Glossary of terms badge
RESOURCES
Map of the world
HomeResourcesKnowledge BaseIncoterms Explained
Keep informed with all the latest industry news View the latest shipping schedules Book your freight online
Resources
Knowledge Base
FAQs
Why Use A Forwarder?
Headings
Incoterms Explained
What Are Incoterms?
Who Uses Incoterms?
Why Are Incoterms Important?
History
Tell Me More
Where Can I Find Incoterms?
Need Assistance?

Incoterms Explained


Negotiating the terms of sale of commercial goods is critical to the success of any business. Whether it be domestic or international transactions, Incoterms offer a standardised array of trading rules designed to simplify the process.

What Are Incoterms?


Developed by the International Chamber of Commerce (ICC), Incoterms are a series of international trading terms defining costs and responsibilities between the buyer and seller of commercial goods. An acronym for INternational COmmerce TERMS, Incoterms rules are contractually binding, widely recognised by governments, legal authorities and agencies across the globe. They are intended to minimise or eliminate any uncertainties which can otherwise arise in the interpretation of rules, standardising definitions and clearly communicating tasks, costs and liabilities between trading parties.

Incoterms consist of a series of three-letter abbreviations for common terms of trade (i.e. FOB - Free On Board). Each provides contrasting emphasis on the buyer or seller for the provision of tasks (i.e. delivery to destination) and associated costs.


Who Uses Incoterms?


Primarily the buyer and seller of goods utilise Incoterms for the negotiation of domestic and international trade contracts. This extends to third parties for the provision of associated services, such as financial institutions, freight forwarders, carriers, lawyers, etc.


Why Are Incoterms Important?


Incoterms rules are designed to simplify trade contracts and reduce the likelihood of disputes between the buyer and seller of goods. Where challenges may otherwise exist, Incoterms offer an internationally recognised standard which transcends language, customs and legal systems. This saves time and effort throughout the sales negotiation process, removing the need for customised and lengthy trade contracts defining obligations which are predefined within the Incoterms rules.


History


Initially published in 1936, Incoterms rules are periodically revised to keep pace with developments in international trade. Incoterms 2010 is the latest version, which launched in September 2010 and came into effect on the 1st January 2011. Contracts made under previous versions (i.e. Incoterms 2000) remain valid beyond this date.


Tell Me More


The International Chamber of Commerce has produced a brief video to help explain Incoterms and their use.



Where Can I Find Incoterms?


Incoterms 2010 (the latest version of Incoterms rules) are available for purchase from the International Chamber of Commerce. Champion Freight offers a free reference chart and glossary summarising costs, risks and responsibilities based on the 11 various Incoterms and each step of the logistics journey.


Need Assistance?


Have a question relating to Incoterms? Contact Champion Freight for further assistance and advice.
Copyright ©  Champion Freight Top  |  Home  |  Site Map  |  Terms  |  Privacy
Mobile Compatible Mobile QR Code
Instagram Icon YouTube Icon LinkedIn Icon Twitter Icon RSS Icon Facebook Icon Google+ Icon
Sea Freight 101
Shipping A Vehicle
Black Champion Freight Logo Slogan Yellow
Incoterms Explained
Freight quote badge
Lost Bill Of Lading
Login  |  Register

Menu Bar HTML Code Css3Menu.com