國際貿易術語解釋通則(英文),
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What is Incoterms and Understanding International Trade
Introduction
International trade has been a vital part of the global economy for centuries. The success of international trade depends on how well the parties involved understand the terms and conditions of the trade. There are certain commonly used terms in the international trade process that parties must be aware of to ensure seamless trade transactions and avoid disputes. One such term is "Incoterms," which stands for International Commercial Terms.
What are Incoterms?
Incoterms are a set of standardized trade terms used for international trade transactions. International Chamber of Commerce (ICC) developed Incoterms in 1936, and it has since been updated and released periodically. The latest version of Incoterms was released in 2020, comprising 11 standardized terms.
Why are Incoterms Important?
Incoterms help parties involved in international trade to understand the sales contract"s critical terms, including delivery, risk, and cost allocation. Incoterms provide standardized definitions for specific commercial transactions, reducing misunderstandings by parties and preventing costly disputes.
The parties involved in Incoterms
Incoterms define the responsibilities and obligations of three parties involved in any international trade transaction. These are:
1. Seller
2. Buyer
3. Carrier (shipper, freight forwarder)
The 11 standardized Incoterms
The latest version of Incoterms (2020) has 11 standardized terms, four of which can be used for any means of transportation, while seven others can only be used for sea and inland waterway transport.
1. EXW (Ex Works)
2. FCA (Free Carrier)
3. CPT (Carriage Paid To)
4. CIP (Carriage and Insurance Paid)
5. DAP (Delivered at Place)
6. DPU (Delivered at Place Unloaded)
7. DDP (Delivered Duty Paid)
8. FAS (Free Alongside Ship)
9. FOB (Free on Board)
10. CFR (Cost and Freight)
11. CIF (Cost, Insurance, and Freight)
Conclusion
Understanding Incoterms is crucial to the success of any international trade transaction. It not only reduces the risk of disputes but also helps parties involved in international trade to identify the responsibilities and obligations they need to fulfill to complete the transaction.
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