Incoterms® are identified by the use of a three-letter code, followed by a location, and
the words “Incoterms 2010” to indicate the year of revision.
Incoterms® Rules are recognized worldwide in international trade. The rules include
information on the delivery, carriage, and transfer of the risks and cost.
Below are the definitions for terminology in relation to an Incoterms®:
• Carriage: the transportation used to move the goods (vessel/truck/airplane or rail).
• Contract: to arrange and pay for a service (transportation, insurance or customs
clearance).
• Costs: the fees or charges associated with the transportation of the goods.
• Risk: the liability for damage or loss of the goods.
• Delivery: indicates where the risk transfers from the seller to the buyer.
To help you better visualize and understand each Incoterms® 2010 Rule, the
international shipment diagram displays the mode of transport applicable and a vertical
bar where the transfer of carriage, risks and costs takes place. Below each rule is a
brief explanation. Always refer to the publication “Incoterms® 2010 by the International
Chamber of Commerce (ICC) ICC rules for the use of domestic and international trade
terms” for definitive guidance.