INCOTERMS
Incoterms: well established terms to agree on delivery conditions.
Incoterms (International Commercial Terms) are a standardized set of international trade terms used in contracts for the sale of goods.
The main objective of Incoterms is to define the responsibilities and obligations of buyers and sellers regarding the delivery, transport, risk and cost related to the shipment of goods.
These terms are created and maintained by the International Chamber of Commerce (ICC), and regularly updated to reflect changes in global trade practices.
If during the sourcing process we receive quotations with different Incoterms, we should be aware of the additional cost associated with different Incoterms and consider this additional cost in the final TCO (Total cost of ownership) comparison, the base of sourcing decisions.
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