INCOTERMS Rules

Considering the complexity of foreign trade transactions, a special chapter must always be taken into account by those working in the field: the Incoterms – International Commercial Terms rules. The Incoterms define the responsibilities over costs and risks of the importer and exporter. With only three letters (eg. : FOB, CIF, CFR) we can identify since the way of transport that must be used, the payments of the involved freights, the customs clearance and also the risks over the goods. With the revision of the terms in 2010 by the ICC – International Chamber of Commerce, we now have 11 terms that define the responsibilities for each part of a business transaction. It is essential that a meticulous analysis of these terms is carried out so both, the importer and the exporter, are completely aware about the costs and risks at delivery of the traded products, and do not become aware of them only after there is some litigation between the parties.