A reference tool for training and self-assessment for import-export teams: a 6-topic quiz — 113 questions (Incoterms 2020, Incoterms 2010 as a standalone topic, UCP 600 / international payment terms, import-export operations, supply chain, cargo insurance for import-export); a detailed table of the 11 Incoterms 2010 rules with a table of changes versus Incoterms 2020; a visual diagram of the risk-transfer point under Incoterms 2010; and two comparison tables covering international payment methods and cargo insurance types. All figures and definitions are cross-checked against the original texts of the ICC (Incoterms® 2010, Incoterms® 2020, UCP 600, URC 522), the WCO, the Joint Cargo Committee (LMA/IUA — Institute Cargo Clauses) and the CMI (York-Antwerp Rules) — full sources are listed at the bottom of the page and directly under each question.
A self-assessment tool for import-export, procurement and logistics teams: pick a topic, answer each question, and the system instantly shows whether you were right or wrong along with an explanation and source. The "Incoterms 2020" topic focuses on the current rules (with a handful of quick comparison questions against 2010); the "Incoterms 2010 (standalone)" topic goes deep into the 2010 rules on their own — DAT, the history of replacing Incoterms 2000, the older CIP insurance level. Suitable as a periodic knowledge check or as onboarding material for new staff.
Incoterms 2010 (11 rules) remains fully valid for contracts that explicitly reference this version. Businesses still operating under framework agreements, standard contract templates, or sale terms that reference Incoterms 2010 should check the table below to understand each party's exact obligations before renegotiating or renewing a contract.
| Rule (2010) | Group | Mode of transport | Delivery point | Risk-transfer point | Who arranges main carriage | Insurance |
|---|---|---|---|---|---|---|
| EXW | Group E | Any mode | Seller's warehouse/premises | At the seller's warehouse | Buyer | Not required |
| FCA | Group F | Any mode | Seller's warehouse or a named place | When handed to the carrier nominated by the buyer | Buyer | Not required |
| CPT | Group C | Any mode | Handed to the first carrier | When handed to the first carrier | Seller pays freight | Not required |
| CIP | Group C | Any mode | Handed to the first carrier | When handed to the first carrier | Seller pays freight | Seller must insure, minimum Institute Cargo Clauses (C) — same as CIF, DIFFERENT from the 2020 version |
| DAT | Group D | Any mode | Named terminal at destination | At the destination terminal, after unloading | Seller | Not required |
| DAP | Group D | Any mode | Named place of destination | At the destination, ready for unloading — before unloading | Seller | Not required |
| DDP | Group D | Any mode | Named place of destination | At the destination, ready for unloading | Seller | Not required |
| FAS | Group F | Sea/inland waterway only | Alongside the vessel at the port of loading | When placed alongside the vessel | Buyer | Not required |
| FOB | Group F | Sea/inland waterway only | On board the vessel at the port of loading | When the goods are loaded on board | Buyer | Not required |
| CFR | Group C | Sea/inland waterway only | On board the vessel at the port of loading | When the goods are loaded on board | Seller pays freight | Not required |
| CIF | Group C | Sea/inland waterway only | On board the vessel at the port of loading | When the goods are loaded on board | Seller pays freight | Seller must insure, minimum Institute Cargo Clauses (C) |
The table below summarizes the main changes when the ICC moved from Incoterms 2010 to Incoterms 2020 — the most important points to check when reviewing older contracts that still reference the 2010 version.
| What changed | Incoterms 2010 | Incoterms 2020 |
|---|---|---|
| Name of the rule for delivery at destination, unloaded | DAT (Delivered at Terminal) — limited to a "terminal" | DPU (Delivered at Place Unloaded) — extended to any named place, not just a terminal |
| CIP's mandatory minimum insurance level | Institute Cargo Clauses (C) — the lowest level, same as CIF | Institute Cargo Clauses (A) — the highest level |
| FCA & the on-board bill of lading notation | No clear provision, which created difficulties when a B/L was needed for an L/C | Allows the parties to agree that the buyer instructs the carrier to issue an on-board B/L to the seller |
| Transport security requirements | Mentioned only briefly | Presented in more detail within each party's obligations for every rule |
| Carriage by the party's own means of transport | Not clearly addressed | Explicitly addressed for FCA, DAP, DPU, DDP |
| Number of rules | 11 rules | 11 rules (same count, some rules renamed or their content revised) |
This diagram illustrates the risk-transfer point (not the cost-allocation point — see the table in Section 02 for freight/insurance costs) for the 11 Incoterms 2010 rules, across 9 stages of a typical shipment. No icons are used — only colored blocks and lines, in the style of a drawio/diagrams.net drawing, suitable for internal training material or for sharing with partners. The accompanying .drawio source file can be edited directly in diagrams.net.
A comparison of 7 payment methods commonly used in foreign trade, by the applicable ICC rule set (if any), risk level, and the role of the bank.
| Method | Applicable international rules | Bank's role | Risk to the seller | Risk to the buyer | Payment timing | Bank cost |
|---|---|---|---|---|---|---|
| Advance T/T | No dedicated ICC rule set — funds transferred via SWIFT per the contract terms | Only transmits the payment order, no document check, no guarantee | Low | High — pays before receiving/inspecting the goods | Before shipment | Low |
| Open Account (deferred T/T) | No dedicated ICC rule set | Only transmits the payment order | High — ships and sends documents first, with no guarantee | Low | After receiving the goods, per the agreed term | Low |
| L/C at sight | UCP 600 (ICC, 2007) | Issuing bank gives an independent undertaking to pay if the documents comply | Low — backed by a bank undertaking | Medium — must open an L/C, often requires a margin deposit | As soon as compliant documents are presented (the bank has up to 5 banking days to examine them — UCP 600 Article 14b) | Highest |
| Usance/Deferred L/C | UCP 600 (ICC, 2007) | Bank undertakes to pay on a fixed future date | Low — backed by a bank undertaking, payment received later | Lower — has time to pay after receiving the goods | On the maturity date per the draft/L/C term | High |
| D/P (Documents against Payment) | URC 522 (ICC, 1995) | Releases documents only once the buyer pays — NO undertaking or guarantee | Medium-high — the buyer may refuse to take up the documents | Low — only pays upon receiving the documents | When the bank releases the documents | Medium, lower than an L/C |
| D/A (Documents against Acceptance) | URC 522 (ICC, 1995) | Releases documents once the buyer accepts a term draft — no immediate payment required | Highest — the buyer has already received the goods/documents but has not yet paid, with no bank guarantee | Low | On the maturity date of the accepted draft | Medium |
| CAD (Cash Against Documents) | No single unified ICC rule set — usually governed by a bilateral agreement | Acts as an intermediary (bank/agent) passing along the documents | Medium | Medium | Upon receiving the documents | Medium |
A comparison of the most common insurance clause sets/types currently used in international transport — all are the current versions, with no newer replacement as of the time this was compiled.
| Type / clause set | Issued by | Main scope of cover | Main exclusions | Typically used when |
|---|---|---|---|---|
| Institute Cargo Clauses (A) | Joint Cargo Committee (LMA & IUA), effective 1 January 2009 | All fortuitous loss or damage ("All Risks"), except explicit exclusions | Willful misconduct of the insured, ordinary wear and tear, insufficient packing, war/strikes (unless separately bought) | High-value, fragile goods needing maximum cover — the mandatory minimum under CIP (Incoterms 2020) |
| Institute Cargo Clauses (B) | Joint Cargo Committee (LMA & IUA), 2009 | Specific listed perils (fire/explosion, vessel stranding/capsizing/sinking, collision, earthquake, washing overboard, etc.) | Perils not on the listed schedule, plus the general exclusions | Goods with a medium risk profile, balancing premium cost against cover |
| Institute Cargo Clauses (C) | Joint Cargo Committee (LMA & IUA), 2009 | Only major-loss perils listed (fire/explosion, vessel sinking/capsizing, collision, discharge at a port of refuge, etc.) | Most partial-damage risks, theft, rain/seawater ingress, etc. are not listed | Low-value, low-risk goods; the mandatory minimum under CIF |
| Institute War Clauses (Cargo) | Joint Cargo Committee (LMA & IUA), 2009 | War, civil war, revolution, insurrection, seizure/capture by hostile forces, derelict mines/torpedoes | Ordinary commercial risks (already within the scope of the Institute Cargo Clauses) | Bought as an add-on to (A)/(B)/(C) when the route passes through a high geopolitical-risk area |
| Institute Strikes Clauses (Cargo) | Joint Cargo Committee (LMA & IUA), 2009 | Risks from strikes, riots, civil commotion, labor/political-related terrorism | Ordinary commercial risks | Bought as an add-on to (A)/(B)/(C), especially for routes through ports at risk of strikes |
| Institute Cargo Clauses (Air) | Joint Cargo Committee (LMA & IUA), 2009 | Equivalent to the marine (A) clause but designed specifically for air cargo | Similar to Institute Cargo Clauses (A), adapted for air transport specifics | Goods transported by air |
| P&I Insurance | Mutual P&I Clubs — International Group of P&I Clubs | The SHIPOWNER's third-party civil liability: cargo damage above set limits, pollution, crew casualties | Does not cover the cargo owner's own goods (that is the scope of cargo insurance) | Bought by the shipowner/carrier, not the cargo owner |
| Export Credit Insurance | National or private export credit insurers | Non-payment risk: the foreign buyer's insolvency (commercial risk), or war/embargo/political upheaval in the importing country (political risk) | Does not cover physical loss or damage to the goods in transit | Exporters selling on deferred terms (Open Account, D/A) who want to protect cash flow |
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