The incoterms were formulated and specified by the International Chamber of Commerce (ICC).  They enable sellers and buyers to specify the transfer of risks and costs, as well as certain obligations, in their purchases contracts.  The Incoterms are regularly revised in order to meet the changing needs of commerce and transport.

The most recent version of the incoterms is Incoterms® 2010.  Sellers and buyers should clearly define in their purchase contract which version of the Incoterms applies to their agreement (e.g. Incoterms® 2010).  It should always be ensured that for each Incoterm the designated location is specified and defined as precisely as possible.