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Inco Terms I Overview

Inco Terms – This guide is designed to give you a quick reference in terms of critical points during international transport, document requirements, risk possibility and cost responsibility.

How do you use this guide? Read both the Legend and the Incoterm sections. Then refer to the chart on the lines which apply to your cargo.

The diagram attempts to illustrate Critical Point in international transport in relation to the application of Incoterms to sales and purchase contracts. Interpretation of the chief terms used in foreign trade contracts, the rules having been compiled by the International Chamber of commerce to define sellers’ and buyers’ responsibilities as clearly and precisely as possible.

It is not possible for Incoterms to be fully comprehensive due to variations decided by the custom of particular trades and/or ports. Care should be taken when applying the rules to account for these eventualities.

The basic rules can also be varied by contracting parties, by agreement, to suit any particular contract or circumstance. Merchants wishing to use these rules should specify that their contracts will be governed by the provisions of Incoterms clearly indicating any agreed variations thereto.

While every effort has been made to ensure the accuracy of information contained in this diagram, no responsibility for errors or omissions can be accepted by WCS. Abbreviations in three letters give for each Incoterm are a standard reference agreed upon by the International Chamber of Commerce.

To view a larger PDF version of the Terms of Sale chart, click on the 2 images below. The chart is divided into two halves — the buyer side and the seller side. (Note: In order to view the larger PDF files, you will need Adobe® Reader®. If you do not have Adobe® Reader® and would like to download it for free, click here.)

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