Trade terms, published by the International Chamber of Commerce (ICC), that are commonly used in international contracts. Investopedia explains Incoterms Incoterms are used to make international trade easier by helping traders in different countries understand one another.
Trade terms used internationally (such as Incoterms) are often identical in form to domestic terms (such as the American Uniform Commercial Code), but have different meanings. Therefore, it is important to indicate the particular law that governs their terms. For example, to use the Incoterm definition, a contract might refer to: “FOB (Incoterms 2000).” 1)