Incoterms

Stands for: International Commercial Terms

Standard three-letter trade terms published by the International Chamber of Commerce that allocate costs, risk and clearance duties between buyer and seller.

The current edition is Incoterms 2020. They do not transfer ownership or govern payment, so they sit alongside a sales contract. Always state the term, the named place and the edition, for example “FOB Chattogram, Incoterms 2020”.