25.09.2026
ATIBT is publishing Technical Note No. 9 in its series “Guidelines and recommendations on contracts and practices for the international trade in tropical timber”, dedicated to Incoterms® 2020. This new publication provides timber industry operators with practical guidance on choosing the appropriate rules for different types of tropical timber shipments and on better understanding the allocation of risks and responsibilities between sellers and buyers.
Incoterms® play an essential role in international trade contracts. In particular, they define the conditions under which goods are delivered and the point at which risks are transferred from the seller to the buyer.
In the international tropical timber trade, however, practices have evolved considerably with the development of containerisation. Some Incoterms historically widely used by the industry, particularly FOB, CFR and CIF, are reserved under Incoterms® 2020 for conventional sea or inland waterway transport, while FCA is appropriate for containerised shipments.
Technical Note No. 9 therefore aims to help companies select the Incoterm that best reflects the operational reality of their logistics arrangements. This is particularly important when determining precisely when the transfer of risk takes place. Under FCA, risk is transferred when the container is handed over to the carrier at the agreed location, whereas under FOB, risk is transferred once the goods have actually been loaded on board the vessel.
The publication also takes into account the commercial realities of the timber sector. Despite the rules applicable to containerised transport, FOB remains widely used in the international timber trade due to longstanding commercial practices, historical contracts, the practices of certain importers, and requirements associated with documentary credits and IT systems.
ATIBT recommends that operators use FCA for containerised shipments, reserve FOB, CFR and CIF for conventional maritime transport, and systematically specify the exact location associated with the chosen Incoterm in their contracts. Particular attention should also be paid to ensuring consistency between the sales contract, the transport contract and the responsibilities actually assumed by each party.
The objective is to enable operators to make informed choices regarding Incoterms, while reconciling legal certainty, logistical consistency and the commercial practices specific to the tropical timber sector.
Technical Note No. 9 was prepared within the framework of the ATIBT Timber Material and Standardisation Commission, under the leadership of Emmanuel Groutel / WALE, Chair of the Commission, with contributions from Magali Lajoinie / Fil Export and Jean Gérard / CIRAD.
