INCOTERMS are a set of uniform rules that define the trade terms in international arena. These define the rights and obligations of parties involved in an international transaction.
The INCOTERMS are drafted and published by ICC (International Chamber of Commerce)
INCOTERMS do not cover ownership or the transfer of title of goods. It is crucial to agree on the INCOTERMS at the start of the negotiation between the buyer and seller, as it affects the costs and responsibilities involved in shipping, insurance and tariffs.