International Commercial Terms

Definition

A set of 11 internationally recognized trade terms published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers for the delivery of goods. Incoterms specify who is responsible for paying for and managing shipment, insurance, documentation, and customs clearance. The current version is Incoterms 2020. In time-critical logistics, the most commonly used terms are DAP (Delivered at Place) and DDP (Delivered Duty Paid), where the seller/logistics provider manages the entire door-to-door process.