“Incoterms” is an acronym standing for international commercial terms.
The International Chamber of Commerce (ICC) has released the new Incoterms 2020 regulations that define responsibilities of buyers and sellers operating in the international trade system. Delivery conditions were reviewed by 500 experts from more than 40 countries.
Each party involved in the logistics chain must have a clear understanding of the role and responsibilities they have, in order to ensure to the clients planned and coordinated activities with maximum efficiency. For over 80 years, Incoterms rules have played a major role in this process.
The Incoterms rules feature abbreviations for terms, like FOB (“Free on Board”), DAP (“Delivered at Place”) EXW (“Ex Works”), CIP (“Carriage and Insurance Paid To”), which all have very precise meanings for the sale of goods around the world.
These terms hold universal meaning for buyers and sellers around the world.