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.
Article reviewed by the InterTradeIreland Trade Hub Team: December 2025