incotermsnek

Incoterms, short for International Commercial Terms, are a series of predefined commercial terms used in international trade to define the responsibilities and risks of buyers and sellers from the point of order confirmation until the point of delivery. They were developed by the International Chamber of Commerce (ICC) and are widely used to ensure clarity and reduce disputes between trading partners. The current version, Incoterms 2020, consists of 11 terms, each with specific rules and definitions.

The terms are designed to cover the entire supply chain, from the seller's factory to the buyer's doorstep. They are typically used in contracts and are often abbreviated to indicate the specific term being used. For example, EXW (Ex Works) means the seller makes the goods available at their premises, while DDP (Delivered Duty Paid) means the seller is responsible for delivering the goods to the buyer's doorstep, including all costs and duties.

Incoterms are not legally binding but are widely recognized and accepted in international trade. They provide a common language for traders, helping to avoid misunderstandings and disputes. However, it's important to note that Incoterms do not cover all aspects of a trade transaction, such as payment terms or quality standards, which should be agreed upon separately.

Incoterms are regularly updated to reflect changes in international trade practices and technologies. The most recent update, Incoterms 2020, was published in 2020 and includes new terms and clarifications to better address modern trade challenges.