Full definition
International Commercial Terms — a set of 11 standardized trade rules published by the International Chamber of Commerce (ICC) that define the responsibilities, costs, and risks between buyer and seller in international (and domestic) commercial transactions. Current version: Incoterms 2020 (effective January 1, 2020). The 11 rules in order of increasing seller obligation: EXW (Ex Works — minimum seller obligation), FCA (Free Carrier), CPT (Carriage Paid To), CIP (Carriage and Insurance Paid To), DAP (Delivered At Place), DPU (Delivered at Place Unloaded), DDP (Delivered Duty Paid — maximum seller obligation). Sea/waterway only: FAS (Free Alongside Ship), FOB (Free On Board), CFR (Cost and Freight), CIF (Cost Insurance and Freight). Most used for industrial goods in Mexico/LATAM: FOB (buyer controls freight — preferred for large shipments from Asia), CIF (seller includes freight and insurance — convenient for price comparison), EXW (minimum seller responsibility — common for domestic and intra-LATAM), and DDP (seller handles everything — simplest for buyer). Per ICC Incoterms 2020 rules (available from ICC, approximately $50 for the official publication). Always specify "Incoterms 2020" and the named place in contracts and purchase orders to avoid ambiguity.