For those who export and import commodities to and from a number of countries or even interstate or interprovincial boundaries, INCOTERMS (International Commercial Terms) are used on a daily basis and, at a minimum, it is important to have a basic knowledge of the terms and their implication. Every ten years the INCOTERMS listing is revamped and published to reflect consideration of the latest adjustments and practices from the trade. “Incoterms®” is a trademark of the International Chamber of Commerce and includes the transportation rights and responsibilities of the parties involved in a transaction.
INCOTERMS help to determine how costs and risks are allocated to buyers and sellers. In our industry, they are normally included in a Bill of Lading.
It is important to know that on January 1, 2020, the new INCOTERMS 2020 will come into effect and will contain the International Chamber of Commerce (ICC) rules for use of the 11 Incoterms® trade terms.
The new INCOTERMS 2020 edition is available online and can be purchased on the following website: