INCOTERMS

The most common error is an incorrect Incoterms (International Commercial Terms) application since of its statement in the commercial bill should include, not inside the SPREADSHEET, the total expenses of transportation and insurance until the importation point of the merchandise.

In many occasions the incoterm is not defined, duplicating the value of declared items.

The Incoterms are an assembly of international rules, governed by the International Chamber of Commerce, that determine commercial clauses included in the international contract of sale.

The Incoterms also are called clauses of price, therefore each permit to determins the elements that compose it. The selection of the Incoterm influences on the cost of the contract.

The purpose of the Incoterms is to provide a group of international rules for the interpretation of the terms used in international trade.

The Incoterms determine:

• The price.
• Where and when the transfer of merchandise from salesperson to the buyer is carried out.
• The delivery site.
• Who hires and pays transportation
• Who hires and pays insurance
• What documents are involved and the cost.