If you are reading this article, you are probably wondering: what are “Incoterms” and how do they affect me as a consumer? In an increasingly globalized economy, there is a strong need for transparency and clarity when dealing with international transactions. For many years, "Incoterms" have helped buyers and sellers clarify the terms of their transactions, and achieve more transparent trading partnerships.
While the bottom line appears to be the total cost, how sure can you be? Whether you’re running a business or not, you know that most industries have their hidden costs, including logistics. It’s a complicated business and you need to ask the right questions to navigate to all the right answers. Here are some of the areas that may leave you on the hook for some extra dough.
The Incoterms or International Commercial Terms, published by the International Chamber of Commerce (ICC) are a series of three-letter trade terms, commonly used in international commercial and/or procurement transactions. In some cases, misunderstanding of this lingo could cost you millions of unexpected dollars. Here is a quick guide to getting you on track with Incoterms.