Incoterms were first introduced in 1936, and are provided by the International Chamber of Commerce as a way of having common agreed terms and responsibilities around things such as delivery point, passing of risk, responsibility for transport and insurance, as well as customs duties. They are designed for businesses that are involved in the trade of goods cross border. They are used by all sizes of business from large multinationals through to micro-sized enterprises.
The latest version is being hailed as clearly and accurately reflecting present-day trade practices.
We now await to see what changes there will be and look forward to the introduction of the new version.
Whilst Incoterms cover some of the essentials, there are other terms that need to be agreed in parties' written agreements - such as liability, warranties, price and payment terms, confidentiality and which laws govern the contract.