About Incoterms

Incoterms are standardized terms widely employed in international commercial transactions, delineating the roles and responsibilities of both buyer and seller. They encompass aspects such as goods transfer and payment, facilitating mutual understanding of obligations and entitlements. Issued by the International Chamber of Commerce (ICC), Incoterms undergo periodic updates to mirror evolving global trade practices.

The “named place” denotes the specific location mutually agreed upon by the buyer and seller, marking the point where Incoterm obligations and rights are fulfilled. For instance, in the Incoterm FOB (Free on Board), the named place corresponds to the port of shipment, where the seller’s obligations conclude upon goods placement aboard the vessel. Conversely, under CIF (Cost, Insurance, and Freight), the named place signifies the port of destination, with the seller’s duties concluding upon goods delivery to this designated location. The named place assumes significance within Incoterms, dictating each party’s responsibilities and associated costs throughout the transaction.

By adhering to Incoterms, parties can mitigate misunderstandings and ensure seamless and efficient completion of transactions.

How Incoterms are used in BizCentric

In BizCentric transactions, there are two fields that pertain to Incoterms: the “Incoterm” field and the “Named Place” field. These fields are used to ensure that the Incoterm and named place are accurately recorded in the transaction.

• The “Incoterm” field is a linked field enabling selection of the appropriate Incoterm from a predefined list of standardized trade terms.
• Once an Incoterm is chosen, the “Named Place” field becomes visible. This text field permits entry of the mutually agreed-upon location where the obligations and entitlements of both parties under the selected Incoterm are satisfied.