International Commercial Terms...

International Commercial Terms Incoterms®  is an abbreviation for the international commercial terms and is the registered trademark name given to these terms by International Chamber of Commerce (ICC). They are a  series of three-letter trade terms related to common contractual sales practices. The Incoterms® rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods. They are published by the ICC and are widely used in international commercial transactions. Incoterms® are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contracts for domestic and international trade. They apportion transportation costs and responsibilities associated with the delivery of goods between buyers (importers) and sellers (exporters) and reflect modern day transportation practices. Incoterms® significantly reduce misunderstandings among trading parties and thereby minimize trade disputes and litigation. The Incoterms® was first conceived by ICC in 1921, and brought to fruition with the first Incoterms® rules in 1936. The Incoterms® were created with the purpose of providing a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. A Trade Terms Committee with the assistance of the ICC National Committees developed the first six rules in 1923 namely FOB, FAS, FOT, FOR, Free Delivered CIF and C&F, which were the precursor of what would later be known as the Incoterms® rules. This set in motion a long and vibrant history of Incoterms® rules. As commercial practices, types of goods and transports, and international laws evolve, the Incoterms ® rules need to be regularly updated by experienced international experts. Since the issue of first set of rules in 1936, ICC expert lawyers and trade practitioners have updated them six times to keep pace...