Abbreviations of Incoterms / Alphabetic Code for Incoterms 2000
- Type: Trade usages
- Date of signature: 01/05/2000
- Place of signature: Paris, France
- Depositary: United Nations Centre for Trade Facilitation and Electronic Business
- Date of entry into force: N/A
What is it about?
Incoterms, or international commercial terms, are international rules that are accepted by governments, legal authorities and practitioners worldwide for the interpretation of the most commonly used terms in international trade. They serve to reduce or remove uncertainties arising from differing interpretations of such terms in different countries. They allow for clarity regarding the transfer of rights from seller to buyer. The scope of Incoterms is limited to matters relating to the rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold. Each Incoterm is referred to by a three-letter abbreviation. Among the best-known Incoterms are EXW (Ex works), FOB (Free on Board), CIF (Cost, Insurance and Freight), DDU (Delivered Duty Unpaid), and CPT (Carriage Paid To). There are 13 total. Published by the International Chamber of Commerce (ICC), Incoterms have been the subject of several revisions to reflect developments in international trade. The ICC introduced the first version of Incoterms in 1936. They have since undergone six revisions (1953, 1967, 1976, 1980, 1990 and 2000). Contracts made after 1 January 2000 refer to the latest edition of Incoterms, which came into force on that date. The correct reference is to "Incoterms 2000".
Why is it relevant?
Reference to Incoterms in international contracts reduces some of the uncertainty inherent in an international transaction. Their usage also limits misunderstandings, and the risk of costly litigation.
Incoterms have been officially translated in 31 languages. National law prevails in instances of conflict between Incoterm rules and local law.