Incoterms® rules explain standard terms that are used in contracts for the sale of goods.

They are essential ICC tools that help traders avoid misunderstandings by clarifying the costs, risks, and responsibilities of both buyers and sellers.

Because the rules are developed by experts and practitioners brought together by ICC, and involve a long consultative process, they are globally accepted and have become the standard in international business rules setting.

The Incoterms standard clauses are one example of the ICC rules governing international business activities, with rules setting making up one of the three pillars of ICC's activities along with policy advocacy and dispute resolution through arbitration.

Incoterms® 2010, will be launched in September and come into effect on 1 January 2011.