Incoterms the secret weapon for businesses 

Incoterms, or International Commercial Terms, are standardised rules for trade.  It defines the responsibilities, costs, and risks for buyers and sellers in international and domestic trade transactions. The terms clarify the requirements related to the delivery of goods.  

Incoterms are crucial for facilitating global commerce by providing a common framework that reduces misunderstandings and disputes, thereby improving the efficiency of trade agreements and negotiations.  

Key values of Incoterms: 

• Clarify Responsibilities: 

Incoterms spell out who does what in shipping: transport, risk, customs, insurance, and costs.  

• Reduce Misunderstandings and Disputes: 

Using Incoterms prevents expensive legal problems and makes international business easier.  

• Facilitate Trade Efficiency: 

Incoterms make international trade easier, faster, and more reliable by improving teamwork, delivery, and payments.  

• Provide a Legal Framework: 

Incoterms set the rules for who’s responsible for what in a sale.  

• Global Standard: 

Everyone in international trade uses Incoterms—they are the standard for clear, consistent terms, set up by the International Chamber of Commerce.  

Another code to use is HS code, or Harmonized System code. It is a standardised numerical method used to classify traded products for customs and trade purposes. 

Access to HS codes Incoterms information you can clarify the information and the various tariffs that applies to your exports.  Members interested in a copy of an Incoterms book, please contact Janie at secretary@middelburgchamber.com