Incoterms

Incoterms

 

The Incoterms, such as EXW, CFR, DAP, for example, provide clarity as to which party should arrange the transport, and which party pays for which part of the transport cost.

Furthermore, and something which is often overlooked, Incoterms also identify at what point in the transport chain the risk transfers from seller to buyer. There are cases where there is an overlap of risk that does not necessarily follow suit with who pays the freight bill.

“Incoterms” is an ICC trademark, registered in the European Union and elsewhere and the text of Incoterms in whole or in part is subject to ICC’s copyright. We can advise you on usage of these terms, but under copyright law are not allowed to reproduce them on our website.

In 2020, new Incoterms will come into force, although some companies may still wish to trade under existing Incoterms for an agreed period of time. It is worth commenting that DAT has been replaced with DPU in the new version.

A very brief synopsis of Incoterms can be found below:

Incoterms 2010

Incoterms 2020

If you would like to look to the official source, you can visit the ICC website.

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