IID, Integrated Import Declaration

Quick Tip #32
Understanding Incoterms 2010

Whether you are buying or selling, negotiating favourable commercial terms of sale is the most effective way to cut costs and optimize transit times.

The word “Incoterms” is an abbreviation of International Commercial Terms. Incoterms are the key element of international contracts of sale as they indicate whether the seller or buyer is responsible for:

The wrong term is used almost 30% of the time, resulting in misunderstandings that almost inevitably lead to additional costs, most often for unwanted services.

For more information on Incoterms visit the International Chamber of Commerce’s (ICC) website at www.iccwbo.org, and for a complete list of Incoterm definitions including a chart of buyer and seller responsibilities, see Universal’s Incoterms 2010.