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Incoterms 2010 guide Incoterms Guide ? Incoterms ? has become a stock term in the international freight world In fact it is a word that is copyrighted by the International Chamber of Commerce ICC Following some years of discussion and drafting within the

Incoterms Guide ? Incoterms ? has become a stock term in the international freight world In fact it is a word that is copyrighted by the International Chamber of Commerce ICC Following some years of discussion and drafting within the ICC they issued the ?rst International Commercial Terms Inco terms in There have been revisions since then up to the latest ?? Incoterms What is meant by Incoterms is a set of rules governing the distinct types of transportation around the World It codi ?es what is meant by each of the currently identi ?ed and generally accepted types of freight transaction that can be used between sender and recipient It helps them to understand who owns the goods at each stage who is responsible in each case for the actual task of shipping who pays for the various cost elements and who bears the associated risks i e who pays in the event of damage or loss at a given point The United Nations Commission on International Trade Law UNICTRAL recognises these terms as being the global standard for transportation and they are available in languages through ICC It should be noted that the parties to a shipping transaction may agree between themselves to use a previous version most likely the immediate predecessor Incoterms The vast majority of trade however is being done using Incoterms What is the ICC Based in Paris ICC was founded in In the chaos that followed WW a group of industrialists and ?nanciers were determined to try to bring some order into world trade and to establish some rules and agreements that would make it easier to do business across borders and foster open trading Its member companies now come from over countries ICC ? s biggest achievements include a code of documentary credits practice for banks a standard of advertising practice and of course Incoterms Incoterms This latest version was launched in September but actually came into being on st January This sometimes leads to confusion with people referring to Incoterms and you may hear references to Incoterms or Incoterms They are not however updated annually and the correct reference is currently ? Incoterms ? As we shall see the Incoterms are described by -letter acronyms that aim to make them well-known and understood anywhere regardless of language This latest edition contains terms The ?rst are applied to any form of transportation the ?nal are applicable only to sea or waterway freight It is important to understand the concept of ? delivery ? as it is understood in the freight industry It does not always mean the physical arrival of the goods at their destination It actually means the point at which the seller completes his contractual obligation so in the case of Ex Works that is when the buyer loads a lorry with the goods at the seller ? s plant It may also help to note the signi ?cance of the ?rst letter in the terms C terms require the seller