ICC Incoterms: Who Qualifies and What You Get
Learn how these standardized trade rules help merchants avoid shipping disputes and manage liability during international shipping.
Incoterms are a set of standardized trade rules used to clarify the responsibilities of buyers and sellers during international shipping.
Who it's for
This is for merchants and businesses involved in international shipping and global trade.
What you get
You get a standardized way to define the responsibilities of both the buyer and the seller. Using these terms helps you avoid disputes by clearly outlining who is responsible for costs, risks, and logistics during the shipping process.
What it costs you
It is free to learn how these rules work. However, to actually use them in your business, you will need to spend time and resources updating your commercial contracts to include the correct terms.
The catch to know
The biggest risk is using the wrong term for your specific shipment. Choosing the incorrect term can unexpectedly make you legally liable for shipping damages or extra costs that you thought were someone else's responsibility.
How to apply
- Research the specific trade rules that fit your shipping needs.
- Review your existing sales and purchase contracts.
- Update your documentation to include the correct, standardized terms.
- Visit the official portal for more details: https://iccwbo.org/resources-for-business/incoterms-rules/