Incoterms in Plain English (No Jargon)

[PLACEHOLDER BODY] Incoterms just answer one question: at what point does responsibility for the goods pass from seller to buyer?

EXW (Ex Works) — the buyer takes responsibility as soon as goods leave the seller's premises. FOB (Free on Board) — the seller's responsibility ends once goods are loaded onto the shipping vessel. CIF (Cost, Insurance, Freight) — the seller covers cost, insurance, and freight to the destination port.

Replace this with your own explanation style and a real (anonymised) example of an Incoterm mattering in an actual conversation.