Incoterms stand for “International Commercial Terms”, and they are set by the International Chamber of Commerce (ICC) every 10 years. The current edition of these rules is from 2010.

The incoterms have different abbreviations for terms like FOB (Free On Board), DAP (Delivery At Place), and CIF (Cost, Insurance & Freight).

These terms clearly lay out what the buyer and seller are responsible for when handling, transporting and delivering goods.