Incoterms or
International
Commercial terms are a series of international sales with terms, published
by International Chamber of Commerce (ICC) and widely used in international
commercial transactions. These are accepted by governments, legal authorities,
and practitioners worldwide for the interpretation of most used terms in
international trade. This reduces or removes altogether uncertainties arising
from different interpretation of such terms in different countries. Scope of
this is limited to matters relating to rights and obligations of the parties to
the contract of sale with respect to the delivery of goods sold. They are used
to divide transaction costs and responsibilities between buyer and seller and
reflect state-of-the-art transportation practices. They closely correspond to
the U.N. Convention on Contracts for the International Sale of Goods. The first
version was introduced in 1936 and the present dates from 2000.
As of January 1, 2020 new edition, Incoterms 2020 have effect. The changes
therein affect some of the terms previously listed in section D, which are now
obsolete and have been replaced with new terms:
- DAT (Delivered at Terminal) replaced
with DPU
-
DPU (Delivered at Place Unloaded)
The new terms apply to all modes of transport.
Contents
- 1 Group E -
Departure
-
2 Group F - Main
carriage unpaid
-
3 Group C - Main
carriage paid
-
4 Group D -
Arrival
-
5 Summary of terms
NOTE: The following
information refers to Incoterms 2010 and is now replaced with different
information in Incoterms 2020.
For a given term, "Yes" indicates that the seller
has the responsibility to provide the service included in the price.
For given term "No" indicates it is the buyer's
responsibility.
Insurance is not included in all other terms, according to the news in Incoterm
2020, it is negotiable.
Insurance is included only in CIF and CIP terms, it has to be seller’s
responsibility.