Incoterms®, correctly the Incoterms® Rules, and which stands for International Commercial Terms, are a set of commercial terms developed by the International Chamber of Commerce (ICC) and used by businesses engaged in trade to specify which party, buyer or seller, is responsible for each task in the sale and delivery of goods. There are 11 Incoterms® rules, each of which is a shorthand for a set of rules structuring a commercial sale and the accompanying delivery of goods in a particular manner. Each rule is set out in a three-letter abbreviation, such as FOB (Free on Board) and CFR (Cost & Freight), that parties may incorporate into their sales contract to allocate the duties, costs and risks in the sale transaction.

For example, the parties to a sale of steel ingots from a manufacturer in Shanghai to a buyer in Seattle may agree that the ingots will be shipped "FOB Shanghai". By including the FOB rule and Shanghai in their sales contract, the parties agree that:

The Incoterms® Rules were first published in 1935. They have been amended numerous times since then. The current version is the Incoterms® 2020 Rules, effective from 1 January 2020.

The Incoterms® Rules and the Incoterms® 2020 logo are trade marks of the ICC. Use of these trade marks does not imply association with, approval of or sponsorship by the ICC. The Incoterms® Rules are protected by copyright owned by the ICC. Further information on the Incoterms® Rules may be obtained from the ICC website.

Resources covering the Incoterms® Rules in detail are available for purchase on the ICC website.