Im negotiating to sell goods to a customer in France and in the contract they e asking me to deliver them by reference to something called “Incoterms 2000” – what are they and how do they work?
A. Incoterms are a set of agreed rules which set out the delivery terms for goods which are being traded internationally. They allow the buyer and seller to agree responsibilities for the carriage of the goods, customs clearance and division of costs and risks. They avoid the possibility of misunderstandings and disputes that can arise because of differing trading practices in the respective countries. Incoterms were first published by the International Chamber of Commerce in 1936 and the latest version was agreed in 2000. There are thirteen Incoterms which cover the range of responsibilities from minimum to maximum for both buyer and seller (http://www.iccuk.net (Link to an external site – Disclaimer )). For further information see SITPRO’s Briefings Incoterms – A General Guide and Incoterms – An Action Plan and Checklist.
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