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Incoterms, or International Commercial Terms, are a set of predefined international rules that outline the responsibilities of buyers and sellers in international transactions. The correct division of Incoterms is into categories that address rules specifically for sea and inland waterway transport, and those which are applicable for any mode of transport.

This structure is significant because the transportation methods dictate different responsibilities regarding risk, insurance, and cost between buyers and sellers. The Incoterms that pertain to sea and inland waterways focus on terms like FOB (Free on Board), while those that apply to any transport mode include terms like EXW (Ex Works) and DDP (Delivered Duty Paid).

Understanding this division helps businesses select the appropriate terms based on their specific mode of transport and the nature of their trade agreements, facilitating clearer communication and reducing misunderstandings in international shipping operations.