What are INCOTERMS in Export Business? INCOTERMS are crucial in export business as they outline key aspects of the transaction, such as: Delivery Point: They specify where the risk of loss or damage to the goods transfers from the seller to the buyer. This is important for determining when the buyer takes control and responsibility for the goods. Transportation Costs: INCOTERMS define which party is responsible for various transportation costs, such as freight charges, insurance, customs duties,