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What are INCOTERMS 2020 and why are they key in international trade?

02/10/2024

INCOTERMS (International Commercial Terms) are essential terms in international contracts that define the obligations of sellers and buyers in the delivery of goods. Established by the International Chamber of Commerce, these terms specify the distribution of expenses, the transfer of risks and the place of delivery of the goods, ensuring clarity and efficiency in operations.

🔍 Main aspects covered by INCOTERMS:

- Distribution of expenses: To what extent the seller assumes the costs.

- Transfer of risk: When the risk is transferred to the buyer.

- Place of delivery: Exact point of delivery and receipt of the goods.

INCOTERMS Classification:

- Group E: Direct delivery at departure (EXW)

- Group F: Without payment of main transport (FCA, FAS, FOB)

- Group C: With payment of main transport (CFR, CIF, CPT, CIP)

- Group D: Delivery at point of arrival (DAT, DAP, DDP)

With INCOTERMS 2020, commercial contracts are more transparent and secure. At Clever Logistics, we work with these terms to optimize each land transport operation between Spain, the United Kingdom and Ireland.