Incoterms (International Commercial Terms)
Incoterms are a set of standardized trade terms published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international transactions. These terms specify who is responsible for costs, risks, and tasks such as shipping, insurance, and customs clearance, facilitating smoother and clearer international trade agreements.
Related glossary terms
CIF (Cost Insurance Freight)
CIF is the Incoterm where the seller pays cost, insurance, and freight to the buyer's port of destination. Learn risk transfer points and CIF vs. CFR.
Free on Board (FOB)
Free on Board (FOB) is an Incoterm where the seller delivers goods onto the vessel at the named port, after which risk and cost transfer to the buyer.
Cargo Insurance
Cargo insurance is a risk management tool protecting against financial loss from damage, theft, or destruction of goods in transit by sea, air, road, or rail.
Commercial Invoice
Commercial invoice is the document used to declare cargo value, parties, and terms for customs. Learn required fields, duties impact, and common mistakes.
