What are incoterms?

What are Incoterms®?

Incoterms® stands for “International Commercial Terms” and are internationally recognized terms of agreement for buying and selling goods across the globe.  Incoterms® are agreed upon between the seller and buyer in regards to when the risk and responsibility of the goods and transport are transferred. Incoterms® are not law nor binding.  They are only used as a guidance guide and represent different ways international shipments are bought and sold.  When buying goods, we recommend E or F Terms.  When selling goods, we recommend C Terms.

Rules of Thumb

  • The party responsible for transport arrangement and payment of transportation charges is in control of the cargo
  • The more responsibility the party has, the more control they have

Incoterms® Training

Download Incoterms Chart of Responsibility (PDF)

 

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