What are Incoterms and why are they important to know?

Incoterms, or International Commercial Terms, are a set of standardized rules published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international trade. They specify who is responsible for various costs, risks, and tasks involved in the transportation of goods. Understanding Incoterms is crucial as they help avoid misunderstandings and disputes by clearly outlining the obligations of each party in a trade transaction.