International economic activity

Foreign economic activity

International Commercial Term

International commercial terms — are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law. They are widely used in International commercial transactions or procurement processes as the use in international sales is encouraged by trade councils, courts and international lawyers. МA series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods. Incoterms inform sales contract defining respective obligations, costs, and risks involved in the delivery of goods from the seller to the buyer. However, it does not constitute contract or govern law. Also it does not define where titles transfer and does not address the price payable, currency or credit items.
he Incoterms rules are accepted by governments, legal authorities, and practitioners worldwide for the interpretation of most commonly used terms in international trade. They are intended to reduce or remove altogether uncertainties arising from different interpretation of the rules in different countries. As such they are regularly incorporated into sales contracts worldwide. There are certain terms that have special meaning within Incoterms, some of the more important ones are defined below:

  • Delivery: The point in the transaction where the risk of loss or damage to the goods is transferred from the seller to the buyer.
  • Arrival: The point named in the Incoterm to which carriage has been paid.
  • Free: Seller has an obligation to deliver the goods to a named place for transfer to a carrier.
  • Carrier: Any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport by rail, road, air, sea, inland waterway or by a combination of such modes.
  • Freight forwarder: A firm that makes or assists in the making of shipping arrangements.
  • Terminal: Any place, whether covered or not, such as a dock, warehouse, container yard or road, rail or air cargo terminal.
  • To clear for export: To file Shipper’s Export Declaration and get export permit.