International Logistics

Terms of Trade of Incoterms Rules Incoterms rules refer to the set trading standards' terms and conditions meant to help traders during product transit. Each rule clearly dictates each party's obligation and when risk shifts from seller to buyer. Therefore, agreeing to the terms and conditions, both the buyer and seller can enter into a mutual understanding of what is required of them and who is responsible for damaged goods or any other mishap during the process. The rules are usually designed by the internal chamber of commerce, also known as the ICC, which keeps on updating them from time to time. The recent update of the incoterms happened in 2020 and was enforced on 1 st January 2020. This essay discusses the terms of trade of Incoterms rules.