Incoterms are international conditions of sale published by the International Chamber of Commerce (ICC) first published in 1936. They are periodically updated, with the eighth version— Incoterms® having been published on January 1, 2011. Their purpose is to provide “universal” rules to define the seller’s and buyer’s obligations during a commercial transaction and to reduce or eliminate uncertainties arising from different interpretation of the rules in different countries. Incoterms rules are intended to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods and they are accepted by governments, legal authorities, and practitioners worldwide.

There are four different groups

 

E	F	C	D
EXW ex works	FCA free carrierFAS free alongside shipFOB free on board	CFR cost and freightCIF cost, insurance, freightCPT carriage paid toCIP carriage and insurance paid	DAP delivered at placeDAT delivered at terminalDDP delivered duty paid

Allocations of costs to buyer/seller according to Incoterms 2010