INCOTERMS (International Commercial Terms)

INCOTERMS, or International Commercial Terms, are a set of pre-defined terms used in international trade agreements to define the respective obligations and responsibilities of buyers and sellers. These terms cover such issues as risk transfer, payment arrangements, transportation costs, and delivery times. By clearly specifying who is responsible for what aspects of an international business transaction, INCOTERMS help ensure that all involved parties are clear about their respective rights while mitigating the risk associated with the sale and purchase of goods.