Incoterms

A-The Necessity

The parties of  Foreign Trade contracts were unaware of the different practices .So the misunderstanding and disputes were inevitable .

 

B – The  Purpose :

To provide a set of Int`l rules for the interpretation of the most commonly used terms in Foreign Trades .

 

C -The History :

The ICC published a set of Int`l rules in trade terms in 1936 and updated it for 6 times till INCO2000.

 

D –The Scope :

The scope of INCO is the respect of Delivery in sales contracts for tangible goods

 

E – Remarks : 

INCO is not a contract but a set of terms & Conditions relates to the sales contract

INCO concerns mainly the delivery in sales contract and may effect on the other terms as carriage ,insurance etc.

INCO involved revisions in order to adapt the terms with contemporary commercial practices(as adding FCA term near to FOB in 1980

INCO2000 is the comprehensive version considering all the last changes and clearly reflects trade practices . So it is needed in the contracts to referred to the version of INCO as 2000 .