Incoterms

Incoterms Regulations

Incoterms regulations, first released by the International Chamber of Commerce in 1936 to coordinate the practice of cross-border cargo shipments. Moreover, some terms (such as FOB and CIF) are quite old, and were used in England in the late XVIII century. Incoterms® are adopted by States and businesses globally and are under the TM of the ICC. As such, they play an important role in international law (in particular, in the maritime law) and serve as the basis for determining the liability of commercial parties. To date Incoterms necessarily used in procurement, sales and other international trade transactions.

Each condition has a three-letter designation, that conventionally describes, who of two pays each component of the charges (shipping, customs duties, insurance). Typically, for better comprehension, the terms are arranged in ascending order of seller expenditure (first condition FCA - the seller pays nothing, the last condition DPP - the seller undertakes for all the transportation together with import customs charges, in effect, bringing the goods to the buyer's door and relieving him from all organizational actions).