Purpose and Importance of Incoterms in International Trade

Incoterms are basically a set of standard trade terms put out by the International Chamber of Commerce (ICC). They're used in trade contracts, both international and domestic, to make it super clear who's responsible for what – especially when it comes to delivery, risk, and costs. Why do we even have Incoterms? To stop things from getting messy in international trade. To figure out who's in charge of shipping, insurance, customs, and transport costs. To make it obvious when the buyer takes over ownership and risk from the seller.