Incoterms 2000 – Rules at the core of world trade

30 04 2010

What are Incoterms:

  • Abbreviation of International Commerce Terms (Incoterms)
  • Published by International Chamber of Commerce since 1936
  • Define key elemnts of international contracts of sale
  • Reflect the parties agreement to divide costs and risks between parties
  • Provide the buyer and seller instructions regarding the carriage and delivery of goods
  • Can be used for purchasing parts both within the EU and outside the EU
  • Agreement by both parties to use a particular Incoterm does have implications in other parts of the contract (e.g. payments and the use of documentary credits, duty payments in the country of importation)

Application:

  • Any mode of transport(EXW, FCA, CPT, CIP, DAF, DDU, DDP)

-> Necessary due to the fact that international transportation is a risky business (standards got defined to handle different cases [who is taking the risk, who is the owner]). These standards defining different cases are called Incoterms, set some ground rules for international transactions and get revised every 10 years.

Usefull Links:
International Chamber of Commerce

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