What is Incoterms?

Incoterms® (International Commercial Terms) are a set of eleven standardized trade terms published by the International Chamber of Commerce (ICC), updated in 2020. Each term precisely allocates who pays which costs, where the risk of loss transfers, who arranges insurance and who handles export and import customs — removing ambiguity from international sales contracts. See the full interactive breakdown on Paddock's Incoterms 2020 explorer.