Incoterms - TopEuro Global Freight Forwarding

What are Incoterms?

Incoterms are international commercial terms developed by the International Chamber of Commerce to clarify the responsibilities and obligations of buyers and sellers in goods transportation, insurance and customs clearance.

Incoterms 2020

Incoterms 2020 is the latest version of international trade terms, effective from January 1, 2020. The new version better adapts to modern trade practices, especially the use of electronic documents.

Incoterms divide trade terms into four major categories:

E terms - Seller delivers at own location
F terms - Seller delivers to buyer's specified transport
C terms - Seller arranges transport and pays freight
D terms - Seller bears all responsibility for goods reaching destination

Importance of Choosing Right Terms

Clarify responsibilities and obligations of both parties

Avoid trade disputes and additional costs

Determine insurance and transportation liability demarcation

Help calculate accurate trade costs