Who Uses Incoterms®?
Primarily the buyer and seller of goods utilise Incoterms® for the negotiation of domestic and international trade contracts. This extends to third parties for the provision of associated services, such as financial institutions, freight forwarders, carriers, lawyers, etc.
Why are Incoterms® Important?
Incoterms® rules are designed to simplify trade contracts and reduce the likelihood of disputes between the buyer and seller of goods. Where challenges may otherwise exist, Incoterms® offer an internationally recognised standard which transcends language, customs and legal systems. This saves time and effort throughout the sales negotiation process, removing the need for customised and lengthy trade contracts defining obligations which are predefined within the Incoterms® rules.
The International Chamber of Commerce has produced a brief video to help explain Incoterms® and their use: