A Critical Analysis Of Adopting Inco Terms In Export Import Transactions With View Of Export-Import Duty

In today’s globalized economy, International trade has become more dynamic than ever, connecting countries, businesses and consumers across borders. Yet, as goods move from one jurisdiction to another, the complexities of shipping terms, customs valuation and duty assessment often pose significant challenges. In this context, Incoterms or International Commercial Terms play a crucial role in shaping the responsibilities, costs and risks involved in cross-border trade. First introduced by the International Chamber of Commerce (ICC), Incoterms are designed to bring clarity and standardization to trade contracts. These terms define at what point the ownership of goods transfers from the seller to the buyer and who is liable for shipping, insurance and customs charges. However, despite their widespread usage, many stakeholders particularly in the Indian trade ecosystem struggle to understand how Incoterms directly impact customs valuation and by extension, the calculation of export and import duties.