Incoterms® · Method
Methodology and sources
ERP Reference explains the Incoterms® 2020 rules in plain English. It is not the official text: the rules are published and copyrighted by the International Chamber of Commerce (ICC). We never reproduce or closely paraphrase ICC's rule text; for that, go to ICC.
What counts as a source
- Public explanatory pages from customs authorities, government trade agencies, export credit agencies and chambers of commerce.
- ICC's public pages and ICC Academy articles, for edition and revision status and as one explanatory source among others — never for rule wording.
- Commercial pages (forwarders, software vendors) only when labelled “secondary”, and never as the only source.
When a rule counts as verified
Every rule needs at least 2 fetched sources, and every field (transport mode, risk transfer point, each of the 10 cost items, insurance) must be confirmed. Anything not confirmed is shown as “Not verified”, and the page is hidden from search engines until it is complete. Current status: 11 of 11 rules complete.
How sources become the cost table
- Most sources say where the seller's costs end (for example, “all costs until the goods are on board”). We apply that statement to every cost item before that point, and only when at least 2 sources agree.
- “Depends” means the sources disagree, or the answer turns on the named place or on what the contract of carriage covers. The note next to it says which.
- Only CIF and CIP oblige the seller to insure. For the other rules no insurance is required: the insurance row shows who would pay for cover of its own risk, and “Depends” where the risk passes from seller to buyer before the main carriage. The note always says that cover is optional.
- Common mistakes are the ones our listed sources warn about, in our own words.
Diagrams, comparisons and the chooser
These are generated by code from the same rule data, so they can never say more than the data does. Positions in the diagrams are schematic. The chooser never guesses: a rule whose relevant field is unverified goes into “Cannot assess yet” rather than being suggested or excluded.
Updates
Rule data is re-checked against its sources about once a month, and each rule page shows the date it was last checked. Guides are editorial and dated individually.
Sources checked so far
- US International Trade Administration (trade.gov), checked
- Export Development Canada (edc.ca), checked
- Export Development Canada (edc.ca), checked
- International Chamber of Commerce (iccwbo.org), checked
- International Chamber of Commerce (iccwbo.org), checked
- UK Department for Business and Trade (business.gov.uk) (business.gov.uk), checked
- Export Development Canada (edc.ca), checked
- Export Development Canada (edc.ca), checked
- Netherlands Chamber of Commerce (KVK) (kvk.nl), checked
- ICC Academy (International Chamber of Commerce) (academy.iccwbo.org), checked
- ICC Academy (International Chamber of Commerce) (academy.iccwbo.org), checked
- International Chamber of Commerce (Global Policy Commissions Workplan 2026) (iccwbo.org), checked
- Maersk (chart by Pilot Freight Services) (delivers.maersk.com), checked — secondary
- HM Revenue & Customs (GOV.UK) (gov.uk), checked
- European Commission, DG Taxation and Customs Union (taxation-customs.ec.europa.eu), checked
- European Commission, Access2Markets (trade.ec.europa.eu), checked
Questions
- Is ERP Reference the official text of the Incoterms® rules?
- No. The official rules are published by the International Chamber of Commerce (ICC). We explain the rules in our own words, based on public explanatory sources, and link to ICC for the official text.
- Where do the facts on this site come from?
- From public explanatory pages by customs authorities, trade agencies, export credit agencies and chambers of commerce. A rule page is only marked complete when at least 2 such sources have been fetched and checked.
- What does “Not verified” mean?
- That we have not yet confirmed that item against our sources. We show the gap instead of guessing, and pages with gaps are hidden from search engines.