Incoterms




Incoterms, also known as International Commercial Terms, are a series of pre-defined commercial terms that are published by ICC, International Chamber of Commerce, regarding international commercial law. It is a series of three-letter trade terms which relates to common contractual sales practices. Incoterms rules are intended basically for clear communication of costs, tasks and risks associated with international or global transportation and delivery of goods.
It informs sales contracts which defines respective obligations, risks and costs involved in the goods delivery from seller to buyer but they do not themselves conclude a contract, currency or credit terms, determine price payable, govern contract law or define where title to goods transfers.
These rules are accepted by legal authorities, governments and practitioners all around the world for the interpretation of most commonly used terms in international trade. It is intended to reduce uncertainties arising altogether from different interpretation of rules in different countries. Also, it is a registered trademark of the ICC.
New Incoterms are expected to appear by last quarter of the year 2019 and all set to enter into force on 1st January 2020.



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