Incoterms, short for International Commercial Terms, are a standardized set of rules established by the International Chamber of Commerce (ICC).
At their core, Incoterms define the mutual selling terms agreed upon by buyers and sellers in international transactions, establishing responsibilities for costs, risks, and tasks.
Out of the 11 incoterms, two of the most commonly used incoterms are EXW and FOB:
EXW (Ex Works) is the most basic Incoterm, where the seller is only responsible for making the goods available at their premises. The buyer is responsible for all costs and risks associated with the transportation of goods from the seller's premises to the final destination. This means the seller has no obligation to load the goods onto a delivery vehicle, arrange for transportation, or pay for insurance.
FOB (Free on Board) means that the seller is responsible for delivering the goods to the port of shipment, and the buyer is responsible for all costs and risks associated with transporting the goods from the port of shipment to the final destination. In other words, the seller is responsible for getting the goods to the port and the buyer is responsible for getting the goods from the port to their destination.
To read further about incoterms, and to elaborate about the rest of the terms, check out our in depth article: https://help.gocubic.io/en/articles/8625148-incoterms-in-depth
Default Export Incoterms
On most cases, the incoterms you have set up with your supplier will remain the same.
Cubic lets you define the default incoterms, to save you time when requesting new quotes.
Try our free Incoterms Calculator!