This document discusses Incoterms, which are internationally recognized trade terms used in contracts for international and domestic sale of goods. It provides answers to 7 common questions about Incoterms, explaining that they define responsibilities for sellers and buyers regarding transportation costs and delivery of goods. Incoterms need to be clearly stated on commercial invoices and contracts to clarify ownership and liability for goods being imported.

1. Incoterms are the internationally-accepted definitions and rules
of interpretation for most commercial terms. What do you need
to know about them before you import goods?
7 ANSWERS TO
INCOTERM QUESTIONS
Incoterms are three-letter trade terms used in
international/domestic sale of good contracts.
AFC International
Customs Brokers
A Licensed Customs Broker from AFC International can help you
navigate all the terminology and prccesses involved with importing.
Call us at 800-274-2329 today to get started.
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1.800.274.2329
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Source: U.S. Customs and Border Protection
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YOU NEED TO KNOW
1
WHAT ARE INCOTERMS?
Incoterms offer rules that outline the transfer
of goods responsibilities for sellers and buyers
and assign transportation costs and
responsibilities connected with the delivery of
goods between importers and exporters.
2
WHAT DO INCOTERMS DO?
Incoterms 2010 are three-letter standard
trade terms that are the most recent revision
of Incoterms.
3
WHAT DO INCOTERMS 2010
CATEGORIES DO?
The International Chamber of Commerce and
all contracts made under Incoterms 2000
remain applicable, even after 2011.
4
CAN YOU USE INCOTERMS 2000?
No. This should be clarified within your contract.
5
CAN INCOTERMS BE USED TO
DETERMINE THE OWNERSHIP
OF GOODS?
It is important that Incoterms are stated on
the commercial invoice, which also lists the
purchase price, country of origin and tariff
classification for your imports.
6
WHERE ARE INCOTERMS LISTED?
The Incoterms necessary for your cargo will
depend on your freight’s mode of transportation
and the charges due.
7
WHAT ARE THE INCOTERMS
DEFINITIONS YOU NEED
TO KNOW?
Do you have questions about Incoterms or other
importing matters? Contact our customs
brokerage experts at 800-274-2329.
2000