Incoterms are a series of international sales terms by the International Chamber of Commerce (ICC). It is widely used in international commercial transactions to define the rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold in international transactions.
With Incoterms, it allows trading across the globe to be straightforward and effortless. Overall, this will minimise international trade conflict and misunderstanding and disputes, also overcome uncertainty and diversities of interpretation.
Incoterms are mainly used to determine who (Buyer/ Seller) is responsible for:
EXW – Ex Works (named place)
FOB – Free on Board (named loading port)
FOB does not include the transportation of the goods – Certain clients would want to arrange using their own forwarder.
CIF – Cost, Insurance and Freight (named destination port)
DDP – Delivered Duty Paid (named destination place)
Prices of goods vary due to the different terms used in the transaction- DDP pricing is higher than FOB prices due to the transportation included etc.
DDU – Delivered Duty Unpaid (named destination place)
Update: DDU – Direct Duty Unpaid is no longer used under Incoterms 2010.
The other Incoterms are:
ODM always states the Incoterms when sending quotations to clients, informing them the term they are paying for when an order is placed.
ODM has been in the promotional product industry for over 15 years and is well-experienced in producing and delivering high-quality custom promotional merchandise. We have a committed team of merchandisers that will ensure effective logistics snd shipping management with proper planning management of the key supply chain stages. Therefore, making sure that the consignment is delivered to you efficiently. Should you have any queries, do not hesitate to contact us.
Learn more about the responsibility of costs for each incoterm here!
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dear concern,
i want to impprov my knowlege of export import, shipping , and logistics industry ,i have done in pg programe in marketing & now working in freight forwarding company which is located in mumbai
kindly suggest me for referrence book for the customs , central exicse, and related web site for the same