What are Incoterms?
The International Commercial Terms, or Incoterms for short, are a registered trademark of the International Chamber of Commerce (ICC) and were first published in 1936. The latest version of the Incoterms came into force on January 1, 2020. Incoterms are used so that buyer and seller can agree on the most important contract-relevant conditions and obligations in a uniform manner. The Incoterms are primarily intended to regulate the method of delivery of goods.
What are the main functions of Incoterms?
- Cost allocation
- Distribution of duties
- Transfer of risk
What secondary functions do Incoterms have?
- Goods documents
- Customs
- Transport documents
- Shipping insurance
- Goods inspection
- Packaging
What are some of the Incoterms for road transportation?
- EXW - Ex Works (... named place of delivery)
- FCA - Free Carrier (... named place of delivery)
- CPT - Carriage paid to (... named place of destination)
- CIP - Carriage and Insurance paid to / Carriage paid insured (... named place of destination)
- DAT - Delivered at Terminal (... named terminal in the port/place of destination)
- DAP - Delivered at Place (... named place of destination)
- DDP - Delivered Duty paid² (... named place of destination)
