Incoterms make up the set of international rules agreed and revised by the International Chamber of Commerce, helping us to understand the terms according to which an international goods purchase-sale agreement has been signed.
Through Incoterm we can establish certain criteria regarding the distribution of costs and transfer of risks. The Incoterms form part of – and should be considered to be – the price clause, given that they enable us to determine the total cost of the operation.
Through Incoterm we can establish:
– The price of the operation
– When and where the transfer of risks regarding the goods passes from the seller to the buyer
– The place where the goods must be delivered
– Documents to be processed by each party and their cost
– Who contracts and pays the goods insurance
The most habitual Incoterms include the following: