Incoterms

Incoterms (International Commercial Terms) are a set of international rules that define the responsibilities and obligations of buyers and sellers in an international commercial transaction, specifically in relation to goods transportation. These terms establish who is responsible for costs and risks associated with goods transportation, from the point of origin to the final destination. Incoterms determine key logistics aspects, such as: Transportation responsibility: Defines who must assume costs and responsibility for transportation at each stage of the process. Associated risks: Specifies at what point in the journey risk transfers from seller to buyer. Customs procedures management: Establishes who handles customs formalities and procedures, both export and import. Goods delivery and reception: Defines the exact place where goods delivery occurs, and at what moment responsibility for goods changes from one party to another. Incoterms are established by the International Chamber of Commerce (ICC) and are updated periodically. The most used in logistics are the following: EXW (Ex Works): The seller makes goods available to the buyer at their own facilities. FOB (Free On Board): The seller assumes costs and risks until goods pass over the ship's rail at the port of shipment. CIF (Cost, Insurance, and Freight): The seller covers cost, insurance, and freight until goods arrive at the destination port. DAP (Delivered At Place): The seller assumes all costs until goods are delivered at an agreed place in the buyer's country. The use of Incoterms helps clarify expectations and avoid disputes, improving logistics chain efficiency in international trade.