In trades, there are some unexpected troubles because of the difference of each country’s trade usage.
Incoterms (International Commercial Terms) is an international term enacted by International Chamber of Commerce (INCO) for preventing troubles like disputes or lawsuits which happens between the parties in these trades.
This incoterms typically demarcate terms and conditions in trades to 3 words alphabet,
and enact a range of risk and cost allocation(the point of freight delivery).
Quated from International Chamber of Commerce(ICC)