Incoterms are standard trade definitions most commonly used in international sales contracts. Devised and published by the International Chamber of Commerce, they are at the heart of world trade.
Among the best known Incoterms are EXW (Ex works), FOB (Free on Board), CIF (Cost, Insurance and Freight) and CPT (Carriage Paid To).
The following chart summarizes the responsibilities of both the buyer and seller for each of the current 11 INCOTERMS. In addition, a definition for each term is included at the bottom of the page.