International Commercial Terms or, as they are commonly referred to -- Incoterms -- are a set of pre-defined commercial terms developed by the International Chamber of Commerce to standardize and clearly define each party’s responsibilities in international commercial transactions. More specifically, incoterms defines the transaction between the seller and buyer so that there is a common understanding on who owns risk, financial responsibility and logistics along the continuum of getting goods from point A (Seller) to point B (international buyer).