Incoterms: Incoterms are universal trade terms published by the International Chamber of Commerce (ICC). They consist of three-digit codes designed to clearly communicate the tasks, costs and risks associated with transporting and delivering goods in international affairs. They describe how responsibility is shared between the seller and the buyer for different parts of the transaction. Download Free Incoterms 2020 Chart of Responsibilities and Transfer of Risk. Shipper: In international trade, the shipper is a term generally used to identify the company that sells the goods to a foreign market. In this case, the shipper may also be designated an exporter or shipper. You need to know who is responsible for all the costs and risks associated with a sales contract between you and your new export market. If you know the international delivery conditions included in your global sales contracts, uncertainties and misunderstandings will be reduced for both you and the buyers of your products. The four rules for international trade established by Incoterms 2010, in which transport is entirely carried out by water, are as follows. It is important to note that these conditions are generally not suitable for shipments in ship containers; the date on which the danger and liability of the goods are transferred is when the goods are loaded on board the ship and when the goods are sealed in a container, it is impossible to verify the condition of the goods there. UN number: An internationally recognized four-digit code for identifying dangerous goods.
See also the creation of the ITA form for dangerous goods. The latest version of Incoterms rules® 2020 is now published by the International Chamber of Commerce (ICC) and copyrighted. The revised rules reflect recent trade developments. As of January 1, 2020, all sales contracts should include reference to the incoterms® 2020 rules. You can visit Incoterms® 2020 rules on the ICC website. However, the two parties involved in an international shipping contract – the buyer and the seller – each have different payment obligations, which vary depending on the type of delivery. You need to know what you are responsible for the organization and payment, and if a shipment arrives in poor condition, which party is responsible for the coverage of the insurance coverage.