International trade in wine, beer and spirits continues to evolve. Routes diversify, compliance expectations increase and supply chains involve more partners than before. In this environment, clear commercial terms can help importers plan with confidence and avoid misunderstandings.

Incoterms® 2020 remain the globally recognised framework for defining responsibilities between buyers and sellers. They clarify who manages transport, who carries risk at each stage and how costs are shared. For importers of alcoholic beverages, this clarity supports smoother coordination across sea freight, inland transport and customs processes.

This article explains how Incoterms® 2020 work today and why they continue to matter for beverage trade in 2026.

What are Incoterms®?

Incoterms® are international commercial terms published by the International Chamber of Commerce. They provide a common language for buyers and sellers involved in cross-border trade.

Each Incoterm® defines three core elements:

• Transfer of risk between seller and buyer
• Transfer of costs related to transport
• Obligations of both parties, including documentation and insurance

Incoterms® apply to domestic and international transport and can be used across wine, beer and spirits trade lanes. They do not replace sales contracts, but they support them by setting clear expectations.

Are Incoterms® 2020 still valid?

The current rules in use are Incoterms® 2020. While the ICC periodically reviews and updates the framework, Incoterms® 2020 remain applicable until a new edition is formally released.

For importers, this means contracts referencing Incoterms® 2020 are still fully valid. What matters most is stating the chosen Incoterm® clearly, including the named place and the year, for example, “DAP Hamburg, Incoterms® 2020”.

Why do Incoterms® matter for beverage transport?

Alcoholic beverages often move through multiple transport stages and handling points. Incoterms® help align expectations across these stages.

They can support importers by:

• Reducing uncertainty around risk handover
• Clarifying which party arranges sea freight or inland transport
• Supporting smoother coordination with logistics partners
• Helping manage insurance planning and cost visibility

When Incoterms® are selected carefully, they contribute to predictable workflows and clearer accountability throughout the supply chain.

What changed between Incoterms® 2010 and 2020?

Incoterms® 2020 introduced targeted updates to improve clarity and reflect modern trade practices.

Key changes include:

• DAT renamed to DPU (Delivered at Place Unloaded), clarifying that delivery can occur at any suitable location, not only a terminal
• Higher insurance cover under CIP, aligned with Institute Cargo Clauses A
• More flexible FCA usage, including the option for an onboard Bill of Lading
• Explicit recognition of own-means transport, where buyers or sellers use their own vehicles
• Greater focus on security-related obligations within transport arrangements

These refinements can be particularly relevant when planning wine, beer and spirits movements across complex routes.

How do Incoterms® define delivery points?

Every Incoterm® is linked to a named place. This place determines how risk and responsibility shift.

Two concepts are central:

• Place of delivery, where risk transfers from seller to buyer
• Place of destination, where the seller arranges transport to

Understanding this distinction helps importers align Incoterms® with their operational setup and visibility tools.

Types of Incoterms®

Here is an overview of the different types of Incoterms®.

EXW, FCA, FOB, FAS

Example: FOB Rotterdam. Rotterdam, as named place, is the “place of delivery” where the transfer of risk occurs between seller and buyer.

CIP, CPT, CFR and CIF

Example: CPT New York. New York, as named place, will be the “place of destination” to which seller must contract carriage. Place of delivery (“transfer of risk”) will be the place where the seller hands over the products to the contracted carrier at origin.

DAP, DPU and DDP

Example: DAP Chicago. Chicago, as named place, will be both the “place of delivery” (transfer of risk) and “place of destination” (place to which the seller must contract carriage)

The complete Incoterm® rules can be obtained from the ICC. You can also download Hillebrand Gori’s Incoterms® 2020 guide to help you understand the differences between each incoterm and identify which one best suits your shipment.

What are the main groups of Incoterms®?

Incoterms® 2020 include 11 rules, grouped by how delivery and destination are defined.

Here is a practical overview:

• EXW, FCA, FAS, FOB
  Risk transfers at origin. The named place is the place of delivery.
• CPT, CIP, CFR, CIF
  The seller contracts transport to the destination, but risk transfers earlier.
• DAP, DPU, DDP
  Delivery and destination are the same location. Risk transfers at arrival.

This structure supports different trade strategies, depending on how much control an importer prefers over transport and costs.

How should importers choose the right Incoterm®?

There is no single “best” Incoterm®. The right choice depends on experience, risk appetite and internal capabilities.

When selecting an Incoterm®, importers often consider:

• Control over sea freight and inland transport
• Internal customs and compliance resources
• Insurance preferences
• Visibility requirements across shipments

Clear alignment between commercial terms and operational reality can help keep beverage flows predictable.

More information can be found here: Incoterms® summarized, a quick reference

How Hillebrand Gori can help explain Incoterms®

As a logistics partner specialised in wine, beer and spirits, Hillebrand Gori supports shippers in applying Incoterms® clearly and effectively. With expertise across sea shipping, inland transport and customs coordination, teams can help align commercial terms with operational execution. Through specialist guidance and digital visibility tools such as myHillebrandGori, the focus remains on making beverage logistics easy, transparent and reliable.