|WHAT ARE INCOTERMS:
INCOTERMS are a set of three-letter standard trade terms most commonly used in international
contracts for the sale of goods. First published in 1936, INCOTERMS provide internationally accepted
definitions and rules of interpretation for most common commercial terms. INCOTERMS are not updated
yearly. Those searching for 2016, 2015, or 2014 INCOTERMS should be directed towards the latest
2010 version. In the US, INCOTERMS are increasingly used in domestic sales contracts rather than UCC
shipment and delivery terms.
WHAT INCOTERMS DO:
INCOTERMS inform the sales contract by defining the respective obligations, costs and risks involved in
the delivery of goods from the Seller to the Buyer.
WHAT INCOTERMS DO NOT DO:
Constitute a contract;
Supersede the law governing the contract;
Define where title transfers; nor,
Address the price payable, currency or credit terms.
These items are defined by the express terms in the sales contract and by the governing law.