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Incoterms

Also known as: International Commercial Terms

Incoterms are standardised international trade terms that define who is responsible for shipping, insurance, duties and risk at each stage of a delivery.

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Published by the International Chamber of Commerce, Incoterms (such as EXW, FOB, CIF and DDP) create a common language so buyer and seller know exactly where responsibility and risk transfer between them — who pays freight and insurance, who handles export and import clearance, and at what point the goods become the buyer's risk.

Getting Incoterms right avoids costly disputes and surprise charges. They matter most in cross-border trade, but the principle of clearly defining delivery responsibility applies to any supply arrangement.

Frequently asked questions

What are Incoterms?
Incoterms are standardised international trade terms, published by the International Chamber of Commerce, that define who is responsible for shipping, insurance, duties and risk at each stage of a delivery.
Why do Incoterms matter?
They remove ambiguity in cross-border trade about who pays for freight, insurance and customs, and exactly when risk passes from seller to buyer — preventing disputes and unexpected costs.

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