Updated Incoterms 2023: terms for importing and exporting
Incoterms, short for International Commerce Terms, are a set of terms created by the International Chamber of Commerce (the ICC) to ease and unify international trade contracts. The export and import Incoterms are used to determine and establish responsibilities in an international trade agreement. The latest edition, released in 2020, continues to be effective in 2023.
Discover why Incoterms are important and their uses in international trade. Find the best solution for your cargo shipping needs with a reliable forwarder.
What are Incoterms?
The Incoterms are shipping terms That can be included in trade contracts to help regulate the procedures of shipping, importing and exporting cargo internationally. All Incoterms are referred to by three-letter acronyms, and each of them has its own set of rules and applications.
What is the purpose of incoterms?
Incoterms were first created in 1923 to create an international standard for commercial agreements. The first edition of Incoterms was published in 1936 and has been updated roughly every 10 years to keep up with the updates in the international commerce and logistics world.
The purpose of Incoterms is to define the tasks, costs, risks and responsibilities of each party when drafting an international sales contract. Although they are not laws, export and import Incoterms are recognised by governments and legal authorities.
What is determined by the latest and updated Incoterms?
- Which party clears the goods for export and import
- Which party covers freight, loading and terminal handling costs
- Which party is responsible for purchasing insurance
- Collection, delivery and destination locations
- Clear definition of the point in which the risk transfers from one party to the other
Updated incoterms 2023
Find out more:
What are the different types of Incoterms?
There are several ways of dividing the different types of Incoterms. The main separation is done for the specific use case of each Incoterm – whether it is specific for one mode of transport or if it can be used for multimodal shipping.
Multimodal Incoterms 2023
The following Incoterms can be used for freight shipping using any transport mode, including multimodal deliveries:
Incoterms 2023 used for sea freight
The following Incoterms can only be used for sea, ocean or inland waterway freight shipping:
You can read more about the different types of Incoterms on our dedicated pages:
Why are Incoterms important?
Although they are not mandatory, using Incoterms for importing and exporting can significantly ease the trade process, and that is why traders are strongly advised to get familiar with their meanings and rules. It is important to be on top of changes and understand the latest version of the Incoterms, as there are always nuances compared to the previous versions used.
Using Incoterms for international freight shipping is meant to make the process smoother for all parties involved since they were created to establish an international set of rules and regulations that would have the same purpose and meaning in every country. Since Incoterms are not translated or localised, the risks of misunderstanding and translation errors are minimised.
For all of these reasons, the use of Incoterms is widely encouraged and accepted in the international trade and transport industry.
Comparing the different Incoterms
Ship your cargo with a reliable freight forwarder
Join the digital logistics world and access a vast network of vetted freight forwarders from one single place. At Eurosender, we collaborate with reliable cargo transport companies and international carriers and will connect you to the best provider for you. Our team of experts will act as an intermediary on your behalf to organise every detail of the shipping service.
NEED MORE INFORMATION?