Incoterms (or International Commercial Terms) are standard sets of international rules guiding the interpretation of the most widely used terms in commercial transactions or procurement processes. These rules clearly communicate the following key points:
- Separation of transportation costs incurred by the seller and the buyer during cargo delivery.
- The point in the journey when risk of loss of or damage to goods transfers from the seller to the buyer.
- Cargo delivery date, i.e., the moment when the cargo is actually transferred by the seller to the buyer or to his representative, for example, a shipping company – which means the moment when the seller is expected to perform his obligations under the terms of delivery.
The latest Incoterms version – Incoterms 2010 – was published in September 27, 2010, with updated trade rules, and entered into force on January 1, 2011.
DAS GLOBAL LOGISTIK LLC has developed a schematic diagram of Incoterms 2010 for your convenience and better understanding.