Were created by the International Chamber of Commerce (ICC).
All International purchases that are negotiated through a sales contract (Terms of Sale) by the buyer and seller will be processed on an agreed Incoterm to define and state which party legally incurs the cost and risk that are associated with each party.
These rules are accepted by governments and legal authorities around the world.
The Incoterm states when the seller’s costs and risks are transferred onto the buyer. It’s also important to understand that not all rules apply in all cases. Some encompass any mode or modes of transport. Transport by all modes of transport (road, rail, air and sea) covers FCA, CPT, CIP, DAP, DPU (replaces DAT) and DDP. Sea/Inland waterway transport (Sea) covers FAS, FOB, CFR and CIF
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