What are the advantages and disadvantages of using Incoterms for international trade?
The main benefits of using Incoterms are that they provide a common language across borders, make it easy to compare prices from different suppliers, and enable you to calculate your freight charges. The disadvantages of using Incoterms are that they may not cover every possible scenario, and sellers and buyers may have different preferences for their business.
Which Incoterms are used in e-commerce transactions?
Most B2B sales contracts will be either EXW, CPT, or CIF, while most B2C sales will be CPT or CIF. However, some B2C sales may be made using DDP instead of CPT or CIF.
What Incoterms are used for air freight?
Seven Incoterms may be used for air freight: EXW, FCA, CPT, CIP, DAT, DPU, and DDP.
Can Incoterms be used for domestic shipments?
Yes. Incoterms can be used for domestic shipping as long as both parties agree to the terms and conditions of the shipment.
What Incoterms rules work best with letters of credit?
The Incoterms that are most successful with letters of credit are CIF, CIP, CFR, or CPT. With all of these rules, delivery occurs before the primary carriage.
Can you add qualifications or variations to Incoterms rules?
Yes. Parties may add qualifications or variations to the Incoterms rules as long as they are not contrary to the terms of the Incoterms. However, any such qualification or variation should be clearly indicated in writing between both parties. Without an explicit agreement, it will be assumed that the applicable Incoterm is being used without any qualifications.
Can I Still Use Incoterms 2010?
Exporters and importers who have included "Incoterms 2010 FOB" in the sales contracts have accepted the FOB delivery terms in "Incoterms 2010". They should be stated correctly and clearly on the relevant shipping documents for them to be effective as a contract of sale.