Incoterms, short for “International Commercial Terms,” are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) that serve as a set of international rules for the interpretation of commonly used terms in international trade contracts. They aim to provide clarity and predictability in cross-border transactions by clearly delineating the responsibilities of buyers and sellers in regards to the costs, risks, and tasks associated with the delivery of goods from the seller to the buyer.
The terms are widely used in international commercial transactions or procurement processes and are intended to reduce or remove altogether uncertainties arising from different interpretation of the rules in different countries. They are used to agree on matters such as the time and place of delivery, transport, insurance responsibilities, and who bears the cost at each step of the transport process.
Incoterms are updated periodically to reflect changes in the global trade environment; the most recent version as of my knowledge cutoff date is Incoterms 2020.
For more in-depth information regarding Incoterms, you can visit the following resources:
1. The International Chamber of Commerce (ICC) – The ICC provides resources, including the full Incoterms® rules and training opportunities for understanding and correctly utilizing Incoterms in international trade.
Website: https://iccwbo.org/resources-for-business/incoterms-rules/
2. The Federation of International Trade Associations (FITA) – FITA offers useful information and learning resources about Incoterms to help traders, exporters, and importers correctly apply these terms in their international contracts and agreements.
Website: https://www.fita.org/incoterms.html rel="nofollow">https://www.fita.org/incoterms.html
Please note, while these websites were active as of the latest update to this information, the dynamic nature of the internet means that web pages can change or become unavailable over time. It is always recommended to verify the URLs to ensure that the pages are still accessible.
This A.I.-generated glossary is intended to provide a convenient means to understand terminology used on this website in the context of physical commodities trading. Some terms may have alternative and/or expanded definitions that may not be relevant here and thus not included. Sources provided are for reference and not intended to be an endorsement of the broader content on that website. Suggestions, questions, or corrections can be provided in the comment box on definition pages.