Incoterms (International Commercial Terms):
The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC). They are widely used in International commercial transactions or procurement processes. A series of three-letter trade terms related to common contractual sales practices,
the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods.
The Incoterms rules are accepted by governments, legal authorities, and practitioners worldwide for the interpretation of most commonly used terms in international trade General Transport.
- Clearance of goods
- Carrying goods
- Import and export of goods
- Who is responsible for the payment
- And who is responsible for the risk of moving the goods at different stages of transportation.
First published in 1936, the Incoterms rules have been periodically updated, with the eighth version— Incoterms® 2010—having been published on January 1, 2011. “Incoterms” is a registered trademark of the ICC. In some jurisdictions, the duty costs of the goods may be calculated against a specific Incoterm (for example in India, duty is calculated against the CIF value of the goods, and in South Africa the duty is calculated against the FOB value of the goods).
Incoterms are divided into the following four groups with terms related to each group:
GroupEXW Ex Works (named place)
GroupFCA Free Carrier (named place of delivery)
Group CPT Carriage Paid To (named place of destination)
Group DAP Delivered at Place (named place of destination)
