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  • Items proposed for consideration at the next meeting of Dispute Settlement Body December 18, 2019
    The WTO Secretariat has circulated a meeting notice and list of items proposed for the next meeting, on 18 December 2019, of the Dispute Settlement Body, which consists of all WTO members and oversees legal disputes among them. The meeting notice is circulated in the form of a document officially called an “airgram”.
    WTO
  • Report shows trade restrictions by WTO members at historically high levels December 12, 2019
    The Director-General’s annual overview of trade-related developments discussed on 12 December at a meeting of the Trade Policy Review Body shows that trade restrictions by WTO members continue at historically high levels. Between mid-October 2018 and mid-October 2019, the trade coverage of import-restrictive measures implemented by members was estimated at USD 747 billion. This is […]
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  • Ukraine launches safeguard investigation on syringes December 11, 2019
    On 11 December 2019, Ukraine notified the WTO’s Committee on Safeguards that it initiated on 2 December 2019 a safeguard investigation on syringes.
    WTO
  • Appellate Body issues report regarding Moroccan duties on Turkish steel December 10, 2019
    On 10 December the Appellate Body issued its report in the case brought by Turkey in “Morocco — Anti-Dumping Measures on Certain Hot Rolled Steel from Turkey” (DS513). On 4 December Morocco notified the Appellate Body that it had withdrawn its appeal in this dispute.
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Incoterms



 

The International Commercial Terms

 

International Commercial Terms (Incoterms ® 2010) are issued by the International Chamber of Commerce and define the conditions under which international trade transactions take place.

In other words, the Incoterms ® 2010 determine crucial aspects such as the time of the transfer of the risks, which party is liable for cost of transports, insurance costs and custom clearance to name but a few. 

By contrast with domestic transactions, exportation or importation of goods are characterised by a high level of complexity.

Indeed, as you can see in the figure below, an international transaction has to go through several steps likely to be a source of problems.

 

 

Since the Incoterms ®2010 is a standard accepted worldwide, professionals willing to avoid any ambiguity within their International sale contracts, can rely on this strong framework and thereby optimise their risk management processes.

Overall, we can distinguish between two types of Incoterms:

  • – Any mode of transport
  • – Maritime transport applicable for Sea and Inland Waterway

 

 

Incoterms 2010 table

Incoterms 2010 table

 


 

In addition, Incoterms ® rules can be divided 4 groups :

 

Group E: Goods at the buyer’s disposal in the Seller’s premises.

Ex Works (Low commitment)

 

Group F: Main carriage paid by the Buyer

FCA, FOB, FAS (moderate commitment)

 

Group C: Main carriage paid by the Seller

CFR, CPT, CIP, CIP (High commitment)

 

Group D: Seller’s responsible up to agreed delivery address

DAT, DAP, DDP (Very High commitment)

 

 

Attention should be paid to the fact that the transfer of ownership is not determined by the Incoterms rules, but by the terms and conditions of the sales contract.

 

Moreover, it is of paramount importance to clearly specify the Incoterms ®2010 version applicable in the sales contracts. Indeed, since prior versions (such as 2000, 1980 versions for instance) might imply different obligations, by embedding the Incoterms ®2010 version in the sales contract, professionals ensure that business relationships are based on clear-cut set of rules.

In addition, it must pointed out that that electronic documents are considered as an equivalent of paper format provided that the Seller and the buyer agree to use this method of communication. ( must be specified in the contract)