Incoterms, short for International Commercial Terms, are a set of standardized rules and definitions that govern the rights and obligations of buyers and sellers in international trade contracts. Developed and maintained by the International Chamber of Commerce (ICC), Incoterms provide a common language and framework for negotiating and interpreting key elements of international trade, such as determining the division of costs, the point at which risk transfers from the seller to the buyer, and the responsibilities for arranging transportation and insurance.
These terms are crucial in international trade as they ensure that both parties have a clear understanding of their roles and responsibilities during the entire shipping process. By clearly defining the obligations and costs associated with each Incoterm, they help reduce misunderstandings, minimize disputes, and facilitate smooth transactions between businesses across different countries.
Here are two active websites where you can find further information about Incoterms:
1. International Chamber of Commerce (ICC) – Incoterms® 2020:
This webpage, hosted by the ICC, provides an overview of Incoterms, their importance in international trade, and detailed explanations of each individual Incoterm. It offers the latest information and updates regarding the most recent version of Incoterms.
2. Trade Finance Global – Incoterms Guide:
Trade Finance Global’s Incoterms Guide offers comprehensive information on Incoterms, including explanations of each individual term, the differences between Incoterms 2010 and 2020, and practical examples to help understand their application. The website also provides expert insights into how to choose the most suitable Incoterm for specific international trade transactions.
By visiting these resources, you can gain a deeper understanding of Incoterms and their significance in international trade, enabling you to make informed decisions and negotiate contracts with confidence.
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.