The International Chamber of Commerce (ICC) continues to facilitate seamless global trade through Incoterms, a standardized set of rules established in 1936.

These terms define the precise transfer of risk, logistics costs, and legal obligations between sellers and buyers, ensuring clarity in customs clearance and international transport. These regulations remain vital for mitigating cross-border disputes and optimizing global supply chain efficiency.

Two Primary Structures

1. Multimodal Terms (All Transport Modes)

• • EXW (Ex Works)
    Maximum responsibility rests with the buyer, who assumes all costs and risks once goods are made available at the seller’s premises.
  • DDP (Delivered Duty Paid)
    The seller bears exhaustive responsibility, including transport, duties, and delivery to the buyer’s specified location.

2. Maritime-Only Terms (Waterway Transport)

• • FOB (Free on Board)
    Risk transfers to the buyer the moment goods are safely loaded onto the vessel.
  • CIF (Cost, Insurance, and Freight)
    While the seller pays for transport and insurance to the destination port, the buyer assumes risk once the cargo is onboard.