Incoterms
Pronunciation: IN-koh-termz
A set of internationally recognised trade terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers in the delivery of goods.
Full Definition
Incoterms (International Commercial Terms) are standardised three-letter codes—such as FOB, CIF, and DDP—that specify which party bears costs, risks, and responsibilities at each stage of a shipment. They are updated periodically; the current version is Incoterms 2020. Editors must render 'Incoterms' with an initial capital and no space or hyphen; it is a proper noun and registered trademark of the ICC. The specific term codes (e.g., FOB, EXW) should always appear in full capitals. Incoterms do not address payment conditions or transfer of ownership.
Usage
Usage note: Capitalise the 'I' but do not write in all caps. Always include the edition year (e.g., Incoterms 2020) when precision is required. Not to be used as a generic noun.
In Context
- "The contract specified Incoterms 2020 DDP, placing full delivery responsibility on the seller." — International trade contract
- "Editors should verify that Incoterms codes appear in capitals and the edition year is cited." — Export documentation review