Incoterms

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Incoterms

Trade terms used worldwide to specify seller and buyer obligations in shipments against international sales contracts. These terms are adopted by the International Chamber of Commerce (ICC) for international movement of merchandise. Since they in themselves are not law, they must be specified if desired in quotations, sales contracts, purchase orders and commercial invoices.

Incoterms

A series of standardized contracts for international commerce. Incoterms specify the rights and obligations of the buyer and the seller and what each must contribute to ensure that the good is delivered in good order. The most important aspects of incoterms are at what point risk transfers from the seller to the buyer and which is responsible to pay for transportation. Incoterms are agreed upon between the buyer and the seller. They are often expressed as an abbreviation. Common examples include EXW and FOB. See also: International Chamber of Commerce.

References in periodicals archive ?

For more information about Incoterms, attend FCIB's three-day webinar, led by Pedersen, on February 15-17, 2011.

New decade, new upgrade: Incoterms 2010 picks up where Incoterms 2000 left off

Credit Managers, in particular, should be careful to counsel their organizations not to accept LCs in a format calling for the Ocean Bill of Lading as evidentiary documentation with Less than a "C" Incoterm. Since most banks have a great deal of trouble in issuing LCs without calling for an OBL (they are sometimes constrained by their charters not to do so), it is a good practice to insist that the Incoterm governing the taking in charge of the goods under the transaction should minimally be CIF, which would require that the engaging party, for the purposes of creation of this essential piece of evidentiary documentation, be the beneficiary or the beneficiary's designated agent.

Exporters must ensure coordination of Incoterms and documentary requirements for LC payment

You may also want to purchase Incoterms For Americans (Fully Revised For Incoterms 2000) ISBN: 1-886457-06-09 - from International Projects, Inc., P.O.

Incoterms 2000

The first set of Incoterms rules was published by ICC in 1936.

ICC set to launch Incoterms 2020 to guide global traders

Similar to FOB shipments, insurance, under INCOTERMS definition would attach once the goods "pass the ship's rail".

International Commercial Terms (INCOTERMS)

While the revised set of rules on INCOTERMS in all international trade transactions has taken effect globally seven years ago, many exporters and importers, traders, bankers, insurers, freight forwarders, carriers and the people handling such transactions, namely business owners, treasurers, CFOs, procurement officers, trade negotiators and many lawyers are still unaware of these changes.

How to master the use of trade terminologies

Many companies use Incoterms in their sales contracts.

Indirect Taxes, Canada: Impact of Delivery Terms: Effect is significant on application of GST/HST on imports, exports, and sales

One solution called for a re-examination of the Incoterms negotiated with the brands.

Why retail supply chain transformations fail--and how to get it right

The programme addresses related topics such as methods of payment, an in-depth look at the sales contract, fundamental knowledge of foreign exchange, basic understanding of Incoterms 2010 and the understanding of an export consortium.

Training programme launched

The course is broken up into five one-day modules covering an introduction to exporting, export documentation and INCOTERMS, methods of payment, letters of credit and import procedures.

Business course to deliver export skills

* INCOTERMS for Export Marketing covers the new version of INCOTERMS 2010 in clear and easy understanding wordings.

International Marketing, text and cases, Justin Paul and Ramneek Kapoor, Tata Mc Graw Hill Education Private Ltd