Practical Guide to Incoterms 2020 Changes: What Turkish Exporters and African Importers Must Know
Incoterms 2020 — What Actually Changed and How It Hits the Turkey-Senegal Corridor
The International Chamber of Commerce released Incoterms 2020 on 10 September 2019, effective 1 January 2020, replacing the 2010 edition. Five years in, the 2010 version is still routinely mis-quoted in Turkey-Senegal contracts — and every mistake has a price tag. This guide maps the four practical changes, shows which rule to pick by shipping lane (Istanbul-Dakar direct vs transshipment), and lists the exact clauses to paste into your next PO.
The Four Material Changes in Incoterms 2020
- DAT becomes DPU (Delivered at Place Unloaded) — the rule is no longer restricted to terminals; any agreed destination works. For a Turkish exporter delivering to an importer’s warehouse in Pikine or Diamniadio, DPU is the cleanest rule.
- FCA now allows an “on-board” Bill of Lading — previously impossible. The 2020 rule lets the buyer instruct the carrier to issue an on-board B/L to the seller, solving the classic letter-of-credit problem with FCA (banks want to see “shipped on board”).
- Different insurance levels: CIF stays at ICC (C), CIP moves up to ICC (A). ICC (A) is all-risks; ICC (C) is a restricted named-perils cover (fire, sinking, collision). For high-value containerised Turkish goods, CIP with ICC (A) is the safe choice.
- Seller/buyer own transport explicitly allowed in FCA, DAP, DPU, DDP — the 2010 version assumed a third-party carrier. Relevant for Turkish suppliers using their own trucks to the Port of Izmir or Mersin.
The 11 Incoterms 2020 Rules at a Glance
| Rule | Mode | Who pays main freight | Who insures | Risk transfer |
|---|---|---|---|---|
| EXW (Ex Works) | All | Buyer | Buyer | Seller’s premises |
| FCA (Free Carrier) | All | Buyer | Buyer | Named place |
| CPT (Carriage Paid To) | All | Seller | Buyer | First carrier |
| CIP (Carriage and Insurance Paid) | All | Seller | Seller – ICC (A) | First carrier |
| DAP (Delivered at Place) | All | Seller | Seller | Arrival at destination |
| DPU (Delivered at Place Unloaded) | All | Seller | Seller | After unloading |
| DDP (Delivered Duty Paid) | All | Seller | Seller | Import cleared |
| FAS (Free Alongside Ship) | Sea only | Buyer | Buyer | Alongside vessel |
| FOB (Free on Board) | Sea only | Buyer | Buyer | On board |
| CFR (Cost and Freight) | Sea only | Seller | Buyer | On board |
| CIF (Cost, Insurance and Freight) | Sea only | Seller | Seller – ICC (C) | On board |
Which Rule to Pick on the Turkey-Senegal Lane
- Full container, first-time buyer, sea via CMA CGM / Maersk Istanbul-Dakar → CIF Dakar. Turkish supplier arranges freight and basic insurance. Add an “upgrade to ICC (A)” clause if cargo value exceeds USD 30,000.
- Experienced importer with Dakar freight forwarder (Bolloré/AGL, SAGA, Necotrans) → FCA Istanbul or FOB Mersin. Lets you consolidate with other Turkish suppliers in the same container and negotiate better freight rates directly.
- Air freight pharma, electronics, jewellery via Turkish Cargo (IST-DKR 4x weekly) → CIP Dakar airport with ICC (A).
- Importer wants zero hassle, full landed quote → DPU Dakar warehouse or DDP Dakar. Be explicit: most Turkish exporters do not know Senegalese customs — so DDP contracts often go wrong. Only accept DDP if supplier partners with a Senegalese licensed broker.
- Never pick EXW for international shipments — it leaves the Turkish exporter with zero export clearance responsibility, a frequent source of documentation failures.
Freight Rates to Benchmark (2026, Istanbul/Mersin → Dakar, 40-ft HC)
- CMA CGM (transbordement Méditerranée + transshipment): USD 2,400–3,100 + BAF
- Maersk via Algeciras: USD 2,100–2,700
- MSC via Tanger Med: USD 2,000–2,600
- Turkish Cargo IST-DKR airfreight: USD 3.80–5.50/kg
- Add THC Dakar ~USD 120/TEU, COSEC fee 0.4% CIF
Clause You Should Paste Into Every Contract
“Delivery shall be made CIP Dakar, Incoterms 2020, with marine cargo insurance on Institute Cargo Clauses (A) for 110% of CIF value, issued by a Turkish underwriter rated A- or better (e.g., Anadolu Sigorta, Türkiye Sigorta, AXA Sigorta). Proof of insurance shall be presented as a condition of payment release.”
Five Mistakes That Cost Real Money on the Corridor
- Writing “CIF Dakar port, Incoterms” without specifying the year — defaults to whichever edition favours the disputing party’s lawyer
- Using CIF for a container shipment but invoicing under FOB-style risk allocation in the accompanying L/C
- DDP contracts where the Turkish supplier cannot actually act as importer of record in Senegal (requires NINEA, VAT registration)
- Silent-shift Incoterms: using CIF but paying freight separately — creates audit traps for COTECNA value verification
- Not aligning Incoterm with insurance: CIF pays for ICC (C) — if your bank L/C demands ICC (A), mismatch means refusal
Bottom Line
For 80% of Turkey-Senegal shipments, CIP Dakar with ICC (A) insurance is the optimal Incoterms 2020 rule: it gives the importer full-risk cover without handing the Turkish supplier responsibility for Senegalese customs. Write the year, the place, and the insurance cover level explicitly into every PO — and train your bank’s documentary credit team to verify the match before releasing funds.
