The purpose of "Incoterms" is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. Thus, the uncertainties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree.

Frequently parties to a contract are unaware of the different trading practices in their respective countries. This can give rise to misunderstandings, disputes and litigation with all the waste of time and money that this entails. In order to remedy these problems the International Chamer of Commerce first published in 1936 a set of international rules for the interpretation of trade terms. These rules were known as "Incoterms 1936", Amendments and additions were later made in 1953, 1967, 1976, 1980, 1990 and presently 2000 in order to bring the rules in line with current international trade practices.

The above is a brief summary of Incoterms terms. However, for a more detailed understanding a full set of 

Incoterms terms are available from most Chambers of Commerce.