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INCOTERMS 2000Entry into force 1st JAN 2000FOREWORDBy Maria Livanos Cattaui, Secretary General of ICCThe global economy has given businesses broader access than ever before to markets all over the world. Goods are sold in more countries, in larger quantities, and in greater variety. But as the volume and complexity of international sales increase, so do possibilities for misunderstandings and costly disputes when sales contracts are not adequately drafted. Incoterms, the official ICC rules for the interpretation of trade terms, facilitate the conduct of international trade. Reference to Incoterms 2000 in a sales contract defines clearly the parties respective obligations and reduces the risk of legal complications. Since the creation of Incoterms by ICC in 1936, this undisputed world - wide contractual standard has been regularly updated to keep pace with the development of international trade. Incoterms 2000 take account of the recent spread of customs - free zones, the increased use of electronic communications in business transactions, and changes in transport practices. Incoterms 2000 offer a simpler and clearer presentation of the 13 definitions, all of which have been revised.The broad expertise of ICCs Commission on International Commercial Practice, whose membership is drawn from all parts of the world and all trade sectors, ensures that Incoterms 2000 respond to business needs everywhere.IONTRODUCTION1.PURPOSE AND SCOPE OF INCOTERMSTbe purpose of Incoterms is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. Thus, the uncertainties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree.Frequently, parties to a contract are unaware of the different trading practices in their respective countries. This can give rise to misunderstandings, disputes and litigation, with all the waste of time and money that this entails. In
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