Incoterms

Formal

The name for a family of internationally recognised trading terms, that allows pricing/delivery/other contractual obligations to be standardised, and have the same interpretation throughout the world. Eg ‘CIF London’ means Carriage, Insurance, and Freight paid by supplier to London destination of customer.

Real-world Example

An exporter and an overseas buyer agree the sale is 'FOB' (Free On Board) under Incoterms rules, meaning the seller's responsibility for the goods ends once they're loaded onto the ship, and the buyer takes over risk and cost from there.