INTERNATIONAL TRADE TERMS: INCOTERMS 2020

Abstract

International trade terms or INCOTERMS rules are standardized terms that define the responsibilities of the buyer and seller during the delivery of goods on the basis of sales contracts, that is, they determine how the price and risks are distributed between the contracting parties, and as such are regularly included in sales contracts around the world. The INOCTERMS rules are one of the most important international instruments in this context, since the issues of transfer of risk and bearing of costs are regulated completely independently of complex legal issues such as delivery of goods or transfer of ownership. They were adopted by the International Chamber of Commerce in Paris, and are subject to regular updating and adjustment to the current needs of the economy, of which the latest edition of the rules is INOCTERMS 2020. According to relevant estimates, today they are used in over 90% of all contracts on the international sale of goods in the world, which reflects their great practical importance.