Objective Incoterms is maintenance of the complete set of the international rules on interpretation of the most commonly used trading terms in the field of foreign trade. Thus, it is possible to avoid or, at least, substantially to reduce uncertainty of various interpretation of such terms of the various countries.


Frequently the sides concluding the contract, are unfamiliar with various practice of conducting commerce in the appropriating countries. It can serve as the reason for misunderstanding, disagreements and proceedings with following waste of time and money. For permit of all these problems the International chamber of commerce has published for the first time in 1936 the arch of the international rules for precise definition of trading terms. These rules are known as « Incoterms 1936 ». Corrections and additions later have been made in 1953, 1967, 1976, 1980, 1990 and now in 2000 for reduction of these rules conformity with modern practice of international trade.

It is necessary to emphasize, that the area of action Incoterms is limited by the questions connected with the rights and duties of sides of the contract of sale and purchase concerning delivery of the sold goods (the goods here are meant a word « the material goods », excepting « the non-material goods », such as the computer software).

Most often in an expert there are two versions of wrong understanding Инкотермс. The first is wrong understanding Incoterms as having the greater attitude to the contract of transportation, instead of to the contract of sale and purchase. The second is sometimes the wrong concept that they should cover all duties, which sides would like to include in the contract.

As always it was emphasized by the International chamber of commerce, Incoterms deal only with attitudes between sellers and buyers within the limits of contracts of sale and purchase, moreover, only in the certain aspects.

While it is important to exporters and importers to consider actual attitudes between various contracts, Necessary for realization of the international deal of sale — where it is necessary not only the contract of sale and purchase, but also договоры transportations, insurances and financings — Incoterms concern only to one of these contracts, namely the contract of sale and purchase.

Nevertheless, the contract of sides to use the certain term matters and for all other contracts. Let's result some examples: having agreed on conditions CFR or CIF, the seller cannot execute this contract any other type of transport, except for marine as on these conditions it should present the buyer the consignment or other marine transport document, that is simply impossible at use of other types of transport. Moreover, the document necessary according to the documentary credit, it will be mandatory to depend on means of transportation which will be used.

Secondly, Incoterms deal with some certain duties of sides — such as a duty of the seller to put the goods in the order of the buyer or to pass it for transportation or to deliver it in destination — and with distribution of risk between sides in these cases.

Further, they are connected with duties to clear the goods for export and import, packing of the goods, a duty of the buyer to accept delivery, as well as a duty to present confirming that appropriating obligations have been properly executed. Though Incoterms are extremely important for realization of the contract of sale and purchase,A plenty of problems which can arise in such contract, transfer of the right of possession, other property rights, infringements of the arrangement and a consequence of such infringements, as well as deliverance of the responsibility to the certain situations are not considered at all, for example. It is necessary to emphasize, that Incoterms are not intended for replacement of the treaty provisions necessary for the full contract of sale and purchase or by means of inclusion of normative conditions, or individually stipulated conditions.

Incoterms at all have no business with consequences of infringement of the contract and deliverance of the responsibility owing to various obstacles. These questions should be resolved by different conditions of the contract of sale and purchase and appropriating laws.

Incoterms initially always intended for use when the goods were on sale for delivery through national borders: thus, it is the international trading terms. However, Incoterms in practice frequently join in contracts for sale of the goods extremely within the limits of home markets. When Incoterms articles А.2 are used thus. And Б.2. And any different conditions of other articles, concerning export and import, certainly, become extra.