Incoterms

Sending goods from one country to another, as part of a commercial transaction, can be risky business. If they are lost or damaged, or if delivery does not take place for some other reason, the climate of confidence between parties may degenerate to the point where a lawsuit is brought. However, above all, sellers and buyers in international contracts want their deals to be successfully completed. If, when drawing up their contract, buyer and seller specifically refer to one of the ICC Incoterms, they can be sure of defining their respective responsibilities, simply and safely. In so doing they eliminate any possibility of misunderstanding and subsequent dispute. Incoterms have been revised to take account of changes in transportation techniques ­ certain terms have been consolidated and rearranged ­ and to render from them fully compatible with new developments in electronic data interchange (EDI). They are presented in a new format which allows seller and buyer to follow a step-by-step process of determining their respective obligations.