Incoterms in Turkey (Incoterms 2020)
"How do Incoterms 2020 work in Turkish import and export contracts?"
Quick Answer
Incoterms 2020 are standard delivery terms used in Turkish international trade contracts to define who arranges transport, insurance, export/import customs clearance, and when risk transfers from seller to buyer (commonly EXW, FCA, FOB, CIF/CIP, DAP, and DDP depending on shipment and bargaining power).
How Incoterms Apply in Turkish International Trade Contracts
In Turkey, Incoterms are used as contractual rules (not “Turkish law” by themselves) to clarify delivery obligations and risk transfer in cross-border sales; the key is to reference the correct version (usually “Incoterms® 2020”) and pair the term with a precise named place/port (e.g., “FCA Istanbul Airport, Incoterms® 2020”) so customs, carrier handover, and document requirements are legally and operationally aligned.
Key Points to Remember
- Always specify “Incoterms® 2020” + named place/port
- EXW is often risky for exports from Turkey (export clearance/document control issues) and FCA is frequently safer
- FOB/CIF are for sea/inland waterway—use FCA/CPT/CIP for containerized shipments
- Incoterms do not cover payment, title transfer, or liability limits—these must be drafted in the sales contract (and aligned with L/C, insurance, and transport documents)
Practical Applications
For Turkish imports/exports, most disputes arise when the Incoterm is inconsistent with the logistics reality: who can practically complete export declarations, who controls the bill of lading/air waybill needed for payment (especially under letters of credit), and whether insurance is actually arranged at the required level (notably CIF/CIP). A strong Turkish international sales contract should therefore tie the chosen Incoterm to (i) customs responsibilities and authorizations, (ii) required transport documents, (iii) inspection/packaging and delivery timeline, and (iv) dispute resolution/governing law—so risk transfer and cost allocation are enforceable and commercially workable.
Need Expert Legal Guidance?
We help international companies trading with Turkey draft and negotiate Incoterms 2020 clauses, align them with customs and shipping documentation, and reduce delivery/risk-transfer disputes in Turkish import-export contracts.
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