Incoterms, which are also known by their long name of International Commercial Terms, are a set of 11 rules that define who is responsible for what during international transactions. These terms cover every task that is involved in international transactions as well as the risks and costs involved with the transaction of good from seller to buyer.
Incoterms are extremely important as they are known and accepted throughout the world as a requirement on all commercial invoices. These terms are important in reducing the risk of misunderstandings which could turn out to be costly.
The 11 Incoterms
Delivery At Place
Delivered Duty Paid
Carriage and Insurance Paid To
Delivered At Place Unloaded
In previous Incoterm publications, this was known as DAT (Delivery At Terminal)
The seller is responsible for all the costs and risks of delivering the goods to an agreed place of unloading
The seller organises all customs clearance and the unloading of the goods at the place of delivery
The buyer is responsible of sorting import clearance and any duties that are related
Carriage Paid To
Free Alongside Ship
Free On Board
Cost and Freight
Cost, Insurance, and Freight