Looking for an Incoterms overview? You’ve come to the right web page!
- What are Incoterms and why are they needed? Incoterms® are key elements of international contracts of sale intended to guide parties with respect to carriage of goods from seller to buyer along with export and import clearance. Incoterms also explain the division of costs and risks between the two parties and at what point the responsibility shifts from seller to buyer. Incoterms allow electronic communication, such as EDI and electronic documents as long as both parties agree. They are not laws enacted by governments, but rather, rules agreed to by parties to a contract.
- What is the latest version of Incoterms? Incoterms® 2010 was launched in September 2010 and became effective January 1, 2011. View the list of existing Incoterms here – which are broken down into four color-coded categories for easy navigation, reading and understanding.
- What is included in an Incoterm? Incoterms have two components – the term’s name and a named place. It is incomplete if one is missing. Example: FCA, XYZ Cargo Terminal, Chicago O’Hare International Airport (ORD), USA.
- Who created Incoterms? Incoterms were developed and introduced in 1936 by the International Chamber of Commerce.
Let AIT be your resource for Incoterms. Our international experts extend their understanding of Incoterms to assist with defining the difference in terms applied to sea or inland waterway transport (FAS, FOB, CFR and CIF) and those applicable to all modes: air, ground, rail and ocean. Speak with an AIT operations expert today for a more in-depth Incoterms overview.