Understanding how to use Incoterms 2010

A surprising number of people use Incoterms without realising they are doing so. The problem, today, is that incorporating the wrong incoterm into your contract can end up invalidating any Goods in Transit insurance for your shipment, so it is now more important than ever to ensure you understand how to use Incoterms 2010.  Point to Point Export Services can help you avoid making costly mistakes in this area.

So what are Incoterms?

Incoterms (International Commercial Terms) are sales terms regulated by the International Chamber of Commerce (ICC) and they are used in sales contracts to determine:-

  • which costs, at each stage of the shipping process, are the responsibility of the seller; and which are the responsibility of the buyer
  • the physical point where the risk and responsibility for transporting goods passes from the seller to the buyer.

The current set of Incoterms is Incoterms 2010 and consists of 11 terms. Incoterms on their own have no legal status (except in the Ukraine) but once incorporated into a sales contract, their inclusion then gains legal meaning.  Due to recent changes in the way incoterms are perceived by third parties such as insurance companies and the legal profession, it has become very important to ensure that the term used in the contract is the correct one.

To assist our clients we have issued a series of blogs on Incoterms 2010 and these can be accessed through our Export blog under the International Transport section.

Do contact us for further information on how we can help you incorporate Incoterms 2010 correctly into your contracts, by either phoning us on 01189 323830 or contacting us by e-mail at info@point-point.com.