International Shipping

International Shipping

Ports of Entry

Foreign Trade Zones

Freight Forwarders

Embargo

Incoterms

Incoterms

Incoterms are standard trade definitions most commonly used in international sales contracts. Devised and published by the International Chamber of Commerce, they are the heart of world trade.

Incoterms define the point at which ownership of goods transfers from seller to the buyer. At this specific defined point the goods are handed to the Buyer by the Seller and therefore risk and the need for insurance, is also transferred. Before this point the Seller owns the goods, bears the risk and need insurance. After this point the Buyer takes ownership (and risk) and then needs insurance.

Guidelines to Using Incoterms

• Always specify which terms are applicable (i.e. FAS Incoterms 2000 as opposed to Incoterms 1990).

• Urge your trading partners to confirm their acceptance of the specified term in writing.

• Draw up a check list of your duties and rights under the selected term and check that every intended or completed transaction conforms to this list, and that nothing is omitted.

• Request your trading partner to do the same, and exchange this information with them.

• Never instruct the carriers of any third party to do or omit anything on the basis of the Incoterms.

• Inform your bank and insurance company which Incoterm(s) have been selected for your business.

Click here to view a list of Incoterms. These definitions are the most common uses of each term, but are not the only way these terms are used. Pay close attention to the location listed for each term, as this indicates where payment details change from Shipper to Consignee.

Web links to Incoterms

Global Logistics Specialist - INCOTERMS

An interactive online training course on INCOTERMS and their meaning

Incoterms 2000

Graphically displayed explanations and definitions of Incoterms

INCOTERMS 2000

Definitions and explanations offered by the International Chamber of Commerce

Incoterms 2000

Explanations of the latest INCOTERMS

Incoterms Briefings

Background articles about the use of Incoterms

Mediterranean Trade Board - Incoterms

Listing of INCOTERMS for trade

NextLinx - INCOTERMS

NextLinx's multi-lingual definition of INCOTERMS