The current version is Incoterms 2020, which contains eleven terms. Seven of these apply to all modes of transport: EXW, FCA, CPT, CIP, DAP, DPU, and DDP. Four additional terms apply exclusively to maritime and inland waterway transport: FAS, FOB, CFR, and CIF.
In cross-border e-commerce, delivery processes are often complex because they involve multiple countries, modes of transport, and customs offices. Incoterms help clearly define responsibilities for shipping, customs clearance, and additional costs. This is particularly important for ensuring transparent processes and accurate cost calculations.
Under DAP (Delivered at Place), the seller delivers the goods to the agreed destination. Customs clearance, import duties, and any applicable import taxes are generally the responsibility of the buyer.
Under DDP (Delivered Duty Paid), the seller also handles import clearance and pays the associated import duties and taxes. In cross-border e-commerce, DDP can therefore enhance the customer experience, as import costs should not be charged to the recipient only upon delivery.
Yes. Although Incoterms primarily reflect B2B practices in sales contracts, their principles regarding the allocation of transportation costs, risks, and import obligations are also relevant to cross-border processes in B2C e-commerce.
In particular, the question of who is responsible for import duties and taxes affects the customer experience. If these costs are charged to the recipient only upon import or delivery, unexpected additional costs may arise. With DDP, however, the seller assumes responsibility for the relevant import obligations and duties. In addition, the applicable consumer, customs, and tax regulations of the respective market must always be taken into account.
The agreed-upon Incoterm is typically included in the shipping process as part of the order, invoice, or customs data and is transmitted via interfaces to the relevant systems and service providers. In particular, it defines the responsibilities of the seller and the buyer.
The specific customs clearance process is not determined by the Incoterm alone. Other factors, such as the destination country, the value of the goods, the type of goods, the importer, and the chosen customs clearance model, determine which customs procedure is applied and which documents are required. Missing or inconsistent information can lead to inquiries, delays in customs clearance, or the incorrect allocation of costs and duties.
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