Incoterms® (International Commercial Terms) are standardized rules published by the International Chamber of Commerce (ICC) that define the responsibilities of sellers and buyers in international commercial transactions: who pays freight, who insures the goods, and when risk transfers.
The current version is Incoterms® 2020, which came into effect on January 1, 2020. They include 11 rules divided into two groups: 7 rules applicable to any transport mode and 4 rules reserved for sea and inland waterway transport.
FAQ
Which Incoterm is most commonly used in Morocco for imports?+
CIF (Cost, Insurance and Freight) is the most frequently used Incoterm for Moroccan imports, especially for raw materials and industrial products arriving by sea from Asia or Europe. FOB is also widely used for Moroccan exports.
What is the difference between FOB and CIF?+
With FOB, risk and costs pass to the buyer once goods are loaded on the vessel. With CIF, the seller also pays sea freight and takes out minimum insurance to the destination port — but risk still transfers on board at the origin port.
Do Incoterms include customs duties?+
Only DDP (Delivered Duty Paid) includes import customs duties in the seller's obligations. For all other Incoterms, customs duties at destination remain the buyer's responsibility.
Can I use Incoterms for domestic trade within Morocco?+
Incoterms are designed for international trade, but they can be used in domestic Moroccan contracts. In that case, clauses related to customs duties and import formalities have no practical application.