Basic terms of delivery of goods

Today, business is not only the leading structure of the economy of the world economy, but also occupies a major place in the distribution of products on world markets. To resolve various complexities, disputes and conflicts arising in the process of international sales, the basic conditions for the supply, exchange and sale of products were developed.

What are the basic conditions

The basic conditions for the supply of goods are international trade rules recognized by all, which determine the nature and content of trade transactions. The basis (basis) of such contracts is the formation of the price of the goods, which includes the cost of transportation costs for the delivery of products. With the increase in the volume of international sales, contractual documents that did not have certain generally accepted drafting standards and did not contain mutually beneficial conditions for the delivery and acceptance of goods, were sources of ever-increasing costly disputes between the countries participating in the bargain. Trade concepts were treated differently by the buyer and the seller.

In order to resolve the ever-arising disagreements, the International Chamber of Commerce in 1936 developed the "International Rules" clarifying the meaning of trade terms. With the passage of time, various changes and amendments were made to this document. At the moment, it is valid in the 2000 edition under the name "Incoterms" and reflects the current practice of international trade.

Reasons for revising Incoterms

What is the reason for the need for additions and amendments in the terminology of trade between states? Have the basic conditions for the supply of products changed from this?

One of the reasons is the rapid growth in the short period of the introduction into various fields of activity (including in trade) of various electronic devices for communication, as well as the processing and transfer of documentation. The use of faxes, telexes, and the Internet network made it possible to significantly speed up the processing and transfer of merchant accounts, transport documents, invoices, etc.

And there have also been changes in the way goods are transported. As a result of innovation innovations, such types of loading as horizontal, mixed unloading and loading, transportation using containers became available.

The new version of Incoterms clarified the controversial terms and facilitated the understanding and reading of those contained in the document earlier. An entirely different method of their presentation was applied. All explanations and conditions are of the nature of recommendations.

Specification of the term "basic terms of delivery." Detailed consideration

In the new statement of the year 2000, the basic conditions for the delivery of goods when concluding a foreign trade contract for purchase and sale determine more specifically the moment of transfer of production to the ownership of the buyer. Now it became possible on both sides to take the most accurate account of the risks of accidental damage or loss of cargo.

The obligations of both sides are specified. Separately indicated as the obligations of the seller and the buyer. Two meanings of the term "supply" have been clarified. In the first case, the obligations of the seller upon its completion are reflected, and in the second the buyer's obligation to take it.

Now the buyer and seller at the conclusion of the contract must specify whether they apply the basic terms of delivery in full or with some reservations. Priority choice in determining the conditions remains with the buyer.

A competent approach to the right of priority solution determines the entire further course of the international trade transaction and its benefits, which will be most complete if negotiations can be carried out in such a way that the foreign counterparty pays and organizes the registration of documents and the delivery of the goods abroad.