Incoterms rules

Roles that need it

• Trade Finance Analyst
• Trade Finance Operations Specialist
• Corporate Treasury Analyst

Skills it belongs to

• Trade finance instruments (letters of credit, guarantees, collections)

Related concepts

• Letter of credit (documentary credit)A letter of credit, also called a documentary credit, is a bank's undertaking to pay a seller a stated amount if the seller presents documents that comply with the credit's terms. It replaces the buyer's credit risk with a bank's and is usually subject to the ICC rules UCP 600. A confirmed credit adds a second bank's undertaking.
• Bill of ladingA bill of lading is the document a carrier issues for goods shipped by sea. It is a receipt for the goods, evidence of the contract of carriage and, when negotiable, a document of title, so whoever holds it can claim the goods. Banks often require a full set of original bills under letters of credit and documentary collections.
• Documentary collectionA documentary collection is a trade payment method in which the seller's bank sends shipping documents to the buyer's bank, which releases them only against payment (documents against payment, D/P) or acceptance of a bill of exchange (documents against acceptance, D/A). The banks give no payment undertaking. The ICC rules URC 522 usually apply.

Sources

• Incoterms rules, International Chamber of Commerce (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.