What are Incoterms?
Incoterms (International Commercial Terms) are a standardized set of rules developed by the International Chamber of Commerce (ICC). They are used in international trade to clearly define who is responsible for transport, insurance, risks, and costs during different parts of a shipment.
By specifying an Incoterms rule in a contract, it becomes clear where responsibility transfers from the seller to the buyer.
Examples of Incoterms
Common Incoterms include:
- EXW (Ex Works)
- FCA (Free Carrier)
- DAP (Delivered at Place)
- DDP (Delivered Duty Paid)
Each term precisely defines when responsibility and costs shift between the parties.
