What are Incoterms?

Incoterms (International Commercial Terms) are a series of three-letter combinations that define the trade terms of buyers and sellers in international deliveries. They communicate clearly where the responsibility lies at each stage of the delivery process.

Their rules are accepted by almost all governments, legal authorities, and practitioners worldwide for the interpretation of most commonly used terms in international trade. This reduces any differing interpretations of the rules in different countries.



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Setting Incoterms in Delivery Manager

You can choose the default Incoterms for a warehouse in Setup, by selecting the required Terms of Trade in the bottom right of the warehouse screen, and then clicking Save:


You can override the Incoterms for individual consignments using the termsOfTradeCode field (refer to Properties needed to Call or Create a Consignment), in any of the following API calls:

Prior to Brexit, our set of valid Incoterms were: EXW (Ex. Works), CPT (Carriage Paid To), CIP (Carriage and Insurance Paid To), DAT (Delivered at Terminal), DAP (Delivered at Place), DDP (Delivered Duty Paid) and DDU (Delivered Duty Unpaid).

The most common terms used with the Delivery Manager API were:

  • DAP (Delivered At Place), which assumes that no duty has been paid in advance.

  • DDP (Delivered Duty Paid), which requires that the seller accepts all responsibility and costs for delivering the goods to the named place of destination - i.e. the seller must pay for both the export and import declarations along with taxes, duties, insurance and freight costs.

We have now added the following terms to help with the post-Brexit world: FCA (Free Carrier), FAS (Free Alongside Ship), FOB (Free On Board), CFR (Cost and Freight), CIF (Cost Insurance & Freight), DAF (Delivered At Frontier), DEQ (Delivered Ex-Quay), and DES (Delivered Ex-Ship).

This means that you can now use the Delivery Manager API to pass any of the most common terms with a consignment, provided that the carrier to which a consignment is allocated supports the terms used:



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