Incoterms are the set of international rules, agreed and revised by the International Chamber of Commerce (ICC), which help us to understand the terms in which a contract for the international sale and purchase of goods has been concluded.
Through the Incoterms we will establish criteria on the distribution of costs and the transfer of risks. Incoterms are part of, and should be considered as a price clause since their term allows us to determine the total cost of the operation.
Through the Incoterm, we will determine:
– Scope of the price of the operation
– When and where the transfer of risks on the goods takes place, from the seller to the buyer.
– The place where the goods are to be delivered
– Documents to be processed by each party and their cost
– Who arranges and pays the insurance of the goods.