What Is Incoterms?

Standardized international trade terms defining who is responsible for shipping, insurance, and customs at each stage.

Incoterms (International Commercial Terms) are a set of standardized, internationally recognized rules published by the International Chamber of Commerce that define exactly where cost and risk transfer from seller to buyer during a shipment. Common terms used in wholesale garment sourcing include EXW, FOB, CIF, and DDP, each shifting a different share of freight booking, insurance, and customs responsibility onto one party or the other. Choosing the right Incoterm for your experience level and freight capability matters more than chasing the lowest quoted price on paper.