name few incoterms and explain

Question

Accepted Answer

Incoterms are international commercial terms that define the responsibilities of buyers and sellers in international trade.

EXW (Ex Works) - seller makes goods available at their premises
FOB (Free on Board) - seller delivers goods to the port of shipment
CIF (Cost, Insurance and Freight) - seller delivers goods to the port of destination and pays for insurance and freight
DDP (Delivered Duty Paid) - seller delivers goods to the buyer's premises and pays for all costs including duties and taxes
Incoterms help to avoid misunderstandings and disputes between buyers and sellers
They also help to determine the transfer of risk and responsibility from the seller to the buyer
Incoterms are regularly updated to reflect changes in international trade practices

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