International Commercial Trade

Incoterms (International Commercial Terms) are a set of globally recognized rules that define the responsibilities of buyers and sellers for the delivery of goods in international (and domestic) trade contracts.

They standardize the terms of trade by specifying:

  • Who is responsible for transporting the goods
  • Who bears the cost at each stage of the journey
  • When the risk transfers from seller to buyer
  • Who handles customs clearance and insurance

Incoterms were published and are maintained by the International Chamber of Commerce (ICC), based in Paris, France.

  • First introduced in: 1936
  • Latest version: Incoterms® 2020

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Author: Zeya Rahman, Demand & Logistics Division Manager

Course Information

Course Instructor

Jessa Marie Cruz Bansil Author

New Section

Incoterms’ Purpose and Importance
Lesson 1 of 14 within section New Section. You must enroll in this course to access course content.
Classification of Incoterms® 2020
Lesson 2 of 14 within section New Section. You must enroll in this course to access course content.
Ex-Works
Lesson 3 of 14 within section New Section. You must enroll in this course to access course content.
FCA – Free Carrier
Lesson 4 of 14 within section New Section. You must enroll in this course to access course content.
FAS – Free Alongside Ship
Lesson 5 of 14 within section New Section. You must enroll in this course to access course content.
FOB – Free On Board
Lesson 6 of 14 within section New Section. You must enroll in this course to access course content.
CPT – Carriage Paid To (Named Destination)
Lesson 7 of 14 within section New Section. You must enroll in this course to access course content.
CFR – Cost and Freight
Lesson 8 of 14 within section New Section. You must enroll in this course to access course content.
CIP – Carriage and Insurance Paid
Lesson 9 of 14 within section New Section. You must enroll in this course to access course content.
CIF – Cost, Insurance, and Freight
Lesson 10 of 14 within section New Section. You must enroll in this course to access course content.
DAP – Delivered at Place
Lesson 11 of 14 within section New Section. You must enroll in this course to access course content.
DPU – Delivered at Place Unloaded
Lesson 12 of 14 within section New Section. You must enroll in this course to access course content.
DDP – Delivered Duty Paid
Lesson 13 of 14 within section New Section. You must enroll in this course to access course content.
Incoterms® 2020 Rules Responsibility Quick Reference Guide
Lesson 14 of 14 within section New Section. You must enroll in this course to access course content.