Incoterms

Incoterms, contraction of international commercial terms is the series of terms used in the field of imports and exports, valid all over the world, which defines unambiguously and without the possibility of error every right and duty competent to the various legal entities involved in a transaction. transfer of goods from one country to another.

The transfer of a material from start to finish can be divided into blocks involving:

Sender (the one who exports the goods)
Customs in the country of departure
Port or airport of embarkation
Border that can be geographic or virtual (port and airport are considered state borders)
Means of transport (truck, train, plane, ship) with which the goods are transferred
disembarkation infrastructure (port, airport, bonded warehouse)
Customs of the country of arrival
Consignee (the one who imports the goods).

Every single code coded in the Incoterms clearly defines who has to bear the costs and responsibilities for each part of the transport, for the customs costs in departure and arrival, for the insurance costs. An important part (often overlooked) is the indication, after the initials, of the specific name of the geographical location, border or port / airport to which the code refers.

The Incoterms terms have been ratified by the International Chamber of Commerce (ICC) and originally published in English with authorized translation into 31 other languages by the various national chambers of commerce.

Click on the image to view the incoterms scheme