Incoterms
Category: other
International commercial terms defining responsibilities between buyers and sellers in trade.
Incoterms (International Commercial Terms) are standardized trade terms published by the International Chamber of Commerce (ICC) that define the responsibilities, costs, and risks between buyers and sellers in international trade. The current version is Incoterms 2020, with 11 terms including EXW, FOB, CIF, DDP, and DAP. Understanding Incoterms is essential for cross-border e-commerce sellers to manage shipping costs, insurance, customs clearance, and risk allocation.
Examples
- • A seller quoting EXW (Ex Works) means the buyer is responsible for all costs and risks from the seller's factory to the final destination.
- • FOB Shenzhen means the seller delivers goods to Shenzhen port and loads onto the vessel; the buyer pays freight and insurance from that point.
- • DDP (Delivered Duty Paid) is preferred by e-commerce buyers as the seller handles all costs including import duties and taxes.