The acronym INCOTERMS stands for International Commercial Terms of Trade and are established by the International Chamber of Commerce.
INCOTERMS were first established in 1936 and set out the terms of trade between a buyer and seller regarding who is responsible for the costs and risks of the goods as they move from the seller to the buyer. They are an international standard and are used world-wide.
The specific terms of trade you agree to with the buyer of your products will be the result of negotiation. On one end the seller would like the purchaser to assume risks and costs as soon as the goods leave his factory (exworks), while the buyer does not want to assume those risks and costs until the goods are received at his warehouse (delivered duty paid). Depending on the ability of each party to influence that decision will determine at which stage the incoterms are used.
- International Chamber of Commerce Bookstore
- Understanding INCOTERMS 2010
- Seminar: Are You Thinking of Exporting?
- Recommended Trade Links
- How TRADESTART Can Help