1. International Commercial Terms

2. International Commercial Terms
Incoterms is a set of standard rules written to define the responsibilities of the buyer and the seller in relation to the costs and risks involved in the movement of goods internationally.
Both the buyer and the seller agree to use a specific Incoterm for a particular transaction and this term is included in the contract of sale.
Incoterms do not provide for all of the aspects of the transaction
The use of an Incoterm in conjunction with a quoted price provides the importer with an understanding of what other costs are included in the quoted price, apart from just the cost of the goods

3. International Commercial Terms
Incoterms are divided into two categories based on the mode of transport used.
Group 1 – Incoterms that apply to any mode of transport

4. International Commercial Terms
Group 2 – Incoterms that apply to sea and inland waterway transport only