Why Use Incoterms 1990?
When a company deals across international borders, there is always the risk that the meaning of a term or customary practice differs. What the seller understands to be a certain position may be interpreted differently by the buyer due to differences in domestic laws and business custom. Although Incoterms 1990 does not completely alleviate these types of problems they are an important step in that direction. For example, FOB in the United States is interpreted by reference to the Uniform Commercial Code which refers to the 1941 American Foreign Trade Definitions so that “FOB Vancouver” may be interpreted by the US buyer to mean that the seller is obligated to contract for carriage, and “FOB Los Angeles, ship name” may be interpreted by the US seller to mean that payment is required as soon as the goods are loaded. Under Canadian law or Incoterms 1990, a different interpretation would result. General Description and Issues Incoterms 1990 do not attempt to deal with all aspects of an int
