Publication

The Incoterms rules have become an essential part of the daily language of trade. The objective of this guide on Incoterms and Insurance is to support Bank staff, country counterparts, procurement teams, and evaluation committees in the choice of the Incoterm for procurement and their evaluation of bidders' compliance, when procuring textbooks, teacher's guides, reading books, and other types of educational materials. Incoterms is an abbreviation of International Commercial Terms, a trademark of the International Chamber of Commerce. Unlike national trade policies, Incoterms rules are global, providing clarity and predictability to businesses around the world. The Incoterms rules are incorporated in contracts for the delivery of goods worldwide and provide guidance to importers, exporters, attorneys, transporters, and insurers of international trade. When choosing the Incoterm for a contract, the Buyer needs to understand what insurance coverage is needed during shipment and throughout the entire process of contract execution. This guide will explain how to select Incoterms that appropriately assign responsibilities for Sellers and Buyers throughout the delivery process, and also look at how insurance coverage is affected by each of these Incoterms.