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What is Incoterms and which Incoterms currently is applied for world trading.

What is Incoterms and which Incoterms currently is applied for world trading.

Incoterms is abbreviated by International Commercial Terms, it is detail terms of goods delivery/receiving during trading deal between sellers and buyers including defining, explanation, abbreviation the terms such as Ex Work (EXW); Fee on Board (FOB); Delivered Duty Paid (DDP)…

Incoterms helps two parties (sellers and buyers) quickly understand each resposibilities during dealing and avoid confusion. It makes the deal correctly and moothly.

Normally, seller sends the quotation with the point out one of the delivery method showing on Incoterms (such as FOB, DDP….) so buyer understands clearlly about goods transportation method.

The history of Incoterms was long and many revision to suit for development of world transportation method. There are some key milestones as below:

-        1936 was the first year of issue Incoterms by International Chamber of Commerce – ICC

-        1976 was year of issue new Incoterms with big update for Air tranportation method.

-        1980, 1990, 2000, 2010 was year issue new Incoterms.

So, as lastest some decade the Incoterms has beem issued at first day of them. The Incoterms 2010 is current revision applied.

The next Incoterms revision is Incoterms 2020 and is drafting at ICC and will be applied on first day of 2020

The next writing we will talk about the change content of Incoterms 2020 comparison with Incoterms 2010