The International Chamber of Commerce have published Incoterm® rule that is effective from 01.01.2020 The Incoterm® are the selling terms that buyer & seller of goods both agree to during international transactions. This term is not for one country but for all. It is very important to understand the Incoterm® because it state which task, cost & risk are associated with the buyer and the seller. Incoterm® is an acronym standing for International Commercial Terms. ➤Helps In 1. Filing a purchase order/ sales contract/ purchase contract 2. Deciding obligation- who does what as a buyer & seller 3. Identifying the party responsible for cost towards Carriage, Transportation, Insurance, Packing & Labelling. 4. How/When does the risk transfer from the seller to the buyer. Incoterms rules traditionally grouped into 4 terms. 1. EXW - Ex Works 👉 The seller delivers when it places the goods at the di...
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