International Commercial Terms (Incoterms® rules) are a set of internationally recognised terms used in contracts to define buyers' and sellers' obligations. The first set of Incoterms® was created by the International Chamber of Commerce in 1936 and there have been seven amendments since. Definition
The shipping terms used within the set of Incoterms® rules are shown as three letters, eg FOB, CIP, DAP.
The current set of Incoterms® rules is called the Incoterms® 2020 rules, and is effective from 1 January 2020.
Old sets of Incoterms® rules do not automatically go out of date, so it is important to ensure that the date of the rules is shown in the contract, eg “Incoterms 2020 rules”.
