Surely the majority of all foreign trade contracts mention Incoterms, and there will be questions from "newcomers": "So what is it?", "Is it regularly updated with the rapid progress of International Maritime and Trade? “Is it really necessary for Foreign Trade Contracts?”, …. To understand more about Incoterms, let's learn more deeply with King Elong.
✍️ "Go back and forth, go forward and back", we still have to understand in general what Incoterm is, right? So what are you waiting for?
- Incoterms which are also known as International Commercial Terms, were published by the International Chamber of Commerce (ICC) for the first time in 1936.
- Incoterms are commercial rules that are widely recognized and used around the world.
- What do Incoterms regulate? Incoterms stipulate rules related to prices and responsibilities of parties (including seller and buyer) in international commercial activities.
✍️ Are you regularly updated with the rapid development of International Maritime and Trade?
Of course. To meet and help International Trade and Shipping develop globally, up to now Incoterm has been amended and supplemented 8 times in 1953, 1967, and 1974 (we refer to the website directly from ICC - Currently, in Vietnam, the year of revision is 1976, we will leave the link for your reference), 1980, 1990, 2000, 2010, 2020.
✍️ Regarding the question of whether Incoterms in Foreign Trade Contract is really necessary, we will not confirm with you "yes" or "no". It lies in the agreement and desire between the Buyer and the Seller. We just show what Incoterms would look like if they appeared in international trade activities.
Incoterms in Sales Contracts define the respective obligations, costs, and risks involved in the transportation of goods from seller to buyer, but they do not themselves enter into contracts, determining the price. Currency, or credit terms, govern the law of contract or determine the place of transfer of goods.
‼️ An extremely important note we need to know is that: "Incoterms are commercial customs, not laws, so the rules set forth are not mandatory."
“If you say so, will Incoterm be accepted globally?” Incoterms rules are accepted by governments, regulatory bodies, and practitioners worldwide to explain the most commonly used terms in international trade. They aim to reduce or eliminate uncertainties arising from different interpretations of the rules in different countries. Therefore, they are frequently included in sales contracts all over the world.
