What is Incoterms?
The Incoterms or International Commercial Terms are a set of pre-defined commercial trade terms published by the International Chamber of Commerce (ICC). ICC first published Incoterms in 1930. Since 1990 ICC has issued revisions to address the changing landscape of international trade. These revisions have been published in the beginning of the year of each decade (1990, 2000, 2010). 2010 is the latest version and is currently in use. The 2020 revision should be used starting january 1st of the year.
Incoterms are ubiquitous in international commerce. Trade bodies, courts, and lawyers all advocate the use as they serve as a universal language defining sales agreements. Incoterms specify which part (seller or buyer) are responsible for costs and risks associated with international transportation and delivery of goods.
“Incoterms” is a registered trademark of the ICC.
Incoterms 2010 are divided into 2 sets. First apply to any mode of transport and the second only applies to goods shipped by ocean.