Trade terms, also known as Incoterms, are a set of standardised terms used in international trade to define the responsibilities and obligations of buyers and sellers in the process of shipping goods from one country to another.
Trade terms specify the tasks, costs, and risks associated with the transportation and delivery of goods, such as the responsibility for insurance, customs clearance, and transport costs. They cover the delivery of goods, transfer of risk, and transfer of costs between the buyer and seller. The most commonly used trade terms are FOB (Free on Board), CIF (Cost, Insurance, and Freight), and EXW (Ex-Works).
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