Incoterms are a set of internationally recognized trade terms published by the International Chamber of Commerce (ICC). They’re typically updated every decade, with the latest version being Incoterms 2020. Incoterms 2020 are the most up-to-date terms and the ones you should use for your international shipments.
Incoterms define the responsibilities of buyers and sellers when it comes to costs, risks and tasks associated with an international shipment. They eliminate confusion and ensure everyone is on the same page, from the moment the goods leave the factory to their arrival at the final destination. Incoterms are known and implemented by all major trading nations.
When a seller and a buyer agree to use a particular Incoterm, each accepts the corresponding obligations and responsibilities as defined under that particular term. Incoterms reduce the risk of legal complications by clearly defining the role of buyers and sellers in an international transaction.
Below are the 11 Incoterms 2020 rules that are currently in use. (We’ve written separate articles on each term, along with a helpful overview of all 11 terms in our article An Introduction to Incoterms.)
By familiarizing yourself with Incoterms, you'll be better equipped to navigate the complexities of international trade.
Now that you’re in on the myth of Incoterms 2024, we have a sure way to keep you from falling for what will likely be next year’s international trade rumor: Incoterms 2025. Check out the resources below and subscribe to this blog—we’ve been writing about Incoterms for decades and will surely let you know the next time these trade terms get an update.
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