Incoterms
Incoterms explained
Entering the world of global trade means understanding
your roles and responsibilities in importing
your roles and responsibilities in importing
What do Incoterms mean?
Incoterms are rules – set by the International Chamber of Commerce – that define the terms of trade for the sale of goods all around the world. You can think of them as the common language of trade – and by understanding them better, you will be better equipped in importing and exporting goods with parties around the world.
What Incoterms do and don’t cover
What Incoterms do cover
They do define the obligations and costs between a buyer and seller
They do define the point at which the risk for cargo passes between buyer and seller
What Incoterms don’t cover
They don’t cover the passage of title or ownership
They don’t cover payment – this is negotiated separately.
They don’t cover insurance – only two Incoterms, CIF and CIP outline insurance as the seller’s responsibility.