INCOTERMS

INCOTERMS, short for International Commercial Terms, are a set of rules established by the International Chamber of Commerce to clarify the responsibilities of buyers and sellers in international trade. They define who is responsible for shipping costs, insurance, and risk at different stages of the shipping process. By using INCOTERMS, businesses can avoid misunderstandings regarding duties and expenses, ensuring smoother transactions. Common terms include FOB (Free On Board) and CIF (Cost, Insurance, and Freight), which specify who handles shipping and when the responsibility transfers from seller to buyer.