why are incoterms used 
incoterms are used to clarify business terms in international trade the many benefits of incoterms outweigh the negatives for most transactions which is why many trade agreements are facilitated using incoterms there are still preferences between parties and the terms themselves must be negotiated before an agreement is finalized the bottom lineincoterms are helpful terms used to facilitate international trade they are separated by modes of transport between any mode and those specifically involving water transport the terms categorize responsibility between the buyer and seller but there are some aspects of trade that the terms do not cover such as the goods being sold or future liability responsibilities for this reason incoterms should be used to help clarify agreements but should not be the entirety of the agreement 