International Chamber of Commerce - The World Business Organization (ICC) declared release of new edition of Rules of use of national and international trading terms Incoterms 2010. New rules come into force on January, 1st, 2011.
Rules Incoterms (from «International Commercial Terms») have been presented for the first time by ICC in 1936, having defined responsibility of the seller and the buyer by delivery of the goods to help participants of international trade to avoid divergences. Representing absolutely new concept for the sphere regulated by local rules of law, Incoterms became sensation in the international business community as they became the first real attempt to bring legal definiteness in trading agreements, simplifying process of drawing up of the international contracts.
"Before the ICC has developed rules Incoterms, some trade terms are subject to different interpretations in different countries, which often becomes the cause of litigation"- chairman ICC of Radzhat Gupta has noted. «Today Incoterms for use of such terms as ex factory (EXW), ex a board (FOB), cost and the freight (CFR) and cost, insurance and the freight (CIF) are a part of recognized legal norms which define obligations of buyers and sellers at realization of trading operations all over the world».
The next revision of the Rules was conducted for the purpose of maintenance of more exact and clear formulation of terms Incoterms that displays modern trading practice.
Rules Incoterms 2010 reflect modern trends in international trade which have developed from the moment of release of last edition of Rules in 2000. Among such tendencies – a safety issue of the transportations, which steels especially actual after events on September, 11th 2001, and also expansions of use of electronic means at the conclusion of commercial agreements.
The total of terms is reduced with 13 to 11. Also in Rules there were 2 new terms: DAT (deliveries to the terminal) and DAP (deliveries in point). Besides, the new version contains a small management to each term to help users of Rules Incoterms 2010 to choose the necessary term.
Information source: InvestGazeta
