CHAPTER 6
Incoterms 2000 transactions, you will use different methods of payment, and possibly a different currency, than you do in domestic transactions. In addition, while the terms of sale commonly used in international business transactions often sound similar to those used in domestic contracts, they often have different meanings in global transactions. Confusion over these terms can result in a lost sale or a financial loss on a sale. Thus, it is essential that you understand the various trade terms before you finalize a contract.
IN INTERNATIONAL BUSINESS
Incoterms 2000 and the ICC “Incoterms 2000” is a set of uniform rules codifying the interpretation of trade terms defining the rights and obligations of buyers and sellers in international transactions. Developed and issued by the International Chamber of Commerce (ICC) in Paris, the current version is publication No. 560a from 2000. All international traders should be familiar with these terms and definitions. An excellent book describing obligations of buyers and sellers under Incoterms 2000 is available from: ICC Publishing, Inc; 156 Fifth Avenue; New York, NY 10010 USA; http://www.iccbooksusa.com
Incoterms 2000 1 1. Ex Works (EXW) 2. Free Carrier (FCA) 3. Free Alongside Ship (FAS) 4. Free On Board (FOB) 5. Cost and Freight (CFR) 6. Cost, Insurance and Freight (CIF) 7. Carriage Paid To (CPT) 8. Carriage and Insurance Paid To (CIP) 9. Delivered At Frontier (DAF) 10. Delivered Ex Ship (DES) 11. Delivered Ex Quay (DEQ) 12. Delivered Duty Unpaid (DDU) 13. Delivered Duty Paid (DDP) 1. ICC No. 560a, INCOTERMS 2000, Copyright © 2000 by ICC Publishing S.A. All rights reserved. The guide to Incoterms 2000 that follows is © Copyright 2008 by World Trade Press. All Rights Reserved.
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