Incoterms

Incoterms are international trade terms used to describe the payment and goods handling arrangement between the seller and buyer.

What is Incoterms ?
Incoterms are international trade terms developed by the International Chamber of Commerce to define the responsibilities of the buyer and seller and the costs, tasks and risks associated with the transportation of the freight. 

Incoterms are usually represented in a 3 letter format, for instance, DAP (Delivered at Place), FCA (Free Carrier), etc.