Record The Term, Version And Precise Place
The US International Trade Administration describes Incoterms® as rules allocating tasks, costs and risks between sellers and buyers. ICC recommends identifying the chosen rule, named port or place and edition in the sale contract. For a quotation request, copy the agreed wording and document reference rather than guessing from an invoice abbreviation. Ask the trading parties to resolve a missing year or unclear location before relying on it. Record the collection address and final receiving address separately: they may serve different purposes from the place named in the trade term.
US International Trade Administration · Know your Incoterms · ICC Digital Library · Incoterms and commercial contracts
Separate The Sales Agreement From The Transport Order
ICC explains that incorporating these rules in a sale contract does not make them the terms of the carrier’s contract. Our recommended scope record therefore has two layers: what buyer and seller agreed, and what the appointed service provider has confirmed. List collection, receiving, repacking, main transport, destination handling and final delivery individually. For each line, identify the ordering party, invoice recipient, quoted inclusion and unresolved condition. A forwarder’s short label should be checked against the actual service description and exclusions.
ICC Digital Library · Incoterms and commercial contracts
Review Payment, Risk And Insurance As Separate Questions
ICC Academy’s discussion of CFR and FOB warns against confusing freight arrangements with the transfer of risk or ownership. Do not treat freight paid to a destination as proof that the seller bears every transit risk until arrival. Our review file records the contract’s delivery point, any separately agreed ownership or payment provisions and the insurance evidence supplied for this shipment. If insurance is requested, ask for the insured journey, goods, coverage, exclusions, deductible and claims contact. An informal statement that shipping is insured is not a completed policy review.
ICC Academy · CFR, FOB and transfer of title
Resolve The Gaps Before Approving Dispatch
Send the seller, buyer and booking party the same dated scope summary. Ask who will provide export and import documents, who is arranging the relevant clearance service and who is invoiced for duties or other destination costs. Ask the appropriate broker or local representative to confirm what is feasible for this route; a trade abbreviation alone is not confirmation of importer eligibility. If the place, goods or service changes, obtain an updated quotation and retain the prior version. These are our preparation recommendations, not a substitute for the agreed contracts or a determination of legal liability.
Before Approving The Quote
- Keep the agreed term, edition, named place and sale-document reference together.
- Confirm collection and final delivery separately from the contractual delivery point.
- List included, excluded and unresolved services with an ordering party and invoice recipient.
- Review insurance evidence, clearance arrangements and destination payments separately.
Illustrative Mismatch
Illustrative example: a supplier document names a destination seaport, while the quotation ends at that port’s handling point and the buyer expects delivery to an inland warehouse. Our recommendation is to mark the onward leg unresolved, ask who arranges it and obtain its scope and price before approval. This is an invented scenario, not a ruling about a particular trade term or customer contract.
Download the responsibility review (CSV, English)
Reference Reading
Related Guidance
