Incoterms rules are denoted by a three-letter abbreviation that clearly defines the responsibilities, costs, and risks associated with the transportation and delivery of goods. These rules are adopted and recognized by governments and businesses worldwide to clarify international trade terms.

Incoterms are divided into the following categories:

"E" Terms: This category includes terms where the seller delivers the cargo directly to the buyer at the seller’s premises.

"F" Terms: These terms require the seller to deliver the cargo to a carrier specified by the buyer.

"C" Terms: Under this category, the seller is responsible for paying the cost of transportation but does not assume the risk of accidental loss or damage to the cargo, nor any additional costs that may arise after loading and shipping.

"D" Terms: This category includes terms where the seller bears all costs and risks associated with delivering the goods to the buyer's specified destination, including the risk of accidental loss or damage.

The 7 terms of carriage as defined by Incoterms 2010 are:

EXW — Ex Works (named place of delivery)

FCA — Free Carrier (named place of delivery)

CPT — Carriage Paid To (named place of destination)

CIP — Carriage and Insurance Paid To (named place of destination)

DAT — Delivered At Terminal (named terminal at port or place of destination)

DAP — Delivered At Place (named place of destination)

DDP — Delivered Duty Paid (named place of destination)

The following are the four maritime transportation terms defined by Incoterms 2010:

FAS — Free Alongside Ship (named port of shipment)

FOB — Free On Board (named port of loading)

CFR — Cost and Freight (named port of destination)

CIF — Cost, Insurance, and Freight (named port of destination)