What are Incoterms? If you are an importer or exporter then it is necessary to understand incoterms properly. Otherwise you wont be able to understand the extent of your responsibility, and the responsibility of the shipper. The INCO terms outline the obligations of the buyer and seller in relation to international transportation.
These responsibilities are related to:
1) point of delivery, clearly defining the change of the hands of the goods from seller to buyer
2) Clearly defining who will pay for the freight of these goods
3) Defines who is responsible for import and export formalities
There are 12 commonly used inco-terms that will be discussed later