Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) that are widely used in International commercial transactions. They are a series of three-letter trade terms (for eg. CIF, FOB, CFR, DDP, etc.) related to common contractual sales practices. The Incoterms rules are intended primarily to clearly communicate the roles, costs, and risks associated with the transportation and delivery of goods.
The Incoterms rules are accepted by governments, legal authorities, and practitioners worldwide for the interpretation of most commonly used terms in international trade. They are intended to reduce or remove uncertainties arising from different interpretation of the rules in different countries.
Did you know that – “The Incoterms listed in the above table are bifurcated into 2 categories – Incoterms for any Mode of Transport and Incoterms for Sea and Inland Waterway Transport”!!!