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Incoterms Challenge
An ICC Incoterms® 2020 Trade Decision Simulation  ·  International Business Programme
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What are Incoterms®?
Incoterms® 2020 are globally accepted trade rules published by the International Chamber of Commerce (ICC) that define the responsibilities of exporters and importers in international trade transactions.
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Why Do They Matter?
They eliminate ambiguity in global trade by clearly allocating obligations for freight, insurance, customs clearance, and import duty — reducing disputes and enabling seamless cross-border commerce.
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What Will You Do?
Analyse real-world shipment scenarios, allocate trade responsibilities, and make strategic logistics decisions across global supply chains — progressing from Trade Executive through Trade Consultant to Trade Strategist.
"Incoterms® 2020 are globally accepted trade rules developed by the ICC that define the responsibilities of exporters and importers in international trade."
🟢 Level 1
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Trade Executive
In this level, you will play the role of a Trade Executive where you must analyse the given trade and shipment conditions, select the most suitable Incoterm, and identify whether the exporter or importer bears the maximum risk and cost.
📌 10 rounds  ·  ⏱ 3 minutes per round  ·  🏆 3 pts per round · 30 pts total
🎓 Receive a Trade Executive Certificate on completion
🟡 Level 2
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Trade Consultant
In this level, you will act as a Trade Consultant where you must analyse the trade conditions, select the appropriate Incoterm, identify who bears the maximum risk and cost, and calculate the invoice value based on the given commercial trade valuations.
📌 10 rounds  ·  ⏱ 4 minutes per round  ·  🏆 4 pts per round · 40 pts total
🎓 Receive a Trade Consultant Certificate on completion
🔴 Level 3
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Trade Strategist
In this level, you will play the role of a Trade Strategist where you must carefully study the client brief, understand the exporter's risk appetite, recommend the most suitable export destination, identify the safest and most efficient route and mode of transport, and select the most appropriate Incoterm aligned with the exporter's preferred level of risk.
📌 3 live case studies  ·  ⏱ No time limit  ·  🏆 10 pts per case · 30 pts total
📄 Download a Consultancy Report with your score and recommendations

All 10 combinations played in randomised order  ·  Instant feedback after each round  ·  Certificate on completion

Round 1 of 10
ICC Incoterms® 2020 — Wall Chart
TRANSPORT OBLIGATIONS, COSTS AND RISKS Seller's obligation Buyer's obligation Mixed / shared
RULES FOR ANY MODE OR MODES OF TRANSPORT
EXWEx Works (named place of delivery)
COSTS
Export
Freight · Insurance · Import formalities · Delivery
RISKS
Risk from seller's premises →
⬆ Risk & cost transfer: At seller's premises — buyer collects
FCAFree Carrier (named place of delivery)
COSTS
Export + to carrier
Main freight · Insurance · Import formalities
RISKS
Risk from named carrier →
⬆ Risk & cost transfer: When goods handed to first carrier at named place
CPTCarriage Paid To (named place of destination)
COSTS
Export + Main Carriage (freight paid by seller)
Insurance · Import formalities
RISKS
Risk transfers at first carrier (not destination) →
⬆ Risk transfer: First carrier at origin  |  Cost: Seller pays freight to destination
CIPCarriage and Insurance Paid To (named place of destination)
COSTS
Export + Main Carriage + Insurance (ICC-A all risk)
Import formalities
RISKS
Risk transfers at first carrier →
🛡️ Seller must provide ICC-A (all-risk) minimum insurance coverage
⬆ Risk transfer: First carrier at origin  |  Cost: Seller pays freight + insurance
DAPDelivered at Place (named place of destination)
COSTS
Export + Main Carriage + Insurance + Delivery to named place
Import duty + formalities
RISKS
Seller bears risk to named destination →
⬆ Risk & cost transfer: At named destination — goods ready for unloading (buyer unloads)
DPUDelivered at Place Unloaded (named place of destination)
COSTS
Export + Carriage + Insurance + Delivery + Unloading
Import duty
RISKS
Seller bears risk through unloading at destination →
⬆ Risk & cost transfer: After unloading at named destination — only DPU where seller unloads
DDPDelivered Duty Paid (named place of destination)
COSTS
Export + Carriage + Insurance + Import formalities + Duty + Delivery — EVERYTHING
RISKS
Seller bears all risk to final destination
⬆ Maximum seller obligation — seller pays everything including import duty
RULES FOR SEA AND INLAND WATERWAY TRANSPORT ONLY
FASFree Alongside Ship (named port of loading)
COSTS
Export + to quay
Loading + Sea freight · Insurance · Import formalities
RISKS
Risk once alongside vessel →
⬆ Risk & cost transfer: When goods placed alongside vessel at named port of loading
FOBFree On Board (named port of loading)
COSTS
Export + Loading on board
Sea freight · Insurance · Import formalities
RISKS
Risk once on board vessel →
⬆ Risk & cost transfer: When goods on board vessel at named port of loading
CFRCost and Freight (named port of destination)
COSTS
Export + Loading + Sea Freight (paid to destination)
Insurance · Import formalities
RISKS
Risk transfers at port of loading (not destination) →
⬆ Risk transfer: On board at origin  |  Cost: Seller pays sea freight to destination port
CIFCost, Insurance and Freight (named port of destination)
COSTS
Export + Loading + Sea Freight + Insurance (ICC-C minimum)
Import formalities + Duty
RISKS
Risk transfers at port of loading →
🛡️ Seller must provide ICC-C (minimum) insurance coverage
⬆ Risk transfer: On board at origin  |  Cost: Seller pays freight + insurance to destination
⚠️ ICC Warning: This chart is not intended to be used alone, and should always be used in conjunction with the Incoterms® 2020 rule book.
© 2019 International Chamber of Commerce (ICC). "Incoterms" is a registered trademark of the ICC.  |  Source: ICC Knowledge 2 Go: 2go.iccwbo.org

Incoterms Simulation

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