Incoterms, maintained by the ICC, are the shorthand of global sourcing. They define exactly where seller responsibility ends and buyer responsibility begins. A quote in EXW versus DDP can differ by 15–25% on total landed cost — same supplier, same product, different Incoterm.
Lexicon entry
Incoterms
Standardized three-letter trade terms (EXW, FOB, DDP…) defining who pays for shipping, insurance, customs, and risk transfer in international trade.