Incoterms
Business & Finance abbreviation · Logistics, Supply Chain & Trade
| Stands for | International Commercial Terms |
|---|---|
| Categories | Business & Finance |
Incoterms stands for International Commercial Terms, a logistics, supply chain & trade abbreviation.
Set of eleven standard trade rules published by the International Chamber of Commerce that define where a seller delivers goods, when risk passes to the buyer, and who pays for transport, insurance, export and import clearance. Contracts name a rule and a place, such as "FCA Shanghai Incoterms 2020."
Example: Specify the version in the contract: "CIP Chicago Incoterms 2020."
Usage notes
First published in 1936 and revised regularly, most recently in Incoterms 2020; Incoterms is an ICC trademark. Seven rules apply to any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and four only to sea and inland waterway transport (FAS, FOB, CFR, CIF). They do not govern transfer of ownership, payment or breach, which the sale contract must cover.
Related abbreviations
More logistics, supply chain & trade abbreviations
- HAWB – House air waybill
- HAZMAT – Hazardous materials
- HBL – House bill of lading
- HC – High cube container
- HS – Harmonized System
- HTS – Harmonized Tariff Schedule of the United States
- ISF – Importer Security Filing
- JIT – Just-in-time
- L/C – Letter of credit
- LCL – Less than container load
- LPN – License plate number
- LTL – Less than truckload