Incoterms 2020 are a set of international trade terms established by the International Chamber of Commerce (ICC) to clarify the responsibilities of buyers and sellers in global transactions. These terms define who is responsible for shipping, insurance, and tariffs, helping to avoid misunderstandings and disputes. The 2020 edition includes 11 terms, such as EXW (Ex Works) and FOB (Free on Board), which specify the point at which risk and costs transfer from the seller to the buyer. Understanding these terms is essential for businesses engaged in international trade to ensure smooth operations and compliance.