02/08/2026
Understanding Incoterms in International Trade
Incoterms help buyers and sellers clarify:
• Who arranges transportation
• Who pays specific logistics costs
• Who handles export and import procedures
• Where delivery takes place
• When the risk of loss or damage transfers
Selecting the wrong Incoterm can create unexpected freight charges, customs complications, insurance gaps, and disputes between the parties.
It is also important to understand that Incoterms do not determine ownership, payment terms, product specifications, or remedies for breach of contract. These matters must be addressed separately in the commercial agreement.
The chosen rule should always include the exact named port or place, for example:
FCA Istanbul, Türkiye, Incoterms 2020
CIF Port of Destination, Incoterms 2020
Clear delivery terms support better planning, stronger documentation, and more reliable transaction ex*****on.
Golden Falcon International
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