CUSTOMS & TRADE DEFINITION
Incoterms Rules
Authoritative Definition
Incoterms (International Commercial Terms) are standardized 3-letter trade terms published by the International Chamber of Commerce (ICC) defining buyer and seller obligations for risk, freight costs, insurance, and customs clearance.
Why It Matters in International Trade
Determines whether valuation is assessed under FOB or CIF rules (e.g. EXW, FOB, CIF, DDP).