Incoterms 2000
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The incoterms are a universally recognized set of definitions of international trade terms such as FOB, CFR and CIF, developed by the International Chamber of Commerce (ICC) in Paris, France. The purpose of Incoterms is to provide a set of international rules for the interpreation of the most commonly used trade terms in foreign trade. Thus the uncertanties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree.
Frequently parties to a contract are unaware of the different trading practices in their respective countries. This can give rise to misunderstandings, disputes and litigation, with all the waste of time and money that this entails. In order to remedy these problems the ICC first published in 1936 a set of international rules for the interpretation of trade terms. These rules were known as "Incoterms 1936". Amendments and additions were later made in 1953, 1967, 1976, 1980, 1990, 2000 and again in 2010 in order to bring the rules in line with current international trade practices.
There are 13 main terms and several secondary terms. These are not to be confused with general Trade Terms - details of these can be found by clicking here.
Incoterms denote the points at which shipper, carrier and consignee risks and responsibilities begin and end. It is an invaluable and cost saving tool.
Many importers and exporters worldwide are accustomed to and may still use the Incoterms 1980, the predecessor of Incoterms 1990, 2000 and 2010.
Under Incoterms 2010, there are four groups that are shown as below.
Category C
The "C" terms mean that the seller arranges for transportation to arrival port or airport.
Category D
The "D" terms mean that the seller bears all the necessary expenses and risks involved in transporting the goods to the place of destination.
Category E
The "E" term means that the seller's obligations are limited to placing the goods at the disposal of the buyer at the seller's premises or another< named> place.
Category F
The "F" terms mean that the seller's obligations are limited to the delivery of the goods to the carrier.
