When commercial traders enter into a contract for the purchase and sale of goods they are free to negotiate specific terms of their contract.
These terms include the price, quantity, and characteristics of thegoods. Every international contract will also contain what is referred to as an Incoterm (international commercial term).
 The Incoterm selected by the parties to the transaction willdetermine which party pays the cost of each segment of transport, whois responsible for loading & unloading of goods, and who bearsthe risk of loss at any given point during a given international shipment.
Incoterms also influence Customs valuation basis of importedmerchandise. Incoterms are overseen and administered by theInternational Chamber of Commerce in Paris and are adhered to by the major trading nations of the world.

The first version was introduced in 1936 and the present dates from january 2000 which is called INCOTERMS 2000

There are currently 13 Incoterms in use, and are organized in 4 groups (Group E, F, C, D).

Group E – Departure
EXW – Ex Works (named place)
The seller makes the goods available at his premises. The buyer is responsible for all charges.
This term may be the easiest to administer, however may not be in theseller's best interests. There is no control over the final destinationof the goods. It may be possible for the seller to negotiate betterfreight rates than the buyer. A vehicle arriving to take delivery of the seller's goods under EXW may not be suitable for carriage.

Group F – Main carriage unpaid
FCA – Free Carrier (named place)
The seller hands over the goods, cleared for export, into the custodyof the first carrier (named by the buyer) at the named place. This termis suitable for all modes of transport, including carriage by air, rail, road, and containerised / multi-modal transport.
FAS – Free Alongside Ship (named loading port)
The seller must place the goods alongside the ship at the named port.The seller must clear the goods for export; this changed in the 2000 version of the Incoterms. Suitable for maritime transport only.
FOB – Free On Board (named loading port)
The classic maritime trade term. The seller must load the goods onboard the ship nominated by the buyer, cost and risk being divided atship's rail. The seller must clear the goods for export. Maritime transport only.

Group C – Main carriage paid
CFR – Cost and Freight (named destination port)
Seller must pay the costs and freight to bring the goods to the port ofdestination. However, risk is transferred to the buyer once the goods have crossed the ship's rail. Maritime transport only.
CIF – Cost, Insurance and Freight (named destination port)
Exactly the same as CFR except that the seller must in addition procure and pay for insurance for the buyer. Maritime transport only.
CPT – Carriage Paid To (named place of destination)
The general/containerised/multimodal equivalent of CFR. The seller paysfor carriage to the named point of destination, but risk passes when the goods are handed over to the first carrier.
CIP – Carriage and Insurance Paid (To) (named place of destination)
 The containerised transport/multimodal equivalent of CIF.Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.

Group D – Arrival
DAF – Delivered At Frontier (named place)
 This term can be used when the goods are transported by railand road. The seller pays for transportation to the named place ofdelivery at the frontier. The buyer arranges for customs clearance andpays for transportation from the frontier to his factory. The passing of risk occurs at the frontier.
DES – Delivered Ex Ship (named port)
 Where goods are delivered ex ship, the passing of risk doesnot occur until the ship has arrived at the named port of destinationand the goods made available for unloading to the buyer. The sellerpays the same freight and insurance costs as he would under a CIFarrangement. Unlike CFR and CIF terms, the seller has agreed to bearnot just cost, but also Risk and Title up to the arrival of the vesselat the named port. Costs for unloading the goods and any duties, taxes,etc… are for the Buyer. A commonly used term in shippingbulk commodities, such as coal, grain, dry chemicals - - - and where the seller either owns or has chartered, their own vessel.
DEQ – Delivered Ex Quay (named port)
 This is similar to DES, but the passing of risk does not occur until the goods have been unloaded at the port of destination.
DDU – Delivered Duty Unpaid (named destination place)
 This term means that the seller delivers the goods to thebuyer to the named place of destination in the contract of sale. Thegoods are not cleared for import or unloaded from any form of transportat the place of destination. The buyer is responsible for the costs andrisks for the unloading, duty and any subsequent delivery beyond theplace of destination. However, if the buyer wishes the seller to bearcost and risks associated with the import clearance, duty, unloadingand subsequent delivery beyond the place of destination, then this all needs to be explicitly agreed upon in the contract of sale.
DDP – Delivered Duty Paid (named destination place)
 This term means that the seller pays for all transportationcosts and bears all risk until the goods have been delivered and paysthe duty. Also used interchangeably with the term "Free Domicile". Themost comprehensive term for the buyer.

More detailed information is available here