An overview
International Commercial Terms (‘Incoterms’) are internationally recognized standard trade terms used in sales
contracts. They’re used to make sure buyer and seller know:
Who is responsible for the cost of transporting the goods, including insurance, taxes and duties
Where the goods should be picked up from and transported to
Who is responsible for the goods at each step during transportation
The current set of Incoterms is Incoterms 2010. A copy of the full terms is available from the International
Chamber of Commerce.
Help and advice
Contact the UK Trade & Investment enquiry line for help and advice on Incoterms.
UK Trade & Investment enquiry line
020 7215 5000
Incoterms apply to both national and international sales.
What the terms mean
Incoterms are used in contracts in a 3-letter format followed by the place specified in the contract (e.g. the port
or where the goods are to be picked up).
There are different terms for sea and inland waterways (e.g. rivers and canals) compared to all other modes of
transport.
For more detail, including terms that were in use before 1 January 2011, please visit the International Chamber
of Commerce (ICC) website.
There are also example contracts and clauses available from the ICC.
VAT isn’t covered by Incoterms - you need to specify who pays the VAT on both imports and exports