Language is one of the most complex and important tools of international trade. As in any business, small changes in writing can have a big impact on all aspects of a trade agreement. Definitions of words often differ from one sector to another. This is especially true in world trade. When these key phrases such as “delivery” can have a very different meanings regarding the business world. For business terminology to be effective, there must be phrases that mean the same across the industry. That is the main reason why the International Chamber of Commerce (ICC) created the “INCOTERMS” in 1936.
INCOTERMS are designed to create a bridge between different members of the industry, acting as a uniform language they can use. Speaking in internationally terms, each INCOTERM refers to a type of agreement for the purchase and transport of goods. There are 13 different terms, each of which helps users to deal with different situations involving the movement of goods.
An incoterm represents a universal term for a transaction between importer and exporter, so that both parties understand the tasks, costs, risks and responsibilities, as well as logistics management and transportation from the product outlet until receipt by the importing country.
ICC (International Chamber of Commerce or ICC: International Chamber of Commerce) has been responsible since 1936 (with revisions in 1945, 1953, 1967, 1976, 1980, 1990, 2000 and 2010) for the development and updating of these terms, according to the changes we are experiencing international trade.
Currently are in force Incoterms 2010 (from January 1, 2011), without this meaning that earlier Incoterms have ceased to be used. Hence, the need to point the Incoterm and year of release.