Some typical mistakes and problems stemming from incorrect interpretation and application of Incoterms
Keywords:
Incoterms, transportation terms of goods delivery, international trade contracts, carrier, consignor, freight owner, consigneeAbstract
The number of participants in foreign economic activities is increasing mainly thanks to the Russian Federation state program «Development of foreign economic activities». However, the new members often do not have sufficient experience and relevant knowledge. An international trade transaction requires not only the contract of sale, but also a number of additional contracts: carriage, insurance, finance, etc. Involvement of new parties might make things complicated. One of the purposes of Incoterms is to define the roles of various parties to contracts of carriage and
insurance. The main purpose of the article is to help traders understand the features of the use of Incoterms, considering some of the unusual situations arising from a misunderstanding of the particular provisions of Incoterms 2010.
