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