Incoterms in air freight

Definition

The International Chamber of Commerce’s Incoterms rules provide standard delivery terms. They define the delivery point, allocation of costs and transfer of risk, among other matters. They do not automatically determine title, payment terms or every customs responsibility.

Why does it matter?

The selected rule affects quotation scope, pickup, insurance and import handling. The rule and named place should be stated clearly in contracts and shipping documents.

Key points

• State the exact rule, named place and applicable edition.
• Not every rule is equally suitable for every mode of transport.
• Agree responsibilities for export, import and duties explicitly.

Practical example

CPT Frankfurt Airport and DAP consignee address create very different scopes, delivery points and cost allocations.

Common mistakes

• Using a vague phrase such as “free delivered”
• Omitting the named place or Incoterms edition
• Treating Incoterms as title or payment provisions