Incoterms 2000

The word “Incoterms” is the abbreviation for “International commercial terms” and individual Incoterms are delivery clause of a bill of sale (not transport contract). The commercial terms are principal elements of international bills of sales because they determine duties of third sides forasmuch as: transport of goods from a seller to a buyer, import and export customs pursuance.

Incoterms also explicates division of costs and risks among contractors. Traders like to use abbreviations – e. g. FOB or CIF – to explain allotment of duties, costs or risks relating to the transport of goods from the seller to the buyer. There are often misunderstandings because of correct interpretation of these terms. It was necessary to formulate principles of the commercial terms interpretation on which the contractors can agree. Incoterms are foundation of these principles of the interpretation. They were issued for the first time by the International Chamber of Commerce in 1936. Their official name is the International Principles for Interpretation of Commercial Terms.