Incoterms Use for Shipping Terms
INCOTERMS USE FOR SHIPPING TERMS
Incoterms rules are international trade terms promulgated by the International Chamber of Commerce (ICC). Though used primarily in international trade, they are seeing increasing use in domestic trade. When used, they should specify the specific shipping term, the location, Incoterms, and the edition. An example is “DAT Pier 82 Port of Philadelphia Incoterms® 2010.” Incoterms rules specify the point at which risk of loss occurs, but not, strictly speaking, where title changes. In addition, they specify which party is responsible for freight (or carriage) charges, but not payment terms for the goods themselves.
The ICC prefers that “Incoterms” be used as an adjective, not a noun, in prose. The word itself is trademarked and the rules are copyrighted, so at least the last edition, Incoterms® 2010, should include the trademark. The U.S. national council of the ICC is the U.S. Council for International Business (USCIB). The leading U.S. authority is Frank Reynolds, who served on the eight-member committee of the ICC which drafted the Incoterms® 2010 rules.
New rules have been published every ten years, and the second latest, Incoterms 2000, is still in widespread use. The rules are brought more up-to-date in their application, and sometimes, old terms are deleted and new terms are added. There has been a tendency to incorporate container shipment provisions, and to place responsibility for export specifics more on the seller and import specifics more on the buyer. The edition of the rules should always be specified, such as “FOB Terminal 86 Port of Seattle Incoterms 2000.” The named place (“delivery” under Incoterms rules) is where risk of loss changes, and usually, but not always, where responsibility for carriage charges changes.
Incoterms rules are not law and are incorporated into the sales contract by explicit reference to them. The sales contract includes additional specifics of the contract, and may
Incoterms rules are international trade terms promulgated by the International Chamber of Commerce (ICC). Though used primarily in international trade, they are seeing increasing use in domestic trade. When used, they should specify the specific shipping term, the location, Incoterms, and the edition. An example is “DAT Pier 82 Port of Philadelphia Incoterms® 2010.” Incoterms rules specify the point at which risk of loss occurs, but not, strictly speaking, where title changes. In addition, they specify which party is responsible for freight (or carriage) charges, but not payment terms for the goods themselves.
The ICC prefers that “Incoterms” be used as an adjective, not a noun, in prose. The word itself is trademarked and the rules are copyrighted, so at least the last edition, Incoterms® 2010, should include the trademark. The U.S. national council of the ICC is the U.S. Council for International Business (USCIB). The leading U.S. authority is Frank Reynolds, who served on the eight-member committee of the ICC which drafted the Incoterms® 2010 rules.
New rules have been published every ten years, and the second latest, Incoterms 2000, is still in widespread use. The rules are brought more up-to-date in their application, and sometimes, old terms are deleted and new terms are added. There has been a tendency to incorporate container shipment provisions, and to place responsibility for export specifics more on the seller and import specifics more on the buyer. The edition of the rules should always be specified, such as “FOB Terminal 86 Port of Seattle Incoterms 2000.” The named place (“delivery” under Incoterms rules) is where risk of loss changes, and usually, but not always, where responsibility for carriage charges changes.
Incoterms rules are not law and are incorporated into the sales contract by explicit reference to them. The sales contract includes additional specifics of the contract, and may