Incoterms are standardized trade terms that define buyer and seller responsibilities in international trade, covering shipping, insurance, and delivery.
Key Examples:
EXW: Buyer handles all costs and risks from seller’s location.
FOB: Seller delivers to the ship; buyer assumes risks after loading.
CIF: Seller covers cost, insurance, and freight to the destination port.
DDP: Seller handles all costs, including customs and delivery.
Used to simplify global trade and reduce disputes.