Basic terms of delivery of goods

Today, the business is not only the leading economic structure of the world economy, but is a great choice in the placement of products in global markets. To address the difficulties, disputes and conflicts arising in the process of international sales, and has developed basic terms of delivery, exchange and sale of products.

What are the basic terms

Basic conditions of supply of goods – recognized by all the international trade rules that define the nature and content of commercial transactions. The basis (the basis) of such contracts is the pricing of goods, which includes the cost of transportation costs for the delivery of products. With the increase in international sales, contractual documents which had certain recognized standards of drafting and did not contain mutually beneficial terms of delivery and acceptance of goods, were sources of increasing costly disputes between the member countries of the bargain. The trading concept was interpreted by the buyer and seller in different ways.

To resolve recurring disputes, the International chamber of Commerce in 1936, was designed “International rules”, explaining the value of trade terms. In this document, over time, made various changes and amendments. The currently valid edition of 2000, entitled "Incoterms" and reflects current practice in international trade.

Causes of revision "Incoterms"

What caused the necessity of additions and amendments in the terminology of trade between States? Have you changed from the basic terms of goods delivery?

One of the reasons is rapid growth over a short period of implementation in various spheres of activity (including trade) of different electronic devices for communication and processing and transmission of documentation. The use of Fax, telex, the Internet has greatly expedited the processing and forwarding of the accounts, forwarding documents, invoices, etc.

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And there have also been changes in the methods of transporting goods. As a result of application rationalization innovations, such types of loading, horizontal combined unloading and loading, transportation using containers.

In the new edition of "Incoterms" has been clarified the controversial terms, and easier understanding and reading of those that were contained in the earlier document. Has been a completely different method of presentation. All the explanations and conditions are in the nature of recommendations.

Specification of the term “basic conditions of supply”. Detailed consideration

In the new presentation of 2000 basic conditions of supply of goods when concluding a foreign trade contract of purchase and sale determine more specifically the moment of transition of the products to the buyer. It is now possible on both sides the most accurate view of the risks of accidental damage or destruction of cargo.

Specifies the obligations of both parties. Separately stated as obligations of the seller and the buyer. Specified two meanings of the term “supply”. In the first case, reflects the obligation of the seller to its completion, and in the second the duties of a buyer before its adoption.

Now the buyer and the seller at the conclusion of the contract necessarily specify whether they apply basic terms of delivery are fully or with some reservations. Priority selection in the determination of the conditions rests with the buyer.

A sound approach to the law of priority action determines the entire course of the international trade transaction and its benefits, which will be complete if we can negotiate so that the execution of documents and delivery of cargo to foreign countries paid for and organize foreign company.