Incoterms® 2020 are internationally recognised rules published by the International Chamber of Commerce that define how responsibilities, costs and risks are divided between a seller and buyer during the transportation of goods. The eleven rules clarify who arranges and pays for transportation, where delivery takes place, when the risk of loss or damage transfers, who completes export and import customs formalities and, under CIP and CIF, who arranges cargo insurance. Seven rules—EXW, FCA, CPT, CIP, DAP, DPU and DDP—can be used for any mode of transport, while FAS, FOB, CFR and CIF are intended specifically for sea and inland-waterway movements. Selecting the correct term is important because the party paying the freight is not necessarily the party carrying the transport risk throughout the journey. For example, under FCA the seller delivers the goods to the buyer’s nominated carrier at the agreed location, while DAP requires the seller to arrange transportation to the named destination but leaves import clearance and duties with the buyer. Under DDP, the seller assumes responsibility for import clearance, duties and taxes, which may create difficulties if the seller is not registered or permitted to act as importer in the destination country. FOB is commonly used incorrectly for containerised or multimodal shipments; FCA is generally more appropriate where goods are handed to a carrier before being loaded onto the vessel. Incoterms® do not determine ownership of the goods, payment terms, product quality, contractual remedies or the governing law, so these matters must be addressed separately in the sales contract. Every quotation, purchase order and commercial invoice should state the selected three-letter rule, the precise named place or port and the version—for example, “FCA London Heathrow, Incoterms® 2020.” Clear agreement at the beginning helps prevent unexpected freight charges, customs delays, insurance gaps and disputes between trading partners. Aero Time Critical can assist customers in understanding how the selected Incoterm affects freight arrangements, documentation and customs responsibilities, while the final commercial term should always be agreed between the buyer and seller. This article provides general guidance only and does not replace the official ICC Incoterms® 2020 rules or transaction-specific legal advice.