What is an Incoterm?

Incoterms, standing for International Commercial Terms, are set forth and copyrighted by the International Chamber of Commerce.  They are the prevailing international standard for delivery terms (or terms of sale) most widely used and understood throughout the world.  The use of Incoterms in international contracts is designed to reduce the potential for disputes between buyer and seller by describing exactly when responsibilities and assumed risks for the freight shift from one party to the other.