In international trade, it's essential that companies use a common language to avoid confusion. This is where Incoterms come in, an acronym for "International Commercial Terms". These codified rules define the responsibilities of each party (seller, buyer, carrier) in the delivery of goods, both nationally and internationally. They take into account elements such as customs formalities, insurance and General Sales Conditions (GSC), and are regularly updated by the International Chamber of Commerce (ICC).

Incoterms were last revised in 2020 and are applicable until 2029. However, adjustments and clarifications may have been made since that update. Here's an overview of the 11 Incoterms in 2025, including specific rules and additional explanations to fully understand the responsibilities of each player.

The 11 Incoterms in 2025

Incoterms are divided into two main groups: those relating to multimodal transport and those relating to maritime transport. Here are the main rules you need to know.

The 7 multimodal Incoterms

Multimodal transport involves the use of several means of transport to move goods from point A to point B. For example, a product shipped by truck, then transported by sea and finally delivered to its destination by train.

1. EXW (Ex Works) or "ex works
The most basic Incoterm, where the buyer takes charge of all the formalities involved in collecting, transporting and delivering the goods. The seller simply prepares the order.

2. FCA (Free Carrier)
The seller organizes transport to a carrier designated by the buyer. The latter takes charge of formalities and transport beyond this point.

3. CPT (Carriage Paid To)
The seller pays the cost of transport to an agreed destination, but the risk is transferred to the buyer as soon as the goods are handed over to the carrier.

4. CIP (Carriage and Insurance Paid to)
The seller pays the freight and insurance costs. The buyer assumes the risk once the goods have been handed over to the carrier.

5. DAP (Delivered at Place) or "rendered at destination".
The seller assumes all costs and risks up to the destination, but the buyer takes care of unloading and customs formalities on arrival.

6. DPU (Delivered at Place Unloaded)
The seller is also responsible for unloading at destination, with the buyer handling customs formalities.

7. DDP (Delivered Duty Paid)
This Incoterm requires the seller to take charge of all stages up to delivery of the goods, including customs formalities and unloading.

The 4 maritime Incoterms

These Incoterms are specific to maritime shipping. They concern the carriage of goods in bulk or conventionally, often by ship.

1. FAS (Free Alongside Ship)
The seller must deliver the goods alongside the ship, after which the risks and costs are transferred to the buyer.

2. FOB (Free On Board)
The seller delivers the goods on board the ship. From this point onwards, all risks are borne by the buyer.

3. CPT (Carriage Paid To) or "port payé jusqu'à"
The seller pays the costs up to the intended destination, but the risks are transferred to the buyer as soon as the goods are handed over to the carrier.

4. CIF (Cost, Insurance and Freight)
The seller pays the cost of transport and insurance to destination, but is not responsible for risks after the goods have been loaded on board the vessel.

Incoterms changes in 2025

Although no major revision of Incoterms is expected before 2029, some clarifications and updates may be introduced in 2025. These adjustments are designed to enhance understanding and make contract management more fluid. Among the trends observed :

• Clarification of insurance coverage obligations: The distinction between CIP and CIF is now clearer. The CIP requires all-risk coverage, while the CIF is less strict in terms of insurance, contenting itself with standard coverage (10% of the commercial value).

• Replacement of DAT by DPU: The Incoterm DAT has been replaced by DPU, extending the choice of delivery location beyond traditional areas such as port or airport terminals.

• A better explanation of responsibilities: Incoterms 2020 has led to a better understanding of the responsibilities of each party. The rules have been detailed to avoid any ambiguity, and this could be reinforced in 2025.

• Updates to explanations of customs formalities management: International transport rules are increasingly detailed, with a more precise explanation of customs responsibilities, particularly for goods transiting several countries or jurisdictions.

Things to remember

Incoterms are essential to ensure a clear transaction between seller and buyer in international trade. The 2020 update has already brought many improvements in terms of transparency and simplification of logistics processes. The changes expected in 2025 could mainly concern additional clarifications to avoid confusion.

In conclusion, Incoterms will continue to play a key role in world trade, offering a framework adapted to changes in international trade, while remaining true to its fundamental principles of clarifying responsibilities.