An Overview of Incoterms
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Incoterms are international sales conditions that define various aspects of handling and paying for the shipping of goods from the point of origin to the point of destination.
"Incoterms" is shorthand for "International Commercial Terms" according to the International Chamber of Commerce.
In EXW, the seller makes the goods available at their location. The buyer is responsible for all costs and risks from that point.
Buyers and sellers commonly refer to Incoterms2010 and Incoterms2020.
Incoterms 2020 introduced changes, including a new option for the buyer to direct the carrier to issue a transport document at their expense and risk. The seller's responsibility for export clearance in the FAS (Free Alongside Ship) clause.
Incoterms play a crucial role in international trade by clarifying responsibilities, risks, and instructions in the shipment of goods.
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