Understanding Incoterms

What you should watch for when buying equipment

Question: I’m buying some equipment, and the shipping terms in the purchase agreement refer to “EXW Incoterms 2020.” I’m generally familiar with “Incoterms,” but I don’t really have a lot of time to study what each one means. Can you give me a summary of what I’m dealing with when a contract I sign references “Incoterms” and what I should be looking out for?Answer: Referencing Incoterms in a contract that requires shipping generally is a good idea, whether the shipment is coming from overseas or from within the United States. That said, you’re in the majority; most people, including lawyers, don’t have time to study them every time they ship a piece of equipment or a container of parts. Generally, Incoterms — short for “International Commercial Terms” — consist of 11 “shorthand” descriptions provided by the International Chamber of Commerce of the shipping terms that can be applied to a given contract. Using Incoterms effectively eliminates the need to go into minute detail regarding every element of the shipping process every time a contract for the purchase, sale, lease, transportation, etc. of goods is entered into. READ FULL ARTICLE>>