Definition · Incoterms & logistics

Incoterm

An international trade rule (ICC Incoterms) defining which of the seller or the buyer bears the costs, risks and formalities at each stage of transport. A wrong choice can wipe out the margin.

Related terms

FOBFree On Board: the incoterm where the seller delivers the goods loaded on board at the departure port (Radès or Sfax) and the buyer then bears freight, insurance and risks. The recommended standard for a first export.CIFCost, Insurance and Freight: the seller pays the freight and minimum insurance up to the arrival port, with the risk passing to the buyer at loading. It provides a port-delivered price convenient for the buyer.DDPDelivered Duty Paid: the seller delivers cleared and duty-paid at the buyer's premises, bearing all import costs and duties. The most committing incoterm, to be avoided with an unknown customer.

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