Last updated on October 7, 2020
Published by the International Chamber of Commerce, Incoterms, officially known as international commercial terms, are a pre-defined global standard for allocating risk of loss, customs clearance, and transit insurance in sale of goods contracts. The ICC updates them every ten or so years. Those most recent update was published earlier this year.
“Incoterms are an amazing tool for contract drafters to succinctly manage the liabilities and responsibilities relating to transit and logistics. However, drafters must be careful not to create more problems by misuse.”
The Contract Nerds blog has a great post by Laura Frederick on 3 mistakes to avoid when using Incoterms. 1) Using the wrong format. 2) Including other contradicting concepts in the contract. 3) Not talking to your logistics and international tax team.
Go here to read the original blog post for more on these 3 mistakes.