Promulgated by the International Chamber of Commerce, Incoterms® are a set of international standards for the uniform interpretation of common contract clauses in international trade. Incoterms® 2020 comprises the latest revisions and should be used exclusively starting January 1, 2020.
Incoterms® stands for “International Commercial Terms” and are internationally recognized terms of agreement for buying and selling goods across the globe. Incoterms® are agreed upon between the seller and buyer in regards to when the risk and responsibility of the goods and transport are transferred. Incoterms® are not law nor binding. They are only used as a guide and represent different ways international shipments are bought and sold.
When buying goods or importing into the United States, we recommend F Terms. When selling goods or exporting out of the United States, we recommend C Terms.
Rules of Thumb
- The party responsible for transport arrangement and payment of transportation charges is in control of the cargo
- The more responsibility the party has, the more control they have