What is the role of Incoterms What is the role of Incoterms

International terms are the indispensable content of international terms, and the use of terms clarifies the respective responsibilities, costs and risks of both parties in the handover of goods, and explains the composition of goods. Terminology plays an active role in the international community, mainly in the following aspects:

1) It is conducive to simplifying the procedures for negotiating transactions and concluding contracts between buyers and sellers.

Since each term has its own specific meaning, the buyer and seller can clarify each other's responsibilities, costs and risks in handing over the goods as long as they agree on which terms to close the deal. This simplifies the transaction formalities and shortens the time it takes to negotiate the transaction, which facilitates the speedy conclusion of the transaction and the conclusion of the contract between the buyer and the seller.

2) It is beneficial for both buyers and sellers to calculate ** and costs.

Since the term indicates the constituent factors, when the buyer and the seller determine the transaction, they must consider what subordinate expenses are included in the terminology adopted, which is conducive to the price comparison between the buyer and the seller and the strengthening of cost accounting.

3) It is conducive to resolving disputes in the performance of the contract.

When the buyer and the seller negotiate the contract, if the terms of the contract are not well considered, so that the provisions of certain matters are unclear or incomplete, so that the disputes arising in the performance of the contract cannot be resolved in accordance with the provisions of the contract, in this case, the general interpretation of the relevant terms can be invoked to deal with it. Because the general interpretation of the term has become an international practice, it is a norm similar to the norm of conduct that everyone follows.

4) It is conducive to the business activities of other relevant institutions.

International activities are inseparable from shipping companies, insurance companies and banks, and the successive emergence of terms and international practices related to the interpretation of terms provides an objective basis and favorable conditions for these institutions to carry out business activities and deal with problems in business practice.

1. It saves the time and cost of transaction negotiation.

2. Simplify the transaction negotiation and the content of the sales contract.

3. It is conducive to the conclusion of transactions and the resolution of disputes.

Regulate the different terms used in different countries.

Unify it. This is better for communication.

Business is easy to close.

Chatted with the basically, that's it.

In addition, it is under different norms of usage in different countries.

**The terms are:

1. FOB: is the English abbreviation of Free On Board or Freight On Board, and its Chinese meaning is "Free on Board at the Port of Shipment (Designated Port of Shipment)".

Using this term, the seller shall be responsible for the export customs clearance, delivery of the goods to the ship assigned by the buyer within the port of shipment and within the specified time limit specified in the contract, bear all risks before the goods cross the ship's side at the port of shipment, and notify the buyer in a timely manner.

The risk transfer rules in this article have been amended in the 2010 General Principles of International Terminology Interpretation, and the risk is transferred to the buyer after the goods are loaded on board the ship at the port of shipment. (Since the 2000 General Principles of Interpretation stipulate that the risk of crossing the side of the ship is transferred, it is not convenient to prove whether the side of the ship is crossed, so it is amended.) ）

2. C&F: That is, "cost and freight.""The English abbreviation of the company, which means "cost plus freight" in Chinese Using the term, the seller is responsible for chartering the vessel and booking the vessel according to the usual conditions and paying the freight to the port of destination, loading the goods on board the ship according to the port of shipment and the shipping period specified in the contract and notifying the buyer in a timely manner.

3. CIF: i.e. "Cost Insurance and Freight.""The English abbreviation of , which means "cost plus insurance, freight" in Chinese. In this term, the seller is responsible for chartering and booking the vessel under the usual conditions and paying the freight to the port of destination, loading the goods on board the ship within the port of shipment and the shipping period specified in the contract, and is responsible for the insurance of the cargo transportation and the payment of the insurance premium.

4. FCA: that is, "Free Carrier.""The English abbreviation of , whose Chinese meaning is "free carrier". Using this term, the seller is responsible for handling the customs clearance of the goods for export, handing over the goods to the carrier designated by the buyer at the time and place agreed in the contract, and notifying the buyer in a timely manner.

5. CPT: The English abbreviation of "carriage paid to", its Chinese meaning is "freight paid to the specified destination", using this term, the seller shall enter into a contract of carriage at its own expense and pay the freight to transport the goods to the destination. After going through the customs clearance procedures for the export of the goods, the goods shall be handed over to the carrier at the agreed time and the designated place of shipment, and the buyer shall be notified in time.

**Terms refer to:

Terminology, also known as terminology, is a term that has been produced in long-term international practice to indicate the composition of a transaction and the terms of delivery, and to determine the risks, responsibilities, and cost division between the buyer and the seller.

**Terminology facilitates the negotiation of transactions and contracts between buyers and sellers. Since each of the first terms has a unified interpretation of the obligations of the buyer and the seller, it is conducive to the buyer and the seller to clarify their respective rights and obligations and close the transaction as soon as possible.

What it does:

1. It is conducive to the calculation of both buyers and sellers. Various terms have a clear definition of who bears the costs, freight and insurance premiums, and it is easier for buyers and sellers to calculate the costs and costs.

2. It is conducive to resolving disputes in the performance of the contract. Since the terms are interpreted by the relevant international practices, the disputes between the buyer and the seller in the transaction can be interpreted by the international practices.

The above content refers to Encyclopedia - **Terminology.

The role is mainly manifested in the following aspects:

1. It is conducive to the negotiation and signing of contracts between buyers and sellers. Transaction procedures are simplified, negotiation time is shortened, and buyers and sellers can reach deals and sign contracts faster.

Second, it is beneficial to the buyer and seller of the first and cost accounting.

Since the term indicates the constituent factors, the buyer and the seller must consider what subordinate expenses are included in the terms used when determining the transaction, which is conducive to the comparison between the buyer and the seller and strengthens the cost accounting.

3. Contribute to the settlement of disputes in the course of implementation.

When the buyer and seller enter into the contract, if they take into account the lack of contract terms, certain matters will become ambiguous, resulting in disputes arising in the course of performance that cannot be resolved in accordance with the terms of the contract, in which case the general interpretation of the relevant terms can be invoked to deal with it.

4. Assist other relevant institutions in carrying out business activities.

Its business activities are inseparable from shipping companies, insurance companies and banks and other institutions, and the emergence of the first term provides favorable conditions for such institutions to conduct business and deal with problems in business.