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Incoterms

PRODUCT FEATURES
The Incoterms rules are the world’s essential terms of trade for the sale of goods. Whether you are filing a purchase order, packaging and labelling a shipment for freight transport, or preparing a certificate of origin at a port, the Incoterms rules are there to guide you. The Incoterms rules provide specific guidance to individuals participating in the import and export of global trade on a daily basis.
Incoterm overview
Exports are goods that are sold in a foreign market, while imports are foreign goods that are purchased in a domestic market. Exports and imports are important for the development and growth of national economies because not all countries have the resources and skills required to produce certain goods and services.
What are Incoterms
Incoterms – International Commercial Terms
To facilitate commerce around the world, the International Chamber of Commerce (ICC) publishes a set of Incoterms, officially known as international commercial terms.
Incoterms - Functions and importance
Obligations related to buyer and seller
Risk - Where the risk transfers from seller to buyer
Costs – Which party is responsible for which course
Cost Insurance and Freight
The difference between CIF and CFR is that while the risk of loss or damage at delivery becomes the buyer’s, the seller is obliged to take out insurance for that risk and provide the buyer with a document which allows the buyer to claim against that insurance. This typically will be an original insurance policy covering just that transaction or a certificate issued by the insurer under the seller’s existing open marine policy.