Incoterms 2020: choosing the right terms for agricultural exports

Professional signing a business contract

Incoterms are a central part of every international agricultural contract. They define where delivery takes place, which party arranges transportation, who pays particular costs, and when the risk of loss or damage passes from seller to buyer.

For bulk commodities, the difference between terms such as FCA, FOB, CFR, CIF, CPT, and DAP can have a significant operational impact. The selected rule must correspond to the actual transport route and should be supported by precise wording in the sales contract.

Before signing, both parties should confirm the named place or port, insurance requirements, export and import formalities, inspection procedures, and the documents needed for payment. Clear allocation of these responsibilities helps prevent delays and disputes.

Our team supports clients in selecting practical delivery terms and coordinating contract execution with carriers, terminals, inspectors, and legal specialists.

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