Question 1

What are the 11 Incoterms 2020 rules?

Accepted Answer

Seven for any mode — EXW, FCA, CPT, CIP, DAP, DPU, DDP — and four for sea/inland waterway only — FAS, FOB, CFR, CIF. They define the division of risk and cost between buyer and seller, and are published by the ICC.

Question 2

What changed in Incoterms 2020 vs 2010?

Accepted Answer

DAT was renamed DPU (Delivered At Place Unloaded) and is now the only rule obligating the seller to unload; an FCA option was added so a buyer can obtain an on-board bill of lading; and CIP insurance was raised to Institute Cargo Clauses (A).

Question 3

What is the difference between FOB and CIF?

Accepted Answer

Both are sea-only terms where risk transfers to you when the goods are loaded on board. FOB has the buyer pay the main ocean freight; CIF has the seller pay freight and minimum insurance to the destination port. In neither does the seller carry the transit risk.

Question 4

What is the difference between FOB and EXW?

Accepted Answer

Under EXW the seller only makes the goods available at their premises and you handle all inland China transport, export formalities, freight and import. Under FOB the seller loads the goods on board the vessel at the named shipment port, and you take over for the international freight and import — much less coordination on you.

Question 5

Is DAP the same as DDP?

Accepted Answer

No. DAP delivers to a named place but import duty, taxes and import clearance remain on the buyer. DDP adds import duty, taxes and clearance onto the seller — the most hands-off for you, and the term needing a real licensed broker in your market.

Question 6

What is DPU?

Accepted Answer

DPU — Delivered At Place Unloaded — is the renamed DAT. The seller must deliver to a named place and unload. It is the only Incoterm that obligates the seller to unload.

Question 7

Is DDP right for a first-time bag importer?

Accepted Answer

Often yes — it bundles freight, duty, taxes and import clearance so you receive goods at your door with minimal logistics work. The trade-offs are a higher bundled price, less freight control, and the need for a licensed broker on your side so “DDP” is real.

Question 8

Which Incoterm should I use to import bags from China?

Accepted Answer

Most buyers default to FOB Xiamen/Shenzhen for control and cost; first-time or low-volume buyers often prefer DDP for simplicity; experienced importers may use EXW. Confirm the named place/port, Incoterms 2020 edition, insurance and who clears import — in writing, before booking.

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