INCOTERMS® is a standardized set of rules from the ICC - International Chamber of Commerce. INCOTERMS® defines risks, obligations and responsabilities for customers and suppliers in connection to a trade.
When customer and supplier make a trade, they also enter an agreement as to how the goods are to be delivered. By using INCOTERMS® it is clearly defined, who is to pay delivery costs, when in the process the order is considered delivered, and when risks and responsabilities transfers from supplier to customer.
INCOTERMS® rules are not set by law, but are legally binding.
The latest edition of the INCOTERMS® are dated January 1st 2020
The following rules concerns all forms of transportation:
EXW (Ex Works)
FCA (Free Carrier)
CPT (Carriage Paid To)
CIP (Carriage and Insurance Paid to)
DAP (Delivered at Place)
DPU (Delivered at Place Unloaded)
DDP (Delivered Duty Paid)
Rules concerning transportation by sea:
FAS (Free alongside Ship)
FOB (Free on Board)
CFR (Cost and Freight)
CIF (Cost, Insurance and Freight)
You can read more about INCOTERMS® at the ICC
tracezilla is an ERP system supporting order and inventory management for food companies. When an order is created in tracezilla the delivery terms are defined by INCOTERMS®.