Incoterms
Definition
Standard trade terms, set by the International Chamber of Commerce, that define who pays for shipping, insurance and duties, and when risk passes from seller to buyer.
Want a deeper explanation?
Incoterms decide what is included in your supplier's price and what you must add to reach landed cost. They also decide when goods in transit become your inventory.
Always confirm the Incoterm and named place on every quote. Watch for: DDP quotes that look cheap but hide duty assumptions you cannot verify.
Example
EXW means you pick up at the factory and pay everything after. FOB means the supplier loads the ship. DDP means the supplier delivers to your door with duties paid.