Selecting Incoterms 2020 Rules in Cross-Border B2B Contracts

Contracts & Advisory · 2025-02-10 · HayGorc Trade Advisory

Comparing EXW, FCA, FOB, CIF, and DAP to align freight control, cargo insurance, and customs valuation in Armenia trade flows.

In cross-border supply contracts, selecting an ill-suited Incoterms 2020 rule creates avoidable friction at origin warehouses and destination customs terminals. Under EXW, for instance, foreign buyers frequently face obstacles executing export customs declarations inside the seller’s jurisdiction.

While FOB and CIF remain standard for bulk ocean shipments, containerized and overland multimodal cargo bound for Yerevan is typically structured far more cleanly under FCA (named terminal/warehouse) or DAP (Delivered at Place, Yerevan terminal).

Contract drafters must also align Incoterms with customs valuation rules: under F-group terms, freight and insurance charges up to the EAEU border must be separately invoiced and substantiated for accurate duty calculation.