Agreeing Logistics – A Quick Guide to ‘Incoterms’


Incoterms are a set of internationally agreed terms of trade which are designed to ensure both parties – you and the customer – both fully understand your obligations and responsibilities. They should be used from quotation stage through to all final paperwork in order to remove the risk of misunderstanding.

In January 2011, there was a reduction in the number Incoterms that should now be used in international trade. There are now only eleven Incoterms. They can be divided into two clear and distinct groups, namely:-

Rules for Any Mode of Transport

  • EXW Ex-works (…named place) The goods are collected at the premises specified, which may be either the factory or warehouse and the responsibility of the seller ends there.
  • FCA Free Carrier… The goods are delivered, cleared for export, to the carrier at a named place. If delivery is at your premises you are responsible for loading. If elsewhere then the…

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