Each Incoterm defines a different level of responsibility for the delivery of goods. While some Incoterms require the seller to take on more responsibilities, others place more responsibility on the buyer.

While the core elements of the previous versions have been retained, the following changes are worth noting:

1. Definition of “Delivered at Place” (DAP): the definition of DAP has been modified to include deliveries to an inland clearance depot (ICD), which is a facility where goods are cleared for import or export. This change reflects the increasing use of ICDs in international trade and helps to ensure that the responsibilities of the buyer and seller are clearly defined in these situations.
2. Definition of “Delivered Duty Paid” (DDP): the definition of DDP has been clarified to articulate the seller is responsible for all costs and risks associated with the delivery of goods, including customs clearance. This change helps to ensure there is no confusion over who is responsible for customs-related costs and risks in international trade transactions.
3. Increased Focus on Sustainability: Incoterms 2023 places a greater emphasis on sustainability and the responsibility of buyers and sellers to act in an eco-friendly manner. This includes recommending both seller and buyer consider using more sustainable transportation options, such as rail or sea transport, instead of air freight.
4. Simplification of Definitions: the definitions of certain Incoterms have been simplified in Incoterms 2023 making them easier to understand to reduce the risk of confusion. This includes the clarification of certain terms, such as the responsibilities of the buyer and seller for loading and unloading goods.