Incoterms are a set of international rules for the interpretation of the most commonly used trade terms.
There are 11 main terms. These denote the points at which shipper, carrier and consignee risk and responsibility start and end.
This set of international rules was first published in 1936 known as “INCOTERMS 1936” by the International Chamber of Commerce. Incoterms are amended every 10 years.
Incoterms are recognized globally by courts and other authorities. Frequently, parties to a contract are unaware of the different trading practices in their respective countries. This lack of knowledge can lead to misunderstandings and disputes between customer and supplier. The incorporation of Incoterms in international sales contracts reduces this risk.
List of INCOTERMS
How to use:
Click on an INCOTERM below to see more information about it. If there is anything you would like to know more about – please contact us and we will do our best to assist you.
Cost of goods and freight, duty unpaid, to a named port of destination. Sea or inland waterway transport only. Insurance to be covered by the buyer.
Cost of goods plus insurance and freight, duty unpaid, to a named port of destination. Sea or inland waterway transport only.
Costs of carriage and insurance of the goods, duty unpaid to the named destination. Applies to all modes of transport.
Costs of carriage of the goods, duty unpaid to the named destination. Applies to all modes of transport. Insurance to be covered by the buyer.
The seller delivers the goods when they are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. Parties are advised to specify as clearly as possible the point within the agreed place of destination, because risks transfer at this point from seller to buyer. If the seller is responsible for clearing the goods, paying duties etc consideration should be given to using the DDP term.
Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. Both parties should agree the terminal and if possible a point within the terminal at which point the risks will transfer from the seller to the buyer of the goods. If it is intended that the seller is to bear all the costs and responsibilities from the terminal to another point DAP or DDP may apply.
Costs of delivery, including duty, paid up to a named place in the country of importation. Applies to all modes of transport.
The goods are made available to the buyer at the exporter’s premises, suitably packed unless otherwise arranged for a known means of transport.
All cost up to delivery on quay or in lighters (barges) at the named port of shipment. Sea or inland waterway transport only.
Cost of delivery, cleared for export, into the charge of the carrier named by the buyer at the named place or point. Allied mostly to air and rail transport but could be used for all modes.
All costs up to delivery over the ships rail at the named port of shipment. Sea or inland waterway transport only.