Incoterms

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This overview is a guide to the Banking & Finance content within the Incoterms subtopic within the trade and commodity finance topic, with links to the appropriate materials.

What are Incoterms and what is their origin?

Incoterms—an abbreviation of 'International Commercial Terms'—are a set of globally recognised terms and conditions used in international, and sometimes domestic, contracts for the sale and purchase of goods. They comprise a set of 11 three letter acronyms/abbreviations each representing a different set of provisions dealing with the allocation of duties, costs and risks in a sale and purchase contract. The intention of Incoterms is to achieve a consistency of understanding and interpretation of contractual terms, particularly where contracts involve multiple legal jurisdictions.

The International Chamber of Commerce (ICC) publishes a set of rules for the interpretation of Incoterms explaining the meaning of each of the terms. These rules were first published in 1936 and are updated periodically to reflect changes in trade practices.

The ICC released Incoterms 2020 in September 2019 (see: LNB News 10/09/2019 69). Incoterms 2020 replaced the 2010 version of the rules with effect from

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Latest Banking & Finance News

Commission adopts ‘quick fix’ amendments to European Sustainability Reporting Standards

The European Commission has adopted a Delegated Regulation amending Delegated Regulation (EU) 2023/2772 which sets out the European Sustainability Reporting Standards (ESRS). The ESRS specify the information which companies must disclose against pursuant to their sustainability reporting obligations under the EU Corporate Sustainability Reporting Directive (CSRD). The proposed ‘quick fix’ amendments are designed to reduce the reporting burden on companies already reporting pursuant to the CSRD for the 2024 financial year (so called ‘wave one’ companies). Pursuant to the ‘Stop the Clock’ Directive adopted as part of the sustainability omnibus package of February 2025, wave two and three companies have seen their reporting obligations delayed by two years. Wave one companies were not captured by this change, hence today’s proposal. Preparations are underway for a broader revision of the ESRS framework as part of the sustainability omnibus package of reforms (which includes sweeping changes to the CSRD).

OFSI updates general guidance with new HM Treasury debt exception

The Office of Financial Sanctions Implementation (OFSI) has updated its Financial sanctions general guidance to reflect the introduction of the HM Treasury debt exception under the Sanctions (EU Exit) (Treasury Debt) Regulations 2025, SI 2025/712. The exception, set out in Section 6.21 of the guidance, permits certain payments involving designated persons under specific UN sanctions regimes, provided the obligation arose prior to the designation and the funds are credited to specified account types. OFSI has also updated the relevant country-specific guidance for Libya, the Central African Republic, South Sudan, Yemen and Haiti to reflect the application of this exception and the associated compliance requirements.

Banking and Finance weekly highlights—10 July 2025

This week's edition of Banking and Finance weekly highlights includes: (1) LMA publishes recommended forms for euro exposure drafts with EURIBOR fallbacks; (2) HM Land Registry updates Practice Guide 82 relating to electronic signatures; and (3) ICMA publishes Q3 2025 report on market practice and regulatory policy.

OFSI updates UK Financial Sanctions FAQs

The Office of Financial Sanctions Implementation (OFSI) has updated its UK Financial Sanctions FAQs, adding FAQ 153, which explains how OFSI applies the term 'domiciled' in financial sanctions legislation.

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