Incoterms are standard trade definitions commonly used in international sales contract and they determine the obligations and risks of both buyer and seller. The Incoterms selected for every transaction will define the obligations of the parties.
Being INCOTERMS (International Commercial Terms) a word of English origin, it was first published in 1936 by the International Chamber of Commerce. It was meant to limit term interpretations of the different countries when they negotiated transactional conditions.
Since then, Incoterms have been revised regularly, being INCOTERMS 2000 the last version. In comparison with the version of 1990, it has significant changes in the following areas:
» Clearance Obligations under FAS and DEQ
» Loading and Unloading Obligations under FCA
This publication is part of the different actions performed by both the ‘Subsecretaría de Comercio e Integración’ and the ‘Fundación EXPORTAR’ mainly aimed at supporting the companies´ efforts to trade efficiently within the international market.
So, an adequate use of INCOTERMS is essential to avoid misunderstandings in relation to sales terms or conditions which, otherwise, may result in unexpected costs such as transportation, insurance, etc.