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Glossary

Incoterms®

Incoterms® are an agreement between the seller and the buyer, defining who arranges for the payment and handling of goods.

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What Are Incoterms®?

Incoterms® are terms of sale that define who arranges for the payment and handling of the goods during shipping, from the moment the goods leave the seller’s door, up until their arrival at the buyer’s final destination.

“Incoterms®” is shorthand for “International Commercial Terms” as defined by the International Chamber of Commerce and they are revised from time to time.

On September 2019, the ICC published the latest edition of the Incoterms®, commonly known as “Incoterms® 2020," which brought a few material changes to the Incoterms®. Beginning on 1 January 2020, the Incoterms® 2020 will be applied to all contracts of sale unless the parties specify that they would like to continue using Incoterms® 2010. The switch to Incoterms® 2020 is NOT mandatory, so it’s possible that some clients will continue to use Incoterms® 2010.

Incoterms® are an agreement between the seller and the buyer.

It is ultimately up to the buyer and the seller to agree on each party's responsibility of cost and risk before the shipment begins.

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For more information about Incoterms®, see A Quick Guide to Incoterms®.

Learn More 

Related Help Articles

A Quick Guide to Incoterms®

What are Common Incoterms® for US Export Shipments?

Related Glossary Terms

Importer of Record 

Bill of Lading (BOL or B/L) 

Resources

Incoterms® Explained

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