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Dictionary

Incoterms

Also Known As: International Commercial Terms

Incoterms define who is responsible for shipping, costs, and risk during international deliveries.

They are standardised rules used in global trade to define responsibility between buyer and seller.


They determine:


• Who pays for shipping
• Who handles customs
• Where responsibility transfers


Common examples include:


• DDP (Delivered Duty Paid)
• DAP (Delivered At Place)
• EXW (Ex Works)


Choosing the correct Incoterm ensures clear responsibility and avoids disputes.

Related Terms

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