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How To Choose Suitable Shipping Incoterms^® For Our Business?

Shipping Incoterms is one of the universal guidelines for international importing and exporting. Compared to Incoterms 2010, the newest version Intercoms 2020 added important interpretation to keeping up with the rapidly developing modern logistics from the rising e-commerce mainly. In this page, we will explain and illustrate the glossary of these 11 shipping terms we may have used one or two terms before. The most important thing is that we are providing much clearer guidance to quickly fix a suitable shipping incoterms for clients’ business and shipping.

The full name of Incoterms is International Commercial Terms. The 11 terms in it are globally recognized trade rules. They are first published in Paris in 1936 by the International Chamber of Commerce (ICC). In these shipping intercoms, we can see:

However, the above 11 Incoterms rules are not mandatory but guidelines agreed upon by both parties to a contract. They are trading terms but law terms. Before the shipment process starts, the sellers and buyers need to agree on dividing obligations, costs and risks.