INCO terms

You learnt that specifications, delivery period and destination are all dependent  factors   on  a   particular   project.  Let   us  know  about   the international standards set for any project.

The INCO terms (International Commercial Terms) is a universally recognised set of definitions of international trade terms such as EXW (Ex Works....named place), FOB (Free on Board... named port of shipment), CFR (Cost and Freight.... named port of destination), and CIF (Cost, Insurance and Freight.... named port of destination). The INCO terms are developed  by  the  International  Chamber  of Commerce  (ICC)  in  Paris, France.

For example, for national procurement the trade term often used is FOR (Free on Rail), it defines the trade contract responsibilities and liabilities between the buyer and seller. It is a cost saving tool. The exporter and the importer need not undergo a lengthy negotiation about the conditions of each transaction. Specifying the appropriate INCO TERM in the bid document helps to arrange the responsibility of the seller, which enables him to submit the bid accordingly.