Incoterms® rules

Using the Incoterms® 2020 rules to manage tariff risk in international trade

  • 24 April 2025

Read this guide to discover how the Incoterms® 2020 rules—developed and maintained by the International Chamber of Commerce (ICC)—offer a practical tool to manage risk in international commercial contracts.

Using the Incoterms 2020 to manage tariff risk in internation trade

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Using the Incoterms 2020 to manage tariff risk in internation trade

Download the guide

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In today’s global trade environment, tariff changes have become increasingly common due to shifting policy priorities, trade negotiations, and the expiration of preferential regimes. 

Although the Incoterms® rules do not affect tariff rates or customs procedures, they establish the allocation of responsibilities between buyers and sellers. This clarity enables businesses to mitigate the risks associated with sudden tariff changes and ensures smoother cross-border transactions. 

This guide explains: 

  1. Why the Incoterms® rules matter in a volatile tariff environment. 
  1. A breakdown of who pays the tariff according to Incoterms® rules and transport methods 
  1. Practical use of Incoterms® rules in times of tariff volatility and further resources 
Incoterms 2020

Incoterms® 2020

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