International Commercial Terms — a standardized set of trade terms published by the International Chamber of Commerce (ICC) defining the responsibilities of buyers and sellers.
Incoterms® (International Commercial Terms) are internationally recognized rules that define the responsibilities of sellers and buyers for the delivery of goods under sales contracts. They specify who is responsible for paying for and managing the shipment, insurance, documentation, customs clearance and other logistical activities. The current version is Incoterms® 2020, published by the ICC.
The seller makes the goods available at their premises. The buyer assumes all risks and costs from that point.
The seller delivers the goods to the carrier named by the buyer at an agreed place. Risk transfers at delivery.
The seller pays for carriage to the named destination. Risk transfers when goods are handed to the first carrier.
Like CPT, but the seller must also procure insurance covering the buyer's risk during transport.
The seller delivers the goods to the named destination, ready for unloading. Import customs clearance is the buyer's responsibility.
The seller delivers and unloads the goods at the named destination. This is the only Incoterm where the seller is responsible for unloading.
Maximum obligation for the seller. They bear all costs and risks to the destination, including import customs clearance and duty payment.
The seller delivers the goods alongside the vessel at the named port of shipment. The buyer bears all costs and risks from that point.
The seller delivers the goods on board the vessel at the named port of shipment. Risk transfers once the goods are on board.
The seller pays costs and freight to the named destination port. Risk transfers when goods are on board the vessel at the port of shipment.
Like CFR, but the seller must also procure minimum marine insurance covering the buyer's risk during transport.
Our team of customs brokers can advise you on the best terms for your shipments.