Internationally recognized trade terms published by the ICC that define the responsibilities, costs, and risks between buyers and sellers for the delivery of goods.
Incoterms (International Commercial Terms) are a set of standardized trade rules published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international transactions. They specify who pays for shipping, insurance, and customs duties, and at what point risk transfers from seller to buyer.
Common Incoterms include EXW (Ex Works), FOB (Free on Board), CIF (Cost, Insurance and Freight), and DDP (Delivered Duty Paid). Understanding Incoterms is essential when negotiating with manufacturers, as they directly impact total landed cost. When comparing quotes from suppliers on FindMyFactory, ensuring all prices reference the same Incoterm is critical for accurate comparison.