Incoterms are to define the responsibilities of buyers and sellers for the delivery of goods under sales contracts. It is the authoritative rules to determine the costs and risks allocated to the parties. They are used regularly incorporated into the contracts for the sales of goods worldwide and it has become part of the language by all major trading nations.
The Origin of Incoterms
The first version of Incoterms rule was created in 1936 where they were officially designed as Incoterms. Since then, it has been evolved into a codified worldwide contractual standard. They are updated periodically in events in international trade occur and requires. These international trade terms are decided by 13 International Chamber of Commerce (ICC) commissions made up of experts from the private sector across the world.