If all the entities involved in an international trade transaction did not agree on a specific set of rules, logistics, legal matters, and finances would become unmanageable. Incoterms, the accepted rules for global trade, were created in 1936, and have been updated frequently since then to align with:
- Transportation methods
- Import and export regulations
- Technological advancements
- Economic factors
Although Incoterms are not legally binding, they benefit both buyers and sellers to a degree that few disagree with their use.
Incoterms Explained for International Trade
Eleven Incoterms or international rules of trade exists. Seven of these cover all different modes of transportation (land, ocean, and inland waterways). The others focus on specific transport modes. They were all created by the International Chamber of Commerce (ICC) and our agreed-upon by the vast majority of trade-focused companies all around the world.
Incoterms provide many benefits for every part of the sales and logistics chain. They define specifics like:
- Who is responsible for arranging transportation of goods.
- Providing documentation for export customs.
- Insurance payments.
- Last-mile delivery services.
Following these rules minimizes the risk of miscommunication and financial imbalance between the buyer and seller.
Why the World Needs These Recognized Rules
The complex network of international trade that goes on every day all around the world involves innumerable laws, regulations, and financial challenges specific to individual countries. In order to facilitate smooth and fair import and export of all manner of goods, Incoterms are necessary. If manufacturers, shipping companies, and logistics firms do not agree on the same rules, global trade would quickly become chaotic.
The Most Common Incoterms Used Today
The latest collection of Incoterms is from 2020. Some firms use previous versions, but up-to-date compliance makes the trade process simpler for everyone involved. These should be worked into contract paperwork at the beginning.
EXW (Ex Works)
This common Incoterm puts all responsibility on the buyer for source-to-warehouse logistics, documentation, and all costs and fees.
DDP (Delivered Duty Paid)
This rule makes the seller responsible for shipping, paperwork, and expenses associated with getting their goods to the buyer’s location.
FOB (Free on Board)
This splits the responsibility to make the seller responsible for getting the export shipment onto the freight carrier. The buyer is then responsible for all costs associated with the transportation and final logistics to their warehouse. This is not use for over land or air transport.
FAS (Free Alongside Ship)
Another intercom only for sea or inland waterway transportation, this one makes the seller responsible for everything up until delivery at the seller side port.
CIF (Cost, Insurance, and Freight)
This is an intermediary step between FOB and FAS. The seller is responsible for getting the products to the ship and paying for transport and insurance. The buyer takes over responsibility for costs after receipt on their end at port.
Incoterms make it possible for import and export companies and individuals to understand all their responsibilities for transportation, insurance, customs fees, and more. Without these agreed-upon rules of commerce, contract terms would grow much more confusing and contentious.
Do you need help with the export or import of your products?
Ikiwa mashirika yote yanayohusika katika shughuli ya kibiashara ya kimataifa hayakubaliani juu ya sheria fulani hususa, vifaa, mambo ya kisheria, na fedha hazingeweza kudhibitiwa. Incoterms ni sheria ya biashara ya kimataifa iliyopitishwa na Marekani mnamo 1936 na imebadilishwa mara kwa mara ili kuendana na kanuni za usafirishaji, usafirishaji na usafirishaji, maendeleo ya kiteknolojia, na mambo ya kiuchumi. Incoterms Ilifafanuliwa kwa Biashara ya Kimataifa Incoterms kumi na moja au sheria za kimataifa za biashara zipo. Sita kati ya hizo zinahusu njia zote tofauti za usafiri (barani, baharini, na njia za maji za ndani). Nyingine hukazia njia hususa za usafiri. Mkataba huo ulianzishwa na Chama cha Kimataifa cha Biashara (ICC) na umekubaliwa na makampuni mengi ya biashara duniani kote. Incoterms kutoa faida nyingi kwa kila sehemu ya mauzo na mlolongo wa vifaa. Wao kufafanua maelezo kama vile: - Nani ni wajibu wa kupanga usafiri wa bidhaa. - Kutoa nyaraka kwa ajili ya forodha ya kuuza nje. - Malipo ya bima. - Huduma za utoaji wa maili ya mwisho. Kufuata sheria hizo hupunguza hatari ya kutoelewana na kutokuwa na usawaziko wa kifedha kati ya mnunuzi na muuzaji. Kwa nini ulimwengu unahitaji sheria hizi zinazotambuliwa Mtandao tata wa biashara ya kimataifa ambayo huendelea kila siku ulimwenguni kote unahusisha sheria nyingi, kanuni, na changamoto za kifedha maalum kwa nchi moja kwa moja. Ili kuwezesha uagizaji na usafirishaji wa kawaida na wa haki wa aina zote za bidhaa, Incoterms ni muhimu. Ikiwa watengenezaji, makampuni ya usafirishaji, na makampuni ya usafirishaji hayatakubaliana juu ya sheria zilezile, biashara ya ulimwengu itakuwa na mvurugo haraka. Incoterms ni moja ya kanuni za kawaida za biashara zinazotumika katika ulimwengu wa leo, na ni moja ya kanuni za biashara zinazotumika zaidi ulimwenguni. Baadhi ya makampuni kutumia matoleo ya awali, lakini up-to-date kufuata hufanya mchakato wa biashara rahisi kwa kila mtu kushiriki. Hizi zinapaswa kufanywa katika nyaraka za mkataba mwanzoni. EXW (Ex Works) - Incoterms hii ya kawaida inaweka jukumu lote kwa mnunuzi kwa vifaa vya chanzo hadi ghala, nyaraka, na gharama zote na ada. DDP (Delivered Duty Paid) ni sheria ambayo inahusu usafirishaji, kazi ya karatasi, na gharama za kupeleka bidhaa kwa mnunuzi. FOB (Free On Board) ni mkataba wa kuuza bidhaa kwa mtoaji na mtoa huduma wa usafirishaji. Mnunuzi ni kisha kuwajibika kwa gharama zote zinazohusiana na usafirishaji na mwisho vifaa kwa ghala yao. Hii si matumizi kwa ajili ya juu ya ardhi au usafiri wa hewa. FAS (Free Alongside Ship) ni mfumo wa mawasiliano wa ndani wa meli, ambao unahusu kuwasiliana na wauzaji wa meli kwa njia ya maji ya ndani, na unahusu kuwasiliana na wauzaji wa meli kwa njia ya bahari. CIF (Gharama, Bima, na Usafirishaji) ni hatua ya kati kati kati ya FOB na FAS. Mfanyabiashara ni wajibu wa kupata bidhaa kwa meli na kulipa kwa ajili ya usafiri na bima. Mnunuzi inachukua jukumu la gharama baada ya kupokea juu ya mwisho wao katika bandari. Incoterms ni kanuni ya biashara ya nje ya nchi ambayo inahusu usafirishaji, usafirishaji, na usafirishaji wa bidhaa, na inahusu usafirishaji wa bidhaa, huduma za usafirishaji, na huduma za forodha. Bila sheria hizo zilizokubaliwa za biashara, masharti ya mkataba yangekuwa yenye kuchanganyikiwa zaidi na yenye kubishaniwa zaidi. Je, unahitaji msaada na mauzo ya nje au uagizaji wa bidhaa zako?