Incoterms are terms established to agree on the responsibilities of the exporter and the importer when carrying out an international transaction. These terms delimit the conditions of the operation, both in terms of costs and the responsibility assumed by each party.
Incoterms is the abbreviation for "international trade terms". They were created in 1936, by the International Chamber of Commerce (ICC). ACurrently, they constitute a set of 11 standards. They are an indispensable requirement in any commercial invoice, thus reducing the risk of confusion between the parties, thanks to a detailed description of the tasks, risks and costs involved in each of the parties.
Markets are moving forward and Incoterms are also being updated. This year 2020, some aspects of certain Incoterms have undergone variations. We tell you about them in this article.
They can be classified on the basis of whether the operation's transportation is a combination of varios means (maritime, air, land, rail, etc.). In these cases, it is called multimodal, and may include these types:
- EXW (Ex Works).
- FCA (Free Carrier).
- CPT (Carriage Paid To).
- CIP (Carriage and Insurance Paid To).
- DPU (Delivered at Place Unloaded).
- DAP (Delivered At Place).
- DDP (DDP Delivery Duty Paid).
