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TERM OF THE DAY

Incoterms Incoterms are trade terms published by the International Chamber of Commerce (ICC) that are commonly used in both international and domestic trade contracts. Incoterms, which is short for "international commercial terms," are used to make international trade easier by helping traders who are in different countries to understand one another.

Breaking it Down: Incoterms were first developed in 1936 and are updated from time to time to conform to current trade practices. Because of these updates, contracts should specify... Read More

Related to "Incoterms"

Ex Works (EXW) Ex Works, or EXW, is an international legal trade term specifying that the seller is responsible to make his goods ready for pick-up at his place of business.Read More Cost and Freight (CFR) Cost and freight, called CFR, is a trade term between a buyer and seller. CFR requires the seller to arrange for the transport of goods by sea to the required port. It also requires the seller to give the buyer the documents required to pick up the goods from the carrier. Read More Delivery Duty Paid (DDP) Delivery duty paid (DDP) is a shipping term specifying that the seller is responsible for all costs associated with delivery of the goods to the buyer. It is usually used when goods are exported to another country. Read More

Related Definitions

Free Alongside - FAS A trade term requiring the seller to deliver goods to a named port alongside a vessel designated by the buyer. Read More Delivered Duty Unpaid - DDU A transaction in international trade where the seller is responsible for making a safe delivery of goods to a named destination, paying all transportation expenses but not the duty. Read More Delivered Duty Paid - DDP A transaction in which the seller must pay for all of the costs related to transporting the goods and is responsible in full for the goods until they have been received and transfered to the buyer. Read More Delivered At Place (DAP) The term delivered at place (DAP) is one used in international trade used to describe a deal in which the seller agrees to pay all costs of moving goods sold, and to suffer any potential losses, up to a specific location. Read More