What is Incoterms used in export and import?

Incoterms, or International Commercial Terms, are a set of standardized trade terms that are widely used in international trade. These terms define the responsibilities of the buyer and seller in relation to the delivery of goods from the point of origin to the final destination. Incoterms are published by the International Chamber of Commerce (ICC) and are used to help traders avoid misunderstandings and disputes by clarifying the obligations of each party with respect to the delivery of goods. Incoterms are used in both export and import transactions and are an essential element of international trade contracts. They help to ensure that goods are delivered to the right place, at the right time, and in the right condition.


What are the 11most used Incoterms?

The 11 most commonly used Incoterms (International Commercial Terms) are:


1. EXW (Ex Works)

2. FCA (Free Carrier)

3. FAS (Free Alongside Ship)

4. FOB (Free on Board)

5. CPT (Carriage Paid To)

6. CIP (Carriage and Insurance Paid To)

7. DAT (Delivered at Terminal)

8. DAP (Delivered at Place)

9. DDP (Delivered Duty Paid)

10. FPT (Free Alongside Ship)

11. FOT (Free on Truck)

Incoterms are standardized trade terms that are widely used in international trade transactions. They define the responsibilities of buyers and sellers in relation to the delivery of goods, including the place of delivery, the transfer of risks, and the payment of transportation costs.



What are the 7most used Incoterms?


The Incoterms (International Commercial Terms) are a set of standardized trade terms that are widely used in international commercial transactions. There are 11 Incoterms in total, but the 7 most commonly used ones are:


EXW (Ex Works): The seller makes the goods available at their own premises or at another named location. The buyer is responsible for all transportation costs and risks associated with getting the goods to their final destination.


FOB (Free On Board): The seller is responsible for delivering the goods to the named port of shipment, at which point the buyer becomes responsible for the costs and risks associated with transporting the goods to their final destination.


CIF (Cost, Insurance, and Freight): The seller is responsible for delivering the goods to the named port of destination, and for arranging and paying for the cost of insurance and transportation of the goods. The buyer is responsible for paying the cost of the goods, as well as any duties and taxes at the destination.


CFR (Cost and Freight): Similar to CIF, but the seller is not responsible for arranging or paying for the insurance of the goods.


CPT (Carriage Paid To): The seller is responsible for delivering the goods to the named place of destination and for paying the cost of transportation. The buyer is responsible for paying the cost of the goods and any duties and taxes at the destination.


CIP (Carriage and Insurance Paid To): Similar to CPT, but the seller is also responsible for arranging and paying for the insurance of the goods.


DAP (Delivered at Place): The seller is responsible for delivering the goods to the named place of destination, but the buyer is responsible for paying the cost of transportation and any duties and taxes at the destination.


It's important to note that the Incoterms do not define who pays for the goods, but rather specify the responsibilities of the seller and buyer for the transportation and delivery of the goods.