Incoterms, short for International Commercial Terms, are standard terms used in import and export contracts to define the responsibilities and liabilities of parties involved in the shipping of commercial goods.
Most of the incoterms apply to all modes of transport, but some are specific to ocean freight shipping.
Each incoterm specifies the responsibilities of the seller and buyer regarding logistics, transport, import customs and duties, and unloading costs. It also defines who is liable for cargo damages or losses.
Incoterms are updated periodically, with the latest update in 2020. It is important to understand each incoterm as they carry legal weight.
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