Incoterms are terms used to define delivery and collection terms in international trade. These terms are defined and recognized by the International Chamber of Commerce and are used to ensure greater cooperation and organization in the definitions of delivery and collection between the supplier and the buyer. Read more about what Incoterms is and what. It has some advantages, we will explain. Incoterms, in the process of international trade, include things such as place and time of delivery, technical and financial responsibilities, risk coverage, costs and others. The use of Incoterms helps in guaranteeing the conditions of delivery and collection between the supplier and the buyer and helps to protect the interests of both people. Also, Incoterms, as an important factor in the definitions of delivery and collection, are very important in the development and implementation of effective strategies in international trade.
Terms defined in Incoterms
In Incoterms, some of the defined terms include: EXW (Ex Works): means delivery of the product at the place of manufacture, excluding transportation costs and without risk coverage. FCA (Free Carrier): means delivery of the product to the carrier, at the specified location and without transportation costs, but with risk coverage up to the place of delivery. CPT (Carriage Paid To): means delivery of the product to the carrier, at the specified location, with transportation costs and risk coverage to the place of delivery. CIP (Carriage and Insurance Paid to): means delivery of the product to the carrier, at the specified location, with transportation and insurance costs, to the place of delivery. DAP (Delivered at Place): means delivery of the product at the specified place, with transportation costs, but without risk coverage. DDP (Delivered Duty Paid): means delivery of the product at the specified location, with transportation costs and risk coverage.
What are the rules of Incoterms?
Incoterms rules include the following: Definition of terms of delivery and payment: Incoterms formally define terms of product delivery and payment. Definition of transportation costs: Incoterms include the definition of product transportation cost estimates. Definition of risk responsibility: Incoterms include the definition of responsibility for risks related to the product during transportation. Definition of tax laws and insurance organizations: Incoterms include definition of tax laws and insurance organizations related to the product. Definition of terms of exchange and return: Incoterms include the definition of terms of exchange and return of the product in case of problems. It is summarized that the rules of Incoterms include the definition of terms of sale, delivery, payment, risk, tax
What are the benefits of Incoterms rules?
The rules of Incoterms have the following four advantages for the parties to the transaction: Confidence: Due to the definition of the terms of transactions using Incoterms, the parties to the transaction reach the obligation with ease as more certainty. Suitability of conditions: Incoterms allows the parties to the transaction to define their own favorable conditions for the transaction, so they can follow up their transactions appropriately according to their needs and abilities. Validity: According to the definition of the terms of the transaction in Incoterms, it is considered as a valid and highly valid document that is used in judicial cases. Improving communication: Incoterms improves communication between transaction parties by defining transaction terms and standards and makes it possible to provide expertise to solve problems and…
What is the difference between Incoterms 2010 and Incoterms 2020?
Incoterms 2010 and Incoterms 2020 are two different versions of Incoterms that have a number of important differences. Main differences: Data structure: In Incoterms 2020, the data structure has been improved and prepared with all new issues, according to the ever-growing needs of the market. Transaction speed: In Incoterms 2020, the transaction speed has been improved and is more fast compared to Incoterms 2010. Security: Incoterms 2020, due to the need to improve the security of transactions, has improved documents to maintain transaction security. Different applications: In Incoterms 2020, in collaboration with different industries, different types of Incoterms applications have been improved and defined in a sustainable way.
