What are the Incoterms® rules?
The Incoterms® rules are universally recognized essential terms of trade for the sale of goods, established by the International Chamber of Commerce (ICC). They are designed to provide specific guidance to all parties participating in the import and export of global trade on a daily basis. In this capacity, they guide buyers and sellers around the world during the preparation and fulfilment of contracts for the shipment of goods. Whether you are filing a purchase order, packaging and labelling a shipment for freight transport, or preparing a certificate of origin at a port, the Incoterms® rules are there to guide you.
What does “Incoterms®” stand for?
“Incoterms®” is an acronym standing for international commercial terms. “Incoterms®” is a trademark of the ICC.
The Incoterms® rules feature abbreviations for technical terms, like FOB (“Free on Board”) or EXW (“Ex Works”). These terms all have very precise meanings relating to the sale of goods globally and are universally recognized by buyers and sellers around the world.
The latest version of Incoterms®
Incoterms® 2020 is the most up-to-date version of the Incoterms® rules. This latest version of the trade terms formally defines the delivery point in the transaction as well as the transfer of the risk of loss or damage to the goods from the seller to the buyer.
For more detailed information on Incoterms®, visit the dedicated ICC page: https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-2020/
