---
title: "Incoterms®"
description: "Incoterms® are terms of sale that define who arranges for the payment and handling of goods during shipping, from the moment they leave the seller's door until their arrival at the buyer's final destination."
language: en
canonical: https://www.flex.thisisbrew.com/glossary/incoterms/
lifecycle: live
dateModified: 2026-08-20T06:44:09Z
topics:
  - "Customs & Compliance"
  - "Global"
  - "Ocean Freight"
---

# Incoterms®

Incoterms® are terms of sale that define who arranges for the payment and handling of goods during shipping, from the moment they leave the seller's door until their arrival at the buyer's final destination.

## What Are Incoterms®?

Incoterms® are terms of sale that define who arranges for the payment and handling of the goods during shipping, from the moment the goods leave the seller’s door, up until their arrival at the buyer’s final destination.

![Incoterms chart mapping 11 terms (EXW, FCA, FAS, FOB, CPT, CFR, CIF, CIP, DPU, DAP, DDP) across shipping stages, showing seller vs buyer cost and risk transfer points plus insurance.](https://cdn.sanity.io/images/ynj1yl20/development/7bee5d1283173803e96ae564f0082599506f64b2-2117x1355.png)

“Incoterms®” is shorthand for “International Commercial Terms” as defined by the [International Chamber of Commerce](https://iccwbo.org/) and they are revised from time to time.

On September 2019, the ICC published the latest edition of the Incoterms®, commonly known as “Incoterms® 2020," which brought a few material changes to the Incoterms®. Beginning on 1 January 2020, the Incoterms® 2020 will be applied to all contracts of sale unless the parties specify that they would like to continue using [Incoterms® 2010](https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-rules-2010/). The switch to Incoterms® 2020 is NOT mandatory, so it’s possible that some clients will continue to use Incoterms® 2010.

Incoterms® are an agreement between the seller and the buyer.

**It is ultimately up to the buyer and the seller to agree on each party's responsibility of cost and risk before the shipment begins.**

Back to the [full glossary](https://www.flex.thisisbrew.com/glossary/).

---

*This is a markdown version of [https://www.flex.thisisbrew.com/glossary/incoterms/](https://www.flex.thisisbrew.com/glossary/incoterms/) for AI/LLM consumption.*