Incoterms are internationally recognized and harmonized terms that spell out the specific obligations of parties to transactions involving the purchase and sale of goods involving shipment and delivery risks.
Published by the International Chamber of Commerce, the Incoterms rules allow buyers and sellers to transact business with the certainty that each understands:
- The various obligations of the seller and the buyer
- The point at which the risk of loss or damage to the goods passes from the seller to the buyer
- Which party bears the various costs associated with the shipment
- Which party is responsible for insuring the goods
