7/23/2019 Chapter 5 - International Chamber Pf Commerce

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In international trade, there are three types of contracts of transport for the delivery goods:i.From the exporter’s premise to a transport company within the exporting country.

ii.From the transport company’s premise in the exporting country to a named destination(eg: port, airport) in the importing country.

iii.From the port in the importing country to the importer’s premise.There are various aspects that need to e confirmed efore the eventual shipping is ta!en in

place. "ll parties have to decide on a specific incoterms so that they will e fully aware of their responsiilities and duties as these are laid down clearly y I##.

$uring each stage of delivery, it is important to estalish a clear%cut point as

to show where the exporter’s responsiility end and where the importer’s

responsiility egins.

Incoterms is drafted y the I## to provide standardi&ation of terms across countries in

international trading.

 

Incoterms contain standard trade definitions most fre'uently as!ed etween exporters and

importers in a trade sales contract.

 

Incoterms are not incorporated into national or international law ut they can ind oth

exporter and importer into a trade agreement.

 

$uring an international trade, the mutual agreement etween trade parties will ind them to

the I##’s terms and conditions.

$ifferent countries have different interpretation of international trade contract. This could e

solved y creating an internationally agreed terms. 

Incoterm rules highlight only on which party to the sale contract has the oligation to ma!ecarriage or insurance agreements, e.g. which cost each part is responsile for.

 Incoterms do not include the following:

i.$etermine the price of goods

ii.The method of paymentiii.To deal with the ownership of the goods.