What are INCOTERMS?
Incoterms are standard trade definitions commonly used in international sales contracts. Devised and published by the International Chamber of Commerce.
Best known Incoterms are EXW (Ex works), FOB (Free on Board), CIF (Cost, Insurance and Freight), DDU (Delivered Duty Unpaid), and CPT (Carriage Paid To).
ICC introduced the first version of Incoterms – short for “International Commercial Terms” – in 1936. ICC expert lawyers and trade practitioners have updated them six times over the years.
Versions of Incoterms preceding the 2000 edition may still be incorporated into future contracts if the parties so agree. However, this is not recommended because the latest version is designed to bring Incoterms into the latest developments in commercial practice.
The English text is the original and official version of Incoterms 2000, which have been endorsed by the United Nations Commission on International Trade Law (UNCITRAL). Authorized translations into 31 languages are available from ICC national committees.
ICC now publishes a brief introduction to Incoterms on a new special section of its website. The section does not provide all the answers but will help understanding of what Incoterms are for and how they are organized. We describe how to order Incoterms in the original English version and many of the world’s main languages from ICC Publishing in Paris and New York, or ICC national committees around the world.
Courtesy of Wooden Crates Organization