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Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contracts. Shippers worldwide use standard trade definitions (called Incoterms) to spell out who’s responsible for the shipping, insurance, and tariffs on an item; they’re commonly used in international contracts and are protected by International Chamber of Commerce copyright. Incoterms significantly reduce misunderstandings among traders and thereby minimize trade disputes and litigation. Familiarize yourself with Incoterms so you can choose terms that will enable you to provide excellent customer service and clearly define who is responsible for which charges.

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What are the Current Incoterms ?

In 2010, the two main categories of Incoterms were updated and are organized by modes of transport. Used in international as well as in domestic contracts for the first time, the new groups aimed to simplify the drafting of contracts and more clearly stipulate the obligations of buyers and sellers:    

Incoterms that apply to any mode of transport are
  • EXW Ex Works
  • FCA Free Carrier
  • CPT Carriage Paid To
  • CIP Carriage and Insurance Paid To
  • DAT Delivered at Terminal
  • DAP Delivered at Place
  • DDP Delivered Duty Paid
Incoterms that apply to sea and inland waterway transport only
Commerce Incoterms
Incoterms Considerations
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