What are Incoterms?
The International Commercial Terms, or Incoterms, are a registered trademark of the International Chamber of Commerce (ICC) and were first issued in 1936 and were last updated in 2010. The latest version of Incoterms 2020 will come into force on January 1, 2020. Incoterms are used so that buyers and sellers can agree uniformly on the most important terms and obligations relevant to the contract. In this context, Incoterms are primarily intended to regulate the manner of delivery of goods.
What are the main functions of Incoterms?
- Cost distribution
- Distribution of duties
- Transfer of risk
What are the secondary functions of Incoterms?
- Goods documents
- Transport documents
- Shipping insurance
- Goods inspection
What are the Incoterms for road transports, among others?
- EXW - Ex Works / Ex works (... named place of delivery)
- FCA - Free Carrier / Freight Carrier (... named place of delivery)
- CPT - Carriage paid to / Freight paid (... named destination)
- CIP - Carriage and Insurance paid to / Freight paid insured (... named place of destination)
- DAT - Delivered at Terminal (... named terminal at port/place of destination)
- DAP - Delivered at Place (... named place of destination)
- DDP - Delivered Duty paid² (... named destination)