What is Incoterms?

• When global companies enter contracts to buy and sell goods, they are free to negotiate (förhandla) specific terms: – These terms include the price, quantity, and characteristics of the goods. – Every international contract also contains what is referred to as an Incoterm, or international commercial term. • A set of international rules for the interpretation of the most used trade terms. • Applying Incoterms to sale and purchase contracts makes global trade easier and helps partners in different countries understand one another. • Lack of knowledge can lead to misunderstandings and disputes between customer and supplier.