Incoterms

Incoterms (International Commercial Terms) are globally recognized trade terms published by the International Chamber of Commerce (ICC) that outline the responsibilities of buyers and sellers in the transportation and delivery of goods. These terms clarify who is responsible for shipping, insurance, customs clearance, and other logistics tasks, as well as when risk and ownership transfer from the seller to the buyer. For example, under "FOB" (Free On Board), the seller is responsible for delivering goods to a port and loading them onto a vessel, after which the buyer assumes responsibility for shipping and risks. Incoterms help reduce misunderstandings and disputes in international trade by providing clear guidelines and a shared understanding of contractual obligations, ensuring smoother transactions and more efficient global supply chains.