Incoterms are rules about the conditions of supply of goods and products in international trade. Its main objective is to establish criteria defined on the distribution of costs and risks between the buyer and the seller in an international sales contract.
Incoterms regulate basically four basic aspects of international sales contract: the delivery of goods, transfer of risk, cost and distribution of customs formalities.
Its main advantage is to be simplified using 11 terms (Incoterms 2010) standard conditions that have to meet the two contracting parties during the process of buying or selling goods in another country.