What do Incoterms cover?

Boxes on trolley in warehouse against forklift machine in warehouse

Incoterms describe the practical arrangements for the sale and movement of goods between a seller and a buyer. The correct Incoterm agreed upon between the two parties will determine:

  • Where the goods will be delivered
  • Who is responsible for arranging the transportation
  • Which party is responsible for insuring the goods
  • Who handles any customs procedures and pays any related duties and taxes.

What do Incoterms not cover?

Whilst Incoterms cover a range of areas around the arrangements between a buyer and seller, they do not cover:

  • Price of the goods
  • Specify the type of goods
  • The time, place, method, or currency of payment
  • Provide remedies in event of a contract breach
  • Provide guidance regarding force majeure
  • Transfer of ownership of goods.

Read our comprehensive guide to Incoterms article with lots more information, important actions businesses need to take and links to further support.