Incoterm Definition
International Commerce Terms, also known as Incoterms, are a set of guidelines established by the International Chamber of Commerce that outline the responsibilities and obligations of buyers and sellers in international trade transactions. In the coffee industry, these terms are commonly used to define who is responsible for the transportation, ownership, and risk associated with getting coffee from the point of origin to the final destination. They are widely used in commodity trading markets.
Incoterm definition explained in simple terms so everyone can understand
International Commerce Terms are like a set of rules that tell buyers and sellers what they need to do when they trade goods with people from other countries. These rules are used a lot in the coffee business, to make sure that the coffee gets to where it needs to go, and to make sure that the right person is in charge of the coffee and takes care of any problems that might happen while it's being shipped. Think of it like a game with specific instructions, so everyone knows what to do.