Difference between Basmati and Non-Basmati Rice: Everything you need to know

Rice, a globally eaten staple food, is available in a variety of varieties that are cherished and appreciated in various cultures. Basmati rice and non-basmati rice differ significantly in terms of flavors, textures, and fragrances.

Long, medium, or short grains determine whether rice is classified as long, medium, or short. In addition, rice can have a range of textures, including fluffy, buttery, and glutinous. Also variable in color, rice can be brown, white, or red.

These distinct characteristics, such as grain length, texture, and color, play a significant role in determining the use of various rice varieties in recipes, the suitability of rice for particular dishes, and the cooking methods employed. Different cuisines throughout the globe favor distinct rice varieties, which they incorporate into their traditional dishes.

Both basmati and non-basmati rice has a special place in the hearts of consumers among the vast variety of rice. Rice is most adaptable and is used for a variety of dishes and occasions. However, each type of rice possesses distinctive characteristics that distinguish them from one another.

In this blog, we will discuss types of Basmati rice and non- basmati rice, and also will share the exact differences between Basmati rice and Non-Basmati rice.

What is Basmati Rice?

Basmati rice is an aromatic, long-grain rice indigenous to the Indian subcontinentBasmati rice is known as the Queen of Scents because of its alluring aroma, which enhances the tastes and flavor of dishes. It is popular for its distinct aroma, exquisite flavor, long grains and fluffy consistency. Basmati rice is highly regarded for its superior quality and is one of the finest varieties of rice in the world.

Basmati rice is cultivated in the foothills of the Himalayas. Yamuna and Ganga, two rivers, nourish paddy produce. This long and slender rice has a flavorful, creamy texture. The aroma and fragrance are intensified through the aging process.

Basmati rice, like all other types of rice, is available in both white and brown varieties, depending on the milling process. This rice has longer grains than other varieties. It becomes longer rather than glutinous when cooked. The aroma of cooked basmati rice is readily identifiable. There is no other rice in the world that combines these characteristics.

Types of Basmati Rice

  • Traditional basmati rice
  • P3 Punjab
  • Type III Uttar Pradesh
  • Hbc-19 Safidon
  • 386 Haryana 
  • Kasturi (Baran, Rajasthan)
  • Muradabadi Basmati 6465
  • Basmati 198
  • Basmati 217
  • Basmati 370 Bihar
  • Kasturi
  • Mahi suganda
  • Pusa 1121
  • Pusa 1718
  • Pusa 1509
  • Pusa 1692
  • Pusa 1637
  • Pusa 1401.
  • Sharbati basmati rice

Roots of Basmati Rice

Basmati rice has a long history in the Indian subcontinent, where it has been grown for thousands of years. The name “Basmati” comes from the Sanskrit word “vasmati,” which meaning “fragrant.” Basmati rice was first mentioned in the sixth century AD.

Basmati rice was largely cultivated in the Himalayan foothills, in present-day India and Pakistan. Rice was traditionally farmed without the use of chemical fertilizers or pesticides using sustainable farming practices. To harvest rice, the farmers relied on natural resources such as river water and monsoon rainfall.

Basmati rice cultivation was not restricted to the Indian subcontinent; it was also farmed in neighboring nations such as Iran, Iraq, and Afghanistan. In reality, Basmati rice was originally called “Iranian rice” since it was exported from India to Persia.

What is Non-Basmati Rice?

Non Basmati rice is any rice variety that is not basmati rice. Rice variants include short-grain, medium-grain, and long-grain rice. 

Non-basmati rice is grown in the Indian subcontinent’s southern areas. These rice varieties are grown in the states of Maharashtra, Andhra Pradesh, and Kolkata. The surface of this rice is sticky. However, after cooking, it can be soft and fragrant depending on the type. 

It is known as a complete food that can be used in a variety of ways to add flavor to any recipe. This rice contains amylopectin, a starchy protein that induces stickiness. The individual grains stay together after cooking, which is why it is utilized in a variety of cuisines.

China, Thailand, Japan, and the United States are among the countries that grow and eat non-Basmati rice. It is a versatile rice that may be found in many different cuisines, including Chinese, Thai, and Japanese.

Types of Non-Basmati Rice

  • Sona Masoori
  • Jeera Samba
  • 100 Broken Rice
  • Ponni Rice
  • IR 64 Rice
  • IR 8 Rice
  • Matta Rice
  • Idly / Kranti Rice
  • PR11 non-basmati rice
  • PR14 non-basmati rice
  • Parmal non-basmati rice
  • Round non-basmati rice

Difference between Basmati and Non-Basmati Rice

There are several differences between basmati and non-basmati rice based on different aspects.

Aspect Basmati Rice Non Basmati Rice
Grain Length Long grains with an average length of 6-7mm. Varied grain lengths including short, medium, and long grains ranging from 2-7mm.
Aroma Unique and pleasant aroma Less or neutral aroma compared to Basmati rice. The aroma varies based on the specific variety.
Texture Delicate and fluffy texture with separate grains when cooked properly. Varies based on the variety. Some are slightly sticky when cooked while others have a firmer texture.
Flavor Mild flavor that enhances the overall dish without overpowering other flavors. Neutral flavor that absorbs the flavors of accompanying ingredients.
Culinary Uses Commonly used in biryani, pulao, and fried rice. Complements Indian, Middle Eastern, and Persian cuisines. Used in various cuisines and dishes. Jasmine rice in Thai and Southeast Asian cuisines, Arborio rice in Italian cuisine (risotto), brown rice as a healthier alternative.
Origin Primarily cultivated in the Indian subcontinent, particularly in India and Pakistan. Basmati rice is mainly produced in J&K, Himachal Pradesh, Punjab, Haryana, Uttarakhand, and western Uttar Pradesh. Cultivated in various countries worldwide, including China, Thailand, Japan, the United States, and others. In India, Non-basmati rice is mainly produced in Tamil Nadu, Andhra Pradesh, Bihar, Chhattisgarh, Odisha, Assam.
Popularity Globally recognized for its quality. Preferred by rice connoisseurs. Popularity varies depending on the region and variety. Some Non Basmati rice varieties like Jasmine rice or Arborio rice have gained significant popularity.
Price Generally higher price due to demand and premium quality. Price varies depending on the variety, with some Non-Basmati rice varieties being more expensive than other Basmati rice types.

Rice Exports from India

India plays a significant role in rice trade, exporting a wide variety of rice to many other nations. India’s rice is one of the most valuable commodities in international trade. The country’s rich farmland, mild climate, and cutting-edge farming methods all combine to produce rice of exceptional quality, which is in high demand around the world.

India is now one of the world’s leading rice exporters, thanks to years of consistent growth in that sector. Both Basmati and non-Basmati rice varieties are available in the country to meet the needs of a wide range of foreign customers. 

India now sends millions of tonnes of rice to countries on every continent every year, and this number is only expected to grow. In 2021–22, India shipped out an all-time-high 21.21 million tonnes (mt) of rice valued at $9.66 billion. That included 17.26 mt of non-basmati (worth $6.12 billion) and 3.95 mt ($3.54 billion) of basmati rice.

It is essential for buyers of Indian rice to work with exporters who have a proven track record and solid footing in the industry. 

EXPORA is an end-to-end solution provider for your rice export and import needs. With our presence across geographies, you get the benefits of demand generation, seamless compliance management, integrated logistics, timely delivery, assured quality and transparent payments. Whether you are an existing rice Exporter, a Manufacturer, or a Brand aspiring to expand globally, we are here to fuel your growth.


Today, Basmati rice is known as one of the finest rice kinds in the world, and its cultivation is governed by stringent quality requirements. It is frequently used in many different cuisines, and its popularity shows no signs of waning.

When it comes to aroma, texture, and flavor, Basmati rice and Non Basmati rice are two distinct varieties of rice. Basmati rice is a type of aromatic long-grain rice that is highly regarded for its subtle taste, light texture, and alluring fragrance. 

However, non-basmati rice encompasses several different types of rice that are not basmati and that have different grain lengths. Basmati and non-basmati rice are both adaptable ingredients that can be used in a wide range of recipes.


Is basmati rice healthy?

If you think rice is just rice, Well it’s not. Basmati rice is superior to regular rice. Basmati is both gluten-free and low in fat. It has no cholesterol and is very low in sodium. It also contains all eight essential amino acids.

Which rice is healthier: Basmati or Jasmine?

There are three main reasons why basmati rice is a better option for your health than jasmine rice: it has more nutrients, it contains less arsenic, and it has a lower glycemic index.

What is so special about basmati rice?

Basmati rice is low in salt and includes all eight necessary amino acids. It’s cholesterol-free and has a moderate glycemic index, both of which contribute to a more even flow of energy throughout the day.

Why is basmati rice more expensive than normal rice?

Basmati is still one of the most expensive types of rice grown worldwide. This is because of the crop’s relative fragility and the necessity of preserving heirloom grain varieties. The high demand all around the world attests to the quality of our long-grain, thin, and soft grains.

Who is the largest exporter of rice?

As of 2021-22, India exported the most rice in the world, at 21.21 million metric tonnes. 

EXPORA exports a wide range of rice to UAE, GCC, Africa, UK, USA. Be assured of quality, competitive prices and timely delivery. Reach out to us to place orders at contact@expora.in

What is LCL Shipping: Everything You Need to Know

For smaller companies and individuals shipping items in lesser quantities, international shipping can be a daunting undertaking. Where LCL shipping comes in is at this point. Less than Container Load (LCL) shipping is a common option since it allows individuals and companies to send less than a full container’s worth of products at a more affordable rate.

However, for those unfamiliar with the process, LCL shipping can be overwhelming and perplexing

Everything from what LCL shipping is and why it’s useful, to how it works, and what you can do to ensure a smooth shipment, will be discussed in this blog. If you’re a retailer with a small inventory or just an individual who needs to ship some goods, read on to find out everything you need to know about LCL shipping.

What is LCL Shipping?

Full Container Load means that your shipment will take up the entire space allotted for it in a shipping container. If your shipment does not fill an entire container, it will be marked as LCL. To make better use of the container’s storage space, you can combine your consignment with others if that option is available. 

For companies who don’t need to send an entire container’s worth of goods, LCL shipping is a cost-effective solution. LCL shipping allows shippers to share the cost of a container with other companies transporting smaller loads. 

Less-than-Container-Load (LCL) shipping is beneficial in many situations, particularly when transporting small quantities of cargo. LCL shipping is a cost-effective way to transport smaller shipments that do not fill an entire container.

LCL Shipping vs. FCL Shipping

Distinctions LCL Shipping FCL Shipping
Full form Less than Container Load Shipping Full Container Load Shipping
Cost  Charged for volume of space goods take up in container Cost-effective if quantity shipped is sufficient to fill container
Transit Time Longer time as it is combined with other customers’ shipments Shorter time as only one shipment in the container


May vary depending on shipment’s origin, destination, amount of goods and extra services Volume discounts available but rates may increase due to container demurrage and detention fees
Consolidation Fees Charged for LCL shipments Not applicable if FCL shipment fills container
Optimal Strategy Evaluate shipping needs and work with a reputable logistics agency Determine optimal strategy with logistics agency based on shipment quantity, cost, and other factors


Benefits of LCL Shipping

When using LCL shipping, a number of smaller shipments are combined into one larger one. The benefits of LCL shipping include lower overall costs, greater market access, and less uncertainty. 

Decide about your shipment’s dimensions and weight, as well as the transit duration and local customs laws, before settling on LCL shipping. 

However, LCL shipping does have some drawbacks, such as longer transit times and the possibility of damaged or lost shipments.

Following are some of the LCL shipping benefits that make it an attractive option for shippers:


Smaller and medium-sized firms who don’t need to ship an entire container can save money by opting for less-than-container-load (LCL) shipping. Sharing a container with other shippers allows them to save money by not having to pay for a complete container themselves. Businesses can cut their transportation expenditures and shipping prices thanks to this.


Shippers don’t have to wait till they have enough products to fill a container because of LCL shipping. Smaller purchases can be shipped more often, allowing businesses to quickly adjust to changes in the market.

Reduced Risk

There is less potential for loss or damage with LCL shipping. Goods are safer in transit when numerous smaller shipments are combined into one container. Shipping firms that focus on LCL transport also tend to be more adept at handling and securing packages of a more modest size.


With low-cost LCL shipping options, even the smallest companies and sole proprietors may compete in global marketplaces. This has the potential to boost revenue and profitability for businesses.

Reduced inventory costs

Using LCL shipping, companies can save money on storage fees and increase profits. LCL shipping allows companies to send smaller quantities more frequently, reducing the need for stockpiling. In addition to lowering the possibility of overstocking, this can help firms save money on storage expenses.

Better carbon footprint

When compared to shipping with full containers, LCL can have a smaller environmental impact. This is due to the fact that LCL shipping companies make better use of empty container capacity and send fewer containers back unopened. As a result, less energy and fuel will be needed to transport the items, lowering the environmental impact.

Disadvantages of LCL Shipping:

Delay in delivery – LCL shipping can lead to delays as multiple shipments need to be consolidated, and customs clearance can be more time-consuming.

Handling risks – The consolidation of multiple shipments into a single container can increase the risk of mishandling and damage during loading and unloading.

Limited space – Space in the container is shared by multiple shippers, which can result in space constraints and limited cargo capacity.

Inefficient packaging – LCL shipping requires careful packaging to ensure that individual shipments are protected during transportation.

Higher cost per unit – Although LCL shipping can be more cost-effective for smaller shipments, the cost per unit may be higher compared to full container shipments.

Is LCL Shipping Right for Your Business?

For companies with fewer or smaller shipments, LCL shipping is the most cost-effective alternative. You may sell to a wider customer base, cut down on storage fees, and protect your inventory from harm. 

However, there are some drawbacks to LCL shipping, such as longer transit times and the possibility of damage or loss of goods. Think about your shipment’s dimensions and weight, as well as the transit duration and local customs laws, before settling on LCL shipping.


For companies with fewer shipments, LCL shipping is the most cost-effective alternative. You may sell to a wider customer base, cut down on storage fees, and protect your inventory from harm. 

Think about your shipment’s dimensions and weight, as well as the transit duration and local customs laws, before settling on LCL shipping. You may avoid the pitfalls of LCL shipping and guarantee on-time delivery by working with a reputable goods forwarder.


What is LCL shipping full form?

LCL stands for less than a container load.

What is the difference between LCL and FCL shipping?

LCL shipping means that your shipment does not fill an entire container and will be consolidated with other shipments to fill the container. FCL shipping means that your shipment fills an entire container

How is LCL cargo charged?

LCL shipping is charged based on the space your shipment takes up in the container. The more space your shipment takes up, the more you will pay.

What are some tips for using LCL shipping?

Some tips for using LCL shipping include planning ahead, packing your goods properly, choosing a reliable freight forwarder, and understanding customs regulations.

Is LCL shipping right for my business?

LCL shipping is a cost-effective option for businesses that have smaller shipments. However, before deciding on LCL shipping, consider the volume and weight of your shipment, the transit time, and the customs regulations in the destination country.

Understanding Incoterms: Meaning, Types, and Rules for Global Trade

International trade has been an important part of the world economy for a long time. International trade has become more pervasive and intricate as a result of globalization’s ascent. The use of Incoterms is a crucial part of international trade. International Commercial Terms (Incoterms) is an agreed upon set of procedures for conducting business across international borders. 

The International Chamber of Commerce (ICC) established Incoterms, or “International Commercial Terms,” to standardize the rights and responsibilities of buyers and sellers in international trade.

In this comprehensive guide to Incoterms, we’ll explore what are incoterms, their meaning, their significance, incoterms types, and how they impact international trade and the difference between Incoterms 2010 and Incoterms 2020.

Importance of incoterms in international trade

Incoterms play a critical role in international trade, and their importance cannot be overstated. They provide a standardized framework for international trade that reduces the risk of misunderstandings and disputes between buyers and sellers. Here are some of the importance of Incoterms:

Clarifies responsibilities and obligations

Incoterms help to clearly define the responsibilities and obligations of the buyer and seller in an international trade transaction. This includes who is responsible for arranging and paying for transport, insurance, and customs clearance, as well as who bears the risk of loss or damage to the goods during transport.

Provides a common language

Incoterms provide a common language for buyers, sellers, and carriers to use when negotiating and executing contracts for the transportation of goods. This common language helps to minimize the risk of misunderstandings and disputes, which can lead to costly delays and legal issues.

Streamlines import and export process

Incoterms provide a framework for addressing many of the logistical and operational issues that arise when goods are transported across borders. This helps to streamline the import and export process, making it easier for businesses to trade internationally.

Reduces risk

By clearly defining the responsibilities and obligations of each party, Incoterms help to reduce the risk of disputes and misunderstandings. This can help to minimize the risk of delays and financial losses, which can be especially important for small and medium-sized businesses.

Provides legal certainty

Incoterms provide a standardized set of rules that are recognized and accepted worldwide. This provides legal certainty for all parties involved in the transaction, as it helps to ensure that everyone is operating under the same set of rules and regulations.

Eliminates language barriers

Since Incoterms provide a common language for buyers, sellers, and carriers to use when negotiating and executing contracts for the transportation of goods, it helps to eliminate language barriers that may exist between different parties.

Encourages international trade

Incoterms help to facilitate international trade by providing a set of rules and regulations that are recognized and accepted worldwide. This can help to encourage businesses to trade internationally, as it helps to reduce the complexity and risk associated with cross-border transactions.

Types of Incoterms and their significance

There are currently 11 Incoterms types in use, and they are grouped into four categories—E,F, C, and D—based on the level of responsibility assigned to the buyer and seller. These terms are divided into categories based on the delivery location and who is responsible for covering the cost of each part of the journey. Within each category, there are sub-categories that refer to various scenarios.

When choosing an incoterm, it is important for both buyers and sellers to carefully review each term and select the one that best suits their specific shipment. It is important to consider factors such as transportation costs, insurance coverage, and the risk of loss or damage during transportation. By selecting the appropriate incoterm, buyers and sellers can avoid misunderstandings and disputes, ensuring a smooth and successful transaction.

The 11 types of incoterms: 

    EXW – Ex Works 

    FCA  – Free Carrier 

    CPT  – Carriage Paid To

    CIP –  Carriage and Insurance Paid To 

    DAP – Delivered at Place 

    DPU – Delivered at Place Unloaded

    DDP – Delivered Duty Paid

    FAS – Free Alongside Ship 

    FOB – Free on Board 

    CFR – Cost and Freight 

    CIF –  Cost Insurance and Freight

Incoterms rules for any mode of transport

Delivered Duty Paid (DDP), Delivered at Place (DAP), and Ex Works (EXW) are popular instances of Incoterms norms for any form of transportation. The seven Incoterms rules for any mode of transportation are as follows:

FCA: Free Carrier 

EXW: Ex Works

CPT: Carriage Paid To

CIP: Carriage and Insurance Paid To

DAP: Delivered at Place

DPU: Delivered at Place. 

DDP: Delivered Duty Paid Unloaded

For instance, DPU states that the vendor must deliver the goods to a terminal and bear all risk and transportation expenses until the goods arrive and are unloaded. The client then assumes the risk and expense of transporting the goods from the terminal to their final destination.

DDP indicates that the vendor is responsible for all risks and transportation expenses. Moreover, the seller must approve the goods for export at the port of shipment and import at the destination. In addition, the vendor must pay export and import duties on DDP shipments.

Under Incoterm Ex Works (EXW), the vendor is only required to make the items available for pickup at the seller’s business address or another designated location. Under EXW, the customer is responsible for all risks and transportation costs.

In 2010, the two primary Incoterms categories were modified and classified by modes of transportation. The first classification applies to all modes of transportation, whereas the second applies exclusively to maritime and inland canal transportation.

Incoterms rules for sea and inland waterway transport

The International Chamber of Commerce (ICC) has particular Incoterms rules for inland waterway and marine shipping, such as Cost, Insurance and Freight (CIF) and Free on Board (FOB). The Incoterms for sea and inland waterway transportation are as follows:

  • FAS stands for Free Alongside Ship.
  • FOB stands for “Free on Board.”
  • CFR stands for Cost and Freight.
  • CIF stands for Cost, Insurance, and Freight.

For instance, under free on board (FOB) shipment arrangements, the seller would deliver the goods to the buyer aboard a vessel of the customer’s choosing. The complete risk and transportation costs may be borne by the buyer or the seller, depending on whether the items are sold at the FOB shipping point or FOB destination point.

In a Cost, Insurance, and Freight (CIF) clause, the seller is obligated to ship the goods to the buyer at their expense and load them into a specified vessel at a specified port. After the cargo has arrived at the chosen port, the buyer is responsible for transporting it to its warehouse or place of business

Incoterms 2020 vs. Incoterms 2010

The most recent version of Incoterms is Incoterms 2020, which replaced the previous version, Incoterms 2010.

Here are some of the key differences between Incoterms 2020 and Incoterms 2010:

Difference Incoterms 2020 Incoterms 2010
New Incoterm DPU (Delivered at Place Unloaded) replaces DAT (Delivered at Terminal) DAT (Delivered at Terminal)
FCA Seller responsible for export clearance, buyer responsible for import clearance No clarification on export/import clearance
Security-related requirements Parties must provide information on goods, buyer must notify seller of special security measures No specific security-related requirements
Insurance Seller required to provide minimum level of insurance coverage for certain Incoterms (CIF and CIP) No specific insurance requirements
Obligations and costs Updated to reflect changes in transportation practices and costs Based on 2010 practices and costs
Renaming of Incoterms DAP renamed to DPU for clarity No renaming of Incoterms
Transport-related costs More detailed guidance on allocation of transport-related costs Less detailed guidance on transport-related costs
Digitalization Includes guidance on use of electronic records and documents No specific guidance on digitalization
Security-related costs Security-related costs allocated to party requesting security measure No specific guidance on security-related costs
Transfer of risk Clarifies transfer of risk and types of risks transferred Based on 2010 practices and risks

Choosing the right Incoterms for your business

When choosing the right Incoterm for your business, it’s essential to consider the specific needs of your business, the nature of the goods being shipped, and the shipping method. For example, if you’re shipping goods that require special handling, you may want to choose an Incoterm that places more responsibility on the seller, such as FOB (Free on Board) or CIF (Cost, Insurance, and Freight).

Incoterms rules can also impact shipping and logistics. For example, the choice of Incoterm can determine who is responsible for arranging and paying for transportation, insurance, and customs clearance. This has the potential to greatly affect shipping costs and productivity.

Advantages and disadvantages of Incoterms Rules

While they offer many benefits, they also come with a few drawbacks. Here are some of the advantages of incoterms and disadvantages of incoterms:

Advantages of Incoterms

Clarity and consistency

Incoterms provide a clear and consistent set of rules for international trade, making it easier for buyers and sellers to understand their respective obligations and responsibilities.

Reduced risk

The potential for disagreements and misunderstandings is diminished when incoterms are used since they make it clear what is expected of each side. This can be beneficial for the bottom line and for keeping the peace in the workplace.

Increased efficiency

Incoterms help to streamline international trade by standardizing procedures and documentation. This can result in faster processing times and lower costs.

Better cost control

Incoterms help to ensure that all costs associated with the transaction are agreed upon in advance. This can help to prevent unexpected expenses from arising and allow for better cost control.


Incoterms offer a range of options for buyers and sellers to choose from, allowing them to select the terms that best meet their needs.

Disadvantages of Incoterms


Incoterms can be complex, particularly for those who are unfamiliar with international trade. This can lead to confusion and misunderstandings.

Legal implications

Legal problems can arise from a failure to comply with Incoterms because they are binding. The ramifications of the selected incoterm must be understood by both the buyer and the seller.

Limited scope 

Incoterms only cover a limited range of issues related to international trade. Other aspects of the transaction, such as payment terms and intellectual property rights, may need to be addressed separately.

Cultural differences

Incoterms may not take into account cultural differences or business practices in different countries. This can create misunderstandings and conflicts.

Lack of customization

Incoterms are standardized and may not be able to fully accommodate the unique needs of certain transactions. This can lead to a loss of flexibility and control.


Incoterms rules facilitate global trade. They are differentiated by modes of transportation into those that utilize any mode and those that utilize water transport exclusively. The terms categorize buyer and seller responsibility, but they do not cover certain aspects of trade, such as the products being sold or future liability responsibilities. It is recommended to utilize Incoterms as a means to clarify agreements, but not as the only basis for the agreement itself.

For businesses engaging in international trade, familiarity with Incoterms is essential. By choosing the right Incoterm for your business, you can ensure that you are allocating responsibilities and risks appropriately. While there are disadvantages of Incoterms rules, their advantages far outweigh the cons of incoterms, making them an essential tool for incoterms in international trade.

Incoterms can be a useful tool for facilitating international trade, but they should be used with care and attention to detail. Buyers and sellers should ensure that they fully understand the implications of the chosen incoterm and seek expert advice if necessary.


What are Incoterms?

Incoterms (International Commercial Terms) are a standard set of trade terms used in international transactions to determine the buyer’s and seller’s responsibilities and liabilities regarding the delivery of products, the transfer of risk, and payment obligations. The International Chamber of Commerce (ICC) has published these terms.

How many Incoterms types are there?

There are currently 11 Incoterms types that are recognized by the ICC. These are:

EXW (Ex Works), 

FCA (Free Carrier), 

FAS (Free Alongside Ship), 

FOB (Free on Board), 

CFR (Cost and Freight), 

CIF (Cost, Insurance, and Freight), 

CPT (Carriage Paid To), 

CIP (Carriage and Insurance Paid To), 

DAP (Delivered at Place), 

DPU (Delivered at Place Unloaded), 

DDP (Delivered Duty Paid).

What is the purpose of Incoterms?

The purpose of Incoterms is to provide a universal set of rules that buyers and sellers can use to elucidate their respective responsibilities and obligations in international trade. Incoterms reduce misunderstandings, disputes, and litigation that can result from disparities in legal systems, business practices, and cultural norms by defining the obligations of each party at various stages of the transaction. In addition, they help facilitate global trade by promoting standardization and simplification of international transactions and by providing a common language for global merchants.