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 update took place in 2000: trade has changed so much in 10 years that the update was necessary to follow 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 include some of the old rules.
The new classification system divides the 11 Incoterms® into two distinct groups: