INCOTERMS are important because they provide a standardized set of rules for buyers and sellers to follow in international trade. They define the responsibilities, risks, and costs associated with the transportation and delivery of goods, as well as insurance, customs clearance, and other similar activities.


By using INCOTERMS, businesses can avoid misunderstandings, disputes, and additional costs by clearly defining the obligations and responsibilities of each party in a sales transaction.


Additionally, they can help businesses maintain a competitive advantage in the global supply chain as all parties will be aware of their responsibilities and the terms of the transaction.

Reference:Incodocs