INTERNATIONAL SALE RESPONSIBILITIES
Incoterms
Incoterms are rules published by the International Chamber of Commerce that define selected buyer and seller responsibilities in a sale of goods, including delivery, risk and specified cost obligations. The chosen rule, named place and version identify the intended arrangement.
INCOTERMS IN PRACTICE
- Choose the ruleMatch the transport mode and intended responsibilities.
- Name the placeSpecify the relevant location and version.
- Align the documentsCheck carriage, insurance and sale terms together.
Use the agreed units, actual records and approved procedures for your operation.
A WORKED EXAMPLE
A destination and a risk-transfer point can differ.
Buyer and seller discuss a shipment to a destination port. They confirm the selected rule and version, then separately identify where delivery and risk transfer occur rather than inferring both from the destination name.
WHAT THIS MEANS FOR YOUR QUOTE
Agree the requirement before comparing quotes
Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.
A LITTLE MORE CONTEXT
Questions about Incoterms
Do Incoterms decide ownership transfer?
No. Ownership requires separate contractual treatment.
Is the destination always the risk-transfer point?
No. It depends on the chosen rule.
Is the three-letter rule alone sufficient?
Specify the relevant named place and version as well.
Source & example notes
ICC: Incoterms, delivery and title transfer.
Sources provide background on the linked topic. Product documentation describes a particular implementation; confirm the rules, contract and procedures that apply to your operation.
Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 22 October 2026.
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