Incoterms

Incoterms

International Commercial Terms

The Incoterms are a collection of voluntary rules clarifying how to interpret standard terms in commercial contracts covering international trade transactions. Schütte & Bünemann has committed to complying with the Incoterms rules.
These international terms were mainly designed to regulate how goods are delivered. One of the things they govern is which transport costs the seller bears and which part the buyer has to cover. They also determine who carries the financial risk in case of the goods beings damaged or lost.
The Incoterms do not demand that cargo insurance be taken out, except in the terms CIF and CIP, which determine the need for additional cargo insurance.
While the Incoterms are not legally binding, they become part of the contractual agreements if incorporated in the contract by seller and buyer. Any specific agreements in individual contracts will always supersede the Incoterms.
The International Chamber of Commerce (ICC) was the one to develop and design the Incoterms in 1936. Since then there have been several revisions. The Incoterms 2010 are the current version and the seventh revision of the original set of terms. They contain 11 instead of the 13 terms included in the Incoterms 2000. Of these terms, 7 are multimodal and 4 only apply for ocean or inland waterway transport.
In spite of there being more recent Incoterms versions, you can still enter into contracts using Incoterms definitions from older versions, such as “EXW Hamburg Incoterms 1980”. This can be the case for contracts between long-standing business partners who have established a tried and trusted way of handling their imports and exports.

Feel free to contact us for more information or find out more at the International Chamber of Commerce’s website.

incoterms


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