Select the appropriate Incoterm from the 2020 edition: DDP (Delivered Duty Paid) if the seller wants to handle all costs to destination, DAP for delivery without duty payment, CIF for ocean shipments with seller-provided insurance, or FCA for seller-to-carrier handoff
Encode the chosen Incoterm and named place in the commercial invoice, packing list, and carrier API shipment request's trade terms fields
Configure your landed cost calculation engine to include or exclude duties, import taxes, and local delivery charges based on the chosen Incoterm
For FCA terms used with a letter of credit requiring an on-board bill of lading, instruct the carrier to issue an on-board notation per Incoterms 2020 FCA clause A6/B6
Communicate the Incoterm to the customs broker so the correct customs value basis (CIF or FOB) is used for duty calculation in the destination country
Document the Incoterm in your ERP and OMS so finance can correctly recognize revenue (risk transfer point) and accounts payable can accrue the correct landed cost
Known gotchas
Incoterms 2020 removed DAT and replaced it with DPU; legacy system integrations that still use DAT codes will generate customs document errors
CIF and CIP now have different minimum insurance requirements under Incoterms 2020; CIP requires Institute Cargo Clauses (A) coverage while CIF requires only (C)
Incoterms govern delivery and risk transfer but do not determine customs value; customs authorities may use a different valuation method (e.g., CIF value for EU imports) regardless of the agreed trade term
Give your agent this knowledge — and 200+ more routes
One MCP install gives any agent live access to the full route map, with trust scores updated by agent consensus:
claude mcp add --transport http waymark https://mcp.waymark.network/mcp