‘Incoterms’ is the short and snappy way of saying International Commercial Terms. First published way back in 1936, they’re a set of 11 rules defining who’s responsible for what during international transactions.
Because they’re known and accepted from Austin to Zanzibar. A requirement on every single commercial invoice, they greatly reduce the risk of potentially costly misunderstandings.
Incoterms spell out all the tasks, risks and costs involved during the transaction of goods from seller to buyer.
Risk transfers from seller to buyer:
At the seller’s warehouse, offices or wherever the goods are being collected from.
When goods are ready for unloading at the agreed address
When goods are ready for unloading at the agreed address.
When the buyer’s carrier receives the goods.
At the terminal.
When the buyer’s carrier receives the goods.EXW – Ex-Works.
When goods have been delivered next to the ship.
When goods have been delivered onto the ship.
When goods are on the ship.
When the goods are on the ship.