Mastering Incoterms 2020
Incoterms 2020
Global Trade Responsibilities Explained
Understanding Incoterms 2020
The Incoterms 2020 are a set of internationally recognized rules that define the roles of buyers and sellers in global trade.
Published by the International Chamber of Commerce (ICC), they simplify international transactions by clarifying who is responsible for shipping, insurance, and customs processes.
At Bernet Bitumen, we use Incoterms 2020 as a foundation for transparent and fair global trade practices.
Key Changes in Incoterms 2020
The 2020 revision introduced several updates compared to previous versions.
Here are some of the key points:
- DAT replaced by DPU (Delivered at Place Unloaded) – delivery now includes unloading at destination.
- Insurance requirements clarified under CIF and CIP.
- Security obligations added for both parties.
- Increased flexibility for transport using the buyer’s or seller’s own means.
Common Incoterms Used in Bitumen Trade
FOB – Free on Board
The seller is responsible for loading cargo onto the buyer’s nominated vessel. Risk transfers once the goods are on board.
CIF – Cost, Insurance & Freight
A widely used Incoterm for bitumen exports. The seller covers cost, freight, and insurance to the destination port.
CFR – Cost & Freight
Similar to CIF but without the insurance component. The buyer arranges coverage independently.
DAP – Delivered at Place
The seller delivers the goods to a named place, ready for unloading. The buyer handles import customs clearance.
EXW – Ex Works
The buyer collects goods directly from the seller’s premises, assuming all transport responsibilities and risks.
Choosing the Right Incoterm
Selecting the correct Incoterm depends on the buyer’s logistics capability, risk tolerance, and import regulations.
Our export team helps clients choose the most efficient and compliant term for each transaction.
Building Trust Through Trade Clarity
By applying Incoterms 2020, Bernet Bitumen ensures mutual understanding and predictable trade processes with clients worldwide.
Clear terms reduce disputes, increase efficiency, and build long-term partnerships.