10 - 1 - 06 INCOTERMS 2000
WHAT ARE INCOTERMS?
INCOTERMS are a set of international rules for the interpretation of the 13 trade terms published by the International Chamber of Commerce (ICC).
Responsibilities are simply and clearly defined by referring to one of the ICC INCOTERMS. Thus the risk of misunderstanding and
subsequent disputes is eliminated.
Find a complete description and implementation rules at this site
INCOTERMS are a set of international rules for the interpretation of the 13 trade terms published by the International Chamber of Commerce (ICC).
Responsibilities are simply and clearly defined by referring to one of the ICC INCOTERMS. Thus the risk of misunderstanding and
subsequent disputes is eliminated.
Find a complete description and implementation rules at this site
Comentario:
I have had the opportunity to know very well some of those terms, as I work in a company connected with the petroleum industry.
I think it is interesting to know the terms FOB and CIF, very used in maritime transport. I explain them:
when a company buys a cargo FOB (Free On Board) the price only includes the merchandise, so the company has to look for the transportation (freight) and pay for it also. But if this company buys the cargo CIF (Cost, Insurance and Freight) then the price includes the transportation. I mean, the seller sells the merchandise and transports it.
I hope you have understood well.
I think it is interesting to know the terms FOB and CIF, very used in maritime transport. I explain them:
when a company buys a cargo FOB (Free On Board) the price only includes the merchandise, so the company has to look for the transportation (freight) and pay for it also. But if this company buys the cargo CIF (Cost, Insurance and Freight) then the price includes the transportation. I mean, the seller sells the merchandise and transports it.
I hope you have understood well.