InCoTerms

In international trade, the Incoterms® rules outline the shipping responsibilities of buyers and sellers. Short for International Commercial Terms, these rules clarify who covers costs, where responsibility for a shipment begins and ends, and how both parties manage risk. Here’s a look at the updates made in 2020.​​​

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What Are Incoterms Rules?

Incoterms, short for International Commercial Terms, are a set of rules that clarify the responsibilities in a shipping contract regarding insurance, freight, and transportation costs. They outline when these cost responsibilities and the transfer of risk shift from the buyer to the seller. By providing common reference points, Incoterms facilitate international trade. For more details, check out our Incoterms FAQs below.

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What Do Incoterms Cover?

• Delivery locations

• Transfer of risk

• Responsibilities such as insurance and customs duties

• Cost allocation

• Modes of transportation
   

The International Chamber of Commerce (ICC) revises the Incoterms rules every ten years.