You would not purchase a product without knowing the price. Therefore, why purchase a product without understanding the terms? When negotiating an international sales contract, both parties need to pay as much attention to the terms of sale as to the sales price. To make it as clear as possible, an international set of trade terms (INCOTERMS) have been adopted in many countries as a standard. INCOTERMS define the exact responsibilities and risks of both the buyer and seller.
Click here to review the chart summarizing the responsibilities of both the buyer and seller for each of the current 13 INCOTERMS.