What does INCOTERM mean?
The purpose of Incoterms is to: Provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. Thus the uncertainties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree. Frequently parties to a contract are unaware of the different trading practices in their respective countries. This can give rise to misunderstandings, disputes and litigation with all the waste of time and money that this entails. Amendments and additions were made 1990 in order to bring the rules in line with current international trade practices. An important feature of Incoterms is that they have provided for future developments in Electronic Data Interchange (EDI) in relation to transport documents. For more information, please download INCOTERM.
