Monday 8 November 2010

INCOTERMS....

The Incoterms® rules are an internationally recognized standard and are used worldwide in international and domestic contracts for the sale of goods that were promulgated by the International Chamber of Commerce first in 1936. Since then these standards have been modified every decade. However, they are not strictly classified as law, but rather as international custom. The purpose of these trade terms are to take care of the nuances of risk between the buyer and seller.
The application of these standards is often confused by the international contracting parties. Providentially, the strict purview of their scope was referred to in R. (on the application of Teleos Plc) v The Commissioners of HM Customs and Excise, where Moses J. noted: “They [Incoterms] do not apply to the contract of carriage”, but rather relevant to contract of sale of goods.
Recently, the Incoterms 2000 has been revised and will be coming into force on 1st January 2011.The new Rules have been revised to take into account developments in international trade over the past ten years as the volume and complexity of global sales has increased, to address security issues arising in recent times and to provide for the on-going changes in electronic communication. The new Rules also recognise the growth of customs-free areas. The Incoterms 2010 has been reclassified and the rules now apply to the domestic as well as the international trade.
Details of the difference between the previous Incoterms and the latest one can be seen in <http://www.incelaw.com/documents/pdf/Strands/International-Trade/incoterms-2010.pdf>

1 comment:

  1. I have posted Incoterms 2010 as well. You can have a view on it
    http://lee-llm2010.blogspot.com/2010/11/international-trading-rules-changing.html

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