The Incoterms (International Commercial Terms) are a set of internationally recognized rules and regulations that govern the responsibilities and risks between buyers and sellers in international trade transactions. They specify who is responsible for the costs and transportation of goods and at what point in the transportation process the transfer of ownership of the goods takes place.

The Incoterms are agreed upon in purchase contracts and must be clearly and unambiguously defined.

The Incoterms used in your purchase contract depend on the negotiations between you (the buyer) and the seller.