What are Incoterms and how are they classified?

Incoterms are rules developed by the International Chamber of Commerce that are used in international sales contracts. These terms are used to determinate when risk to the merchandise and the responsibilities of the buyer and seller are transferred. Even being of voluntary use, most international transactions are governed by the rules established in the incoterms.

The following link details the classification of the different incoterms: incoterms 2020_eng