Incoterms®2010 are international trade rules widely used in international trade. They regulate the distribution of costs, duties and risks related to the delivery of cargo between the seller and the buyer. Recognized all over the world, these principles provide for order across hugely different systems of economic law in each country.
Incoterms®2010 are international trade rules widely used in international trade. They regulate the distribution of costs, duties and risks related to the delivery of cargo between the seller and the buyer. Recognized all over the world, these principles provide for order across hugely different systems of economic law in each country.
The most commonly used Incoterms have been developed by the International Chamber of Commerce. As of January 1, 2011 a new version of the Incoterms has been in place: Incoterms® 2010.
If you are about to sign a contract, you should carefully balance all risks and advantages when defining delivery terms.
The matters regulated by Incoterms® 2010 between the seller and the buyer are as follows:
Costs;
- Freight;
- Carriage;
- Customs clearance;
- Insurance;
- Mutual assistance;
- The risk of loss or damage;
- Obligations;
- Documents;
- Formalities;
- Delivery.
Incoterms®2010 do not regulate:
- Transition of the ownership title;
- Relations between the freight forwarder and the carrier;
- Relations with the insurer;
- Terms of payment;
- The effects of the breach of contract;
- Relations with banks;
- Law applicable to the contract and jurisdiction.