Who decides on what Incoterm to use?

The Incoterm should be agreed upon between the buyer and seller as an initial first step when negotiating the sales contract. The most appropriate term will depend on the size of the firms involved and their experience handling freight movements. Businesses may take advice from third parties such as shipping agents, insurance brokers, banks, and customs agents but ultimately the responsibility lies with the seller and buyer.

Read our comprehensive guide to Incoterms article with lots more information about the 11 different Incoterms, important actions businesses need to take and links to further support.