# International Commercial Terms (Incoterms®)

*Last updated: 2026-06-25*

> An exporter and a buyer have agreed on a price – but who pays ocean freight, who files the customs declaration, and at what point does risk pass?

An exporter and a buyer have agreed on a price – but who pays ocean freight, who files the customs declaration, and at what point does risk pass? Incoterms® answer exactly these questions. Published by the International Chamber of Commerce (ICC), they are eleven standardized trade terms ranging from EXW (Ex Works, minimum seller obligation) to DDP (Delivered Duty Paid, maximum seller obligation), specifying cost allocation, risk transfer, insurance responsibilities, and export/import customs duties for each party. Universally recognized in sales contracts and letters of credit, they do not replace governing law and address neither payment terms nor title transfer. They should not be confused with the UN Convention on Contracts for the International Sale of Goods (CISG), which governs the contract as a whole.

**Source:** [https://iccwbo.org/business-solutions/incoterms-rules/](https://iccwbo.org/business-solutions/incoterms-rules/)

## Quick Facts

| Property | Value |
|---|---|
| Term | International Commercial Terms (Incoterms®) |
| Language | EN |
| Word count | 125 |
| Last updated | 2026-06-25 |
| Source | https://iccwbo.org/business-solutions/incoterms-rules/ |

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*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/international-commercial-terms-incoterms](https://www.freight-academy.com/en/glossary/international-commercial-terms-incoterms)*

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