Incoterms, short for “International Commercial Terms,” are a set of 11 internationally recognized trade terms developed by the International Chamber of Commerce (ICC) that define the responsibilities and costs for buyers and sellers in international trade transactions.
Here’s a more detailed explanation:

Purpose:

Incoterms clarify who is responsible for tasks like packaging, loading, transportation, insurance, and customs clearance, as well as who bears the costs and risks associated with these tasks.

Standardisation:

They provide a standardized language for international trade contracts, helping to avoid misunderstandings and disputes.
ICC Development:

The International Chamber of Commerce (ICC) develops and updates Incoterms, with the latest version being Incoterms 2020.

11 Terms:

The 11 Incoterms are:

EXW (Ex Works): Seller makes goods available at their premises.

FCA (Free Carrier): Seller delivers goods to the carrier at a named place.

FAS (Free Alongside Ship): Seller delivers goods alongside the vessel at a named port.

FOB (Free On Board): Seller delivers goods on board the vessel at a named port.

CFR (Cost and Freight): Seller covers the cost and freight to a named port of destination.

CIF (Cost, Insurance and Freight): Seller covers the cost, insurance, and freight to a named port of destination.

CPT (Carriage Paid To): Seller covers the cost of carriage to a named place of destination.

CIP (Carriage and Insurance Paid To): Seller covers the cost of carriage and insurance to a named place of destination.

DAP (Delivered at Place): Seller delivers goods at the named place of destination.

DPU (Delivered at Place Unloaded): Seller delivers goods at the named place of destination and unloads them.

DDP (Delivered Duty Paid): Seller delivers goods at the named place of destination, including all costs and duties.