Incoterms is terms for sale, which includes of 11 internationally recognized rules that define as the responsibilities of purchaser and vendor.

Incoterms designate payments and shipment operations, insurance, documentation, customs clearance, and other logistical activities.

The most seven popular rules for any mode(s) of transport are: 

    EXW - Ex Works (insert place of delivery)

    FCA  - Free Carrier (Insert named place of delivery) 

    CPT  - Carriage Paid to (insert place of destination) 

    CIP -  Carriage and Insurance Paid to (insert place of destination)  

    DAP - Delivered at Place (insert named place of destination)  

    DPU - Delivered at Place Unloaded (insert of place of destination)  

    DDP - Delivered Duty Paid (Insert place of destination).  

Each Incoterm rule shows which parties to the transaction, is responsible for contract of the shipment carriage.

Another significant point in each Incoterm rule is which parties should provide cargo insurance coverage.

Each rule also has statements, which party is responsible for packing the goods and for bearing the costs of any pre-shipment inspections.  

Each Incoterm rule specifies the vendor responsible for cargo delivery, place of delivery and its time.

Also ref to the delivery contracts, each rule clarifies when the risk of loss or damage to the goods being transferred from the vendor to the purchaser.