Standard trade terms have been developed by the International Chamber of Commerce (ICC), which introduced its eighth revision ‘INCOTERMS 2010 “currently ICC issued a new version of incoterms 2020”. The ICC has not endeavored to find the ideal solutions and then to recommend the use of such solutions but rather has used the method of assessing the value of the usages actually appearing in the marketplace. Therefore, the Incoterms accomplished the aim by standardizing the meanings of commonly used shipping terms. Although the Incoterms reflect generally recognized principles and practices, the parties are strongly advised to include in their contract in conjunction with the trade term the words ‘the Incoterms® 2010 rules’. The main function of Incoterms rules is that it identified the meaning of many trading terms such as FOB and CIF in terms by offering explanations about what they mean and how they can be interpreted.
Please contact Contact Al Zarooni Advocates & Legal Consultants to get further explanations related to this article.