Incoterms Tools


Incoterms are short for International Commercial Terms and each one consists of three letters. These three letter terms are understood globally between buyers and suppliers.

 

Incoterms are published by the Chamber of Commerce and relate to international commercial law. INCO terms clearly define which party is responsible for which element of the logistical operation and where risk transfers from one party to another.

 

The advantage of Incoterms is that they are universally understood and there is no need for complex negotiations regarding transport and logistics when engaging with global suppliers.

 

There are 11 commonly used Incoterms which are explained visually in the Incoterms model.

 

CIPS members can sign in to access the tools below to identify when risk passes from Seller to Buyer.