Business & Trade

Incoterms

Summary

International commercial terms standardized by ICC defining responsibilities of buyer and seller in trade.

Detailed Explanation

Incoterms (International Commercial Terms) are standardized trade terms published by the International Chamber of Commerce (ICC), most recently updated as Incoterms 2020. They define which party is responsible for transportation costs, insurance, duties, and risk transfer at each stage. Common Incoterms for solar: EXW (ex works), FOB (free on board), CIF (cost+insurance+freight), DDP (delivered duty paid), FCA, CPT, DAP. Choosing the right Incoterm is critical β€” it determines your total landed cost.

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