As trade markets continue to expand thanks to technological developments in vehicles and logistics, distribution networks extend well beyond national frontiers. With the hurdles of distance, language and business customs to clear, allocation of responsibility between a buyer and seller of goods becomes even more crucial and this is where ‘Incoterms’ can help.
Incoterms are internationally standardized ‘trade terms’, developed by the International Chamber of Commerce (ICC), to enable exporters to quote prices which clearly allocate the costs, risks, customs and insurance responsibilities of internationally transporting goods between the buyer and the seller.
Incoterms (International Commercial Terms) were first developed in 1936 and have been subsequently revised up to the current 1990 edition. In response to developing technology and increasing world wide use of the terms, a new edition is being published by the ICC this autumn, which will come into effect on 1 January 2000.
