The INCOTERMS (International Commercial Terms) is a universally recognized set of definitions of international trade terms.
These are a series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods. Incoterms inform sales contract defining respective obligations, costs, and risks involved in the delivery of goods from the seller to the buyer. The incoterms are used in conjunction with a sales agreement or other methods of transacting the sale.
Failure to understood or clearly communicate these terms may result in severe cost implications for a company. This article briefly recites some of the terms that are regularly used in industrial services.