Use Incoterms in an RFQ without leaving the place unstated

Trade terms help organise responsibilities, but a three-letter code alone is not a complete delivery instruction. The ICC Incoterms® 2020 rules list distinct terms for different modes and responsibilities. A buyer should name the version and place before relying on a quotation.

Define the requirement

State the proposed term, version and named place if you know them. If you do not, describe the handover and destination you need and ask the supplier to propose a suitable basis. Keep product price, freight and insurance assumptions visible so the proposal can be compared.

Questions to send with the RFQ

Ask precisely where risk and cost are intended to transfer, which party arranges transport and what is excluded. Check the answer against the full ICC rule or qualified trade advice for the actual transaction; do not use an online abbreviation list as your only source.

Review the answer

Compare offers on a common basis. A factory pickup offer and a delivered offer have different scopes, even if the goods are identical. A buyer may request more than one delivery option, but each should show its own price and handover place.

An example to adapt

For a hypothetical shipment to a named warehouse, “DAP” without the warehouse address leaves a gap. The buyer could instead state the city and provisional site, then request a revised delivered price when the final receiving point is confirmed.

Decision before sending

Do not choose a trade term because it sounds familiar or appears on a previous invoice. Start by deciding which party can realistically control transport, export and import tasks for this route. Then identify the named place that the term requires and have the commercial team check the ICC rule's actual allocation. The RFQ can request alternative delivery bases, but each needs its own price and responsibility line. That clarity matters more than a fashionable abbreviation.