Incoterms®, or International Commercial TERMS, were created in 1936 by the International Chamber of Commerce (ICC) in order to harmonize and unify the world trade.
The last major update took place in 2000. Since then, minor update occured in 2010 to fit better with the current business practices. Incoterms® added to the sales contract act as "international language" in order to reduce the possible interpretations as to the responsibility of each party involved. Incoterms® define the responsibilities of buyers and sellers concerning the delivery of goods under sales contracts. Incoterms® 2010 take into account the latest developments in commercial practice, updates and includes some of the old rules.
The new classification system divides the 11 Incoterms® into two distinct groups: