Incoterms, what are they?
Incoterms are rules codified by the International Chamber of Commerce to regulate the purchase and sale of goods for what concerns returns.
They are optional rules that assume legal value only if both parties, buyer and seller, insert them explicitly and appropriately codified in the contract.
Knowing how to use Incoterms properly allows you to simplify the management related to the delivery of goods.
Let’s take an example …
Clauses can define exactly where and when the risk of transporting goods passes from the seller to the buyer, a great advantage in terms of defining the contract!
And again, thanks to Incoterms it is possible to precisely define who is responsible for the costs of packaging, transport and control of the goods.
Why use Incoterms?
They represent optional clauses and deal with a specific part of the contract or the delivery of the goods by carefully regulating the individual steps.
Being optional clauses it is possible to choose which rules to adopt according to your needs.
Adequately using the Incoterms rules is very advantageous, because it allows you to better define the risks, costs, methods, individual steps, making the commercial relationship much more peaceful and protected.
Who can use Incoterms?
Incoterms are mainly used in international trade, however, for convenience, someone also uses them internally and apply to all commercial contracts in any sector to all types of goods without restrictions
The structure of the clauses is rather complex when viewed in detail, what matters is that these clauses are an excellent tool for commercial protection.
With the changes made in 2020 then the Incoterms have further improved in some parts, making their use more effective.
When to use the clauses.
Evaluating when, how and if it is appropriate to include the Incoterms clauses in your contract requires careful reflection and evaluation, which must be carried out case by case.
The use of this contractual protection tool must certainly be explicitly defined by the parties.
It is important to know that, to insert the clauses in a contract, it is not enough to quote them by reporting the relevant code, but it is necessary to follow precise rules and appropriate sentences so that they are valid and effective, according to specific parameters and methods.
Incoterms clauses are therefore effective tools to make an international commercial transaction much more streamlined and serene!