Which statement best describes the primary purpose of Incoterms in relation to a bill of lading?

Which statement best describes the primary purpose of Incoterms in relation to a bill of lading?

• A. The vessel and route.
• B. They determine local customs policy.
• C. They define ship ownership and registration responsibilities.
• D. They define risk transfer, cost allocation, and responsibilities for delivery.

Answer: (D)