INCOTERMS (International Commercial TERMS) were developed by the International Chamber of Commerce (ICC). They are a uniform set of rules designed for the interpretation of international transactions.

The rules were first published in 1936 and have been revised periodically to account for changing modes of transport and document delivery.

The current version is Incoterms 2000.

Incoterms 2000 groups the terms in four categories, denoted by the first letter in the three- letter abbreviation:

• “E”-terms (EXW): The seller only makes the goods available to the buyer at the seller’s own premises

• “F”-terms (FCA, FAS & FOB): The seller is called upon to deliver the goods to a carrier appointed by the buyer.

• “C”-terms (CFR, CIF, CPT & CIP): The seller has to contract for carriage, but without assuming the risk of loss or damage to the goods or additional costs due to events accruing after shipment or dispatch.

• “D”-terms (DAF, DES, DEQ, DDU and DDP): The seller has to bear all costs and risks needed to bring the goods to the place of destination.