INCOTERMS

International Commercial Terms are standardized trade terms published by the International Chamber of Commerce defining responsibilities for shipping, insurance, tariffs, and risk transfer in international transactions. INCOTERMS specify which party handles logistics and when ownership transfers.

INCOTERMS usage in government contracts clarifies international shipping responsibilities. Understanding INCOTERMS helps contractors price and manage international deliveries appropriately. Common INCOTERMS include FOB, CIF, and DDP, each with different risk and cost allocation.