Incoterms 2026: what really matters

Updated April 2026 — Searching for "Incoterms 2026" is a natural reflex for any international trade professional. However, as of today, no new version of Incoterms has been published for 2026. The official reference in force remains Incoterms 2020, published by the International Chamber of Commerce (ICC). This version, which came into effect on 1 January 2020, remains the only one recognised by courts, customs authorities, and banking institutions worldwide.

The next revision is not expected before 2030, as the ICC has historically published a new edition every ten years (2000, 2010, 2020). This means that contracts signed in 2026 must explicitly reference "Incoterms 2020" to avoid any legal ambiguity.

Incoterms (International Commercial Terms) are a set of 11 standardised rules published by the ICC since 1936. Their purpose is to clearly define the allocation of obligations between buyer and seller in an international sales contract.

What Incoterms determine

Each Incoterm specifies three fundamental elements:

• ▸The point of risk transfer — the exact point where responsibility for the goods passes from seller to buyer. If the goods are damaged after this point, the buyer bears the loss.
• ▸Cost allocation — who pays for main carriage, insurance, customs fees, unloading, and other logistics costs.
• ▸Documentary obligations — who is responsible for obtaining export and import documents, bills of lading, and required certificates.

What Incoterms do not govern

It is crucial to understand the limits of these rules. Incoterms do not cover:

• ▸the transfer of ownership of the goods (governed by the sales contract and applicable law);
• ▸the consequences of contractual non-performance (delay, non-conformity, hidden defects);
• ▸the applicable law in the event of a dispute;
• ▸customs duties and taxes beyond their allocation between the parties;
• ▸the quality of the goods or their technical specifications.

These elements must be specified in the sales contract itself, independently of the chosen Incoterm.

Incoterms 2020 are divided into two families based on the mode of transport.

Multimodal rules (any mode of transport)

EXW — Ex Works: The seller makes the goods available at their premises. The buyer assumes all costs and risks from that point. This is the Incoterm that imposes the minimum obligations on the seller.

FCA — Free Carrier: The seller delivers the goods to the carrier nominated by the buyer, after export clearance. A major innovation of Incoterms 2020 allows the seller and buyer to agree that the carrier will issue an "on board" bill of lading in the seller's name, facilitating letter of credit payments.

CPT — Carriage Paid To: The seller pays for main carriage to the agreed destination, but risk transfers upon delivery to the first carrier.

CIP — Carriage and Insurance Paid To: Same as CPT, with the additional obligation for the seller to obtain insurance. Incoterms 2020 strengthened this requirement: the seller must now cover the goods at Institute Cargo Clauses Level A ("all risks" coverage), up from the minimum Level C previously.

DAP — Delivered at Place: The seller bears all costs and risks until the goods are made available at the agreed place, ready for unloading. Import clearance is the buyer's responsibility.

DPU — Delivered at Place Unloaded: Formerly DAT (Delivered at Terminal) in Incoterms 2010, renamed in 2020 to extend the scope beyond terminals alone. This is the only Incoterm where the seller is responsible for unloading the goods.

DDP — Delivered Duty Paid: The seller assumes all obligations, including import clearance and payment of customs duties. This is the Incoterm that imposes the maximum obligations on the seller.

Maritime and inland waterway rules only

FAS — Free Alongside Ship: The seller places the goods alongside the vessel at the port of shipment. Risk transfers at that precise moment.

FOB — Free on Board: The seller loads the goods on board the vessel nominated by the buyer. Risk transfers when the goods are on board.

CFR — Cost and Freight: The seller pays maritime freight to the port of destination, but risk transfers upon loading at the port of shipment.

CIF — Cost, Insurance and Freight: Same as CFR, with an additional insurance obligation for the seller. Unlike CIP, the required coverage level remains Clause C (minimum coverage), as CIF is traditionally used for bulk commodities.

Choosing an Incoterm should never be dictated by habit. It results from an analysis of three factors.

Mode of transport

If your shipment combines multiple modes (truck + ship + truck), maritime Incoterms (FAS, FOB, CFR, CIF) are unsuitable. In this case, prefer FCA over FOB, or CPT/CIP over CFR/CIF. The ICC itself recommends FCA for containerised transport, as the risk transfer point of FOB (on board the vessel) does not match the logistics reality of a container terminal handover.

Supply chain control

If you are a seller and wish to retain control over transport to destination, the C family (CPT, CIP, CFR, CIF) or D family (DAP, DPU, DDP) Incoterms are appropriate. If you prefer the buyer to organise transport, opt for EXW or FCA.

Capacity to handle customs formalities

DDP requires the seller to be able to complete import customs formalities in the destination country. For a French SME exporting to a third country, this can be complex and costly. In such cases, DAP is often more realistic: the seller transports to destination, but the buyer handles import.

Hayot Expertise advice: the right Incoterm is not chosen by habit. It is chosen based on the actual flow, mode of transport, and each party's capacity to handle formalities. A poor Incoterm choice can lead to unexpected cost overruns of 15 to 30% on the total cost of an import-export operation.

In a context of trade tensions and customs duty volatility, the ICC published in April 2025 a guidance note titled "Using the Incoterms 2020 Rules to Manage Tariff Risk in International Trade". This free document, downloadable from the ICC website, provides essential guidance for companies facing unpredictable changes in customs tariffs.

Key takeaways from the ICC note

The note emphasises that Incoterms do not directly address tariff risk — that is, the risk that a customs duty is modified between contract signature and delivery. However, the choice of Incoterm directly influences who bears this risk:

• ▸Under DDP, the seller bears import duties. If these duties increase between signature and delivery, the seller absorbs the increase, unless the contract provides otherwise.
• ▸Under DAP or EXW, the buyer bears the tariff risk, as they are responsible for import clearance.
• ▸Under FCA, tariff risk is shared: the seller handles export, the buyer handles import and associated duties.

Practical recommendations

The ICC recommends that companies accompany their chosen Incoterm with specific contractual clauses explicitly addressing tariff risk: price revision clauses in the event of customs duty changes, hardship clauses, or cost-sharing mechanisms. These clauses are particularly relevant in the current geopolitical context, marked by a proliferation of protectionist measures.

Confusing risk transfer with ownership transfer

This is the most common error. The Incoterm determines when the risk of loss or damage is transferred, but not when ownership of the goods changes hands. Transfer of ownership is governed by the sales contract and applicable national law. Goods can be at the buyer's risk while remaining the seller's property until full payment.

Using a maritime Incoterm for containerised transport

The ICC formally advises against using FOB, CFR, or CIF for containerised goods. In a container terminal, the goods are handed to the carrier well before being loaded on board the vessel. If a loss occurs between terminal handover and loading, the FOB seller remains responsible despite no longer having physical control of the goods. FCA is the recommended alternative.

Failing to specify the Incoterms version

Stating "CIF Marseille" in a contract is insufficient. The correct wording is: "CIF Marseille Incoterms 2020". Without this precision, in the event of a dispute, a court could apply an earlier version (Incoterms 2010 or even 2000), which would alter the allocation of obligations, particularly regarding insurance (CIP/CIF) or the point of risk transfer.

Neglecting the precision of the location

Each Incoterm must be followed by a precise location. "DAP Paris" is too vague. You should indicate "DAP Warehouse X, 12 Rue Y, 75001 Paris, France". The more precise the location, the less room for interpretation in the event of a dispute.

The formulation of the Incoterm clause in the sales contract must be rigorous. Here are the essential elements:

1. ▸The three-letter Incoterm (EXW, FCA, CPT, CIP, DAP, DPU, DDP, FAS, FOB, CFR, CIF);
2. ▸The specified place or port (full address or identified terminal);
3. ▸The reference "Incoterms 2020" to identify the applicable version;
4. ▸The competent jurisdiction in the event of a dispute;
5. ▸The applicable law governing the contract (which is distinct from the Incoterms).

Example of a correct clause: "Sale CIP Entrepôt Logisport, 45 rue de la Logistique, 69007 Lyon, France — Incoterms 2020. Applicable law: French law. Competent jurisdiction: Commercial Court of Lyon."

Discover our legal and tax support

As of 30 March 2026, Incoterms 2020 remain the official basis for all your international trade contracts. The real issue is not the date in the search query, but the correct application of these rules in your contracts. With the ICC's April 2025 guidance note on tariff risk management, companies now have complementary tools to secure their operations against customs duty instability.

📞 Need help checking your Incoterms clauses? Book an appointment with an expert

Do Incoterms 2026 exist?

No. As of today, the ICC has not published any "Incoterms 2026" version. The official version in force remains Incoterms 2020, which came into effect on 1 January 2020. The next revision is not expected until 2030, as the ICC follows a decennial update cycle. Any contract signed in 2026 should reference "Incoterms 2020".

What is the difference between CIP and CIF in 2026?

Both Incoterms require the seller to obtain insurance, but the level of coverage differs. Under CIP (multimodal), the seller must cover the goods at Institute Cargo Clauses Level A ("all risks" coverage). Under CIF (maritime only), the minimum required coverage is Clause C (major risks only). This distinction, introduced by Incoterms 2020, reflects the different nature of transported goods.

Which Incoterm should I choose for container exports?

The ICC recommends FCA (Free Carrier) over FOB for containerised goods. FCA transfers risk as soon as the goods are handed to the carrier in the terminal, which matches logistics reality. FOB only transfers risk once the goods are on board the vessel, creating a grey area of responsibility between terminal handover and loading.

How can I protect myself against customs duty fluctuations?

Incoterms do not directly address tariff risk. The ICC recommends adding specific clauses to the contract: price revision clauses in the event of customs duty changes, hardship clauses, or cost-sharing mechanisms. The choice of Incoterm also influences who bears the risk: DDP places it on the seller, DAP on the buyer.