I / INCOTERMS
The International Chamber of Commerce (ICC) publishes Incoterms, or international commercial terms, to facilitate global commerce. By clarifying the obligations of buyers and sellers, Incoterms reduce confusion in foreign trade contracts.
Domestic and international traders often use the terms as a shorthand to clarify the specifics of their business agreements. In some countries, transportation by land or sea is covered, while only transportation over water is covered in others.
In short, These terms, which have been codified by the International Chamber of Commerce (ICC), are used in foreign trade contracts to specify who bears the costs and at what specific point they occur.
Some common examples of Incoterms are:- EXW: Ex Works
- FCA: Free Carrier
- CPT: Carriage Paid To
- CIP: Carriage and Insurance Paid To
- DAP: Delivered at Place
- DPU: Delivered at Place Unloaded
- DDP: Delivered Duty Paid
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