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Incoterms are a set of rules which defines the responsibilities of sellers and buyers for the delivery of goods under international trade. Incoterms are used to create a bridge between different members of the industry by acting as a uniform language they can use.It defines appropriate costs and responsibilities which are associated with the delivery of goods between buyer(importers) and supplier(exporters). The first incoterms was released in 1936. The most recent version of incoterms is incoterms(2010) and became effectine january 1,2011.
Incoterms also deals with the documentation part of Global Trade, defines which parties are responsible for which document. In the end, however, the terms wind up boiling down to a few basic specifics:
Incoterms are listed by categories. These categories are listed as follows:-