The Incoterms® provide clear rules for international trade. They are standard contract clauses issued by the International Chamber of Commerce (ICC) and used in the majority of international sales contracts. They make it easier for the buyer and seller to reach agreement on the most important contractual terms.
Incoterms® must be explicitly formulated in the contract
FCA (Free Carrier), CIP (Carriage and Insurance Paid to), DPU (Delivered at Place Unloaded): by simply referring to three letters and the place of delivery, the parties are able to incorporate detailed delivery terms into their contract. However, since the Incoterms®do not have the status of law, the parties must expressly include them in the contract.
Choose your Incoterms® carefully!
The Incoterms® regulate important issues such as the transfer of goods from seller to buyer, allocation of transport costs between the parties, liability for loss or damage, responsibility for the customs clearance of imports and exports and the duty to conclude insurance contracts.
You must take great care to choose the correct Incoterms® and AWB is on hand to provide expert advice.