Incoterms 2020 allocates transport, delivery, cost and risk responsibilities between buyer and seller. It does not by itself determine payment terms, transfer of title or remedies for breach. A quotation should state the rule, named place or port and version, such as "FOB Shenzhen, Incoterms 2020."
Under EXW the seller generally makes the goods available at its premises or another named place while the buyer handles most transport and export arrangements. FCA may be more practical when the seller is expected to complete export clearance.
FOB, CFR and CIF are intended for sea or inland-waterway transport. The buyer arranges main carriage under FOB. Under CFR and CIF the seller pays freight to the destination port, but risk normally transfers when the goods are loaded on board at origin. CIF also includes agreed cargo insurance.
CPT and CIP can be used for air and multimodal transport. DAP, DPU and DDP extend the seller's responsibility toward the destination. DDP requires careful review of import clearance, duties, local tax and the seller's ability to act in the destination country.
For a glove quotation, provide the destination country, expected volume, case pack, delivery port or address, insurance requirement and preferred Incoterm. The final allocation should follow the sales contract, named place and ICC Incoterms 2020 rules.
