What are Incoterms®?

Incoterms® is short for International Commercial Terms and are a set of 11 rules defining who's responsible for what during international transactions. Find out what they outline and how they help avoid costly misunderstandings between the sender and receiver.

What do Incoterms® outline?

They summarise the tasks, responsibilities and risks relating to an international shipment.

They define what the sender and receiver agreed upon before shipping and prevent misunderstandings regarding the shipping costs – like finding out the sender didn’t insure the goods or having to pay the shipping costs when they arrive.

Where do I state them?

They’re a requirement on every commercial invoice.

What are the different types?

Incoterms® have a number of rules to choose from. And the terms can differ a lot. For example, Ex Works states the buyer or receiver is responsible for all costs and risks during the shipping process. While Delivered Duty Paid, known as DDP, states the seller or sender is responsible for the costs and risks.


Why are they important?

By agreeing on these terms, you know who’s paying for what, which lowers the risk of costly misunderstandings between the sender and receiver.

This website is designed to provide general information related to shipping. If you’re unsure of the shipping requirements that apply to you, check with your carrier. Make sure to check the rules and regulations of the country you’re shipping from and to prior to shipping. You can find this information on government websites.

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