsibility, delivering to buyer's door duty-paid.
Seller Responsible For:
- • All transport to buyer's premises
- • Export clearance
- • Import clearance and duties
- • All insurance and freight
Buyer Responsible For:
- • Unloading at final destination
- • Receive goods
Risk transfers: Buyer's premises (destination)
Unsure Which Term to Use?
Choosing the right Incoterm affects your documentation requirements, costs, and risk exposure. Our trade advisory team can guide you based on your specific shipment and buyer relationship.
Contact Our Trade Advisory Team
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC).
For the complete set of 11 Incoterms 2020 rules, visit
iccwbo.org