Incoterms
International rules clarifying seller/buyer obligations in trade shipments.
Detailed Description
Incoterms
What are Incoterms?
Incoterms are standardized trade terms developed by the International Chamber of Commerce to define the responsibilities of buyers and sellers in international trade.
What is the purpose of Incoterms?
The purpose of Incoterms is to provide a common framework for international trade, reducing misunderstandings and disputes between trading partners.
How are Incoterms categorized?
Incoterms are categorized into two groups based on transport mode: those applicable for any mode and those specifically for sea and inland waterway transport.
What is the significance of using Incoterms in contracts?
Using Incoterms in contracts provides a legal reference for disputes, clarifying responsibilities and obligations for shipping and delivery.
How can businesses choose the right Incoterm?
Businesses should assess factors like the nature of goods, shipping method, and desired control level to select the most suitable Incoterm.