Delivery rules published by the International Chamber of Commerce (ICC) that define how delivery, risk and costs are shared between buyer and seller.
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Incoterms (International Commercial Terms) are standard rules that define where goods are delivered, at which point risk passes from seller to buyer, and who bears costs such as freight, insurance and customs. The current version is Incoterms 2020.
Incoterms do not govern transfer of ownership, payment terms or the contract as a whole; these must be set out separately in the sales contract. The rule should be written together with the named place and version (e.g. FOB Shanghai Incoterms 2020).