Incoterms® 2020
What are Incoterms®?
Incoterms® are the selling terms that the seller and buyer of goods both agree
to during international transactions. These rules are accepted by
governments and legal authorities around the world. Understanding
Incoterms® is a vital part of International Trade because these trade terms
clearly state which tasks, costs, risks, and the delivery of goods are associated
with the buyer and the seller in the contract of sale.
Why are Incoterms® vital in International Trade?
Incoterms® are referred to as International Commercial Terms. They are a set of
rules published by the International Chamber of Commerce (ICC), which relate
to International Commercial Law. According to the ICC, Incoterms® rules provide
internationally accepted definitions and rules of interpretation for most
common commercial terms used in contracts for the sale of goods’.
All International purchases will be processed on an agreed Incoterm to define
which party legally incurs costs and risks. Incoterms® will be clearly stated on
relevant shipping documents.
Ben Thompson.//2024.//Incoterms® 2020 Explained – The Complete Guide
.//Available: https://incodocs.com/blog/incoterms-2020-explained-the-completeguide/./10/07,2024