Some typical mistakes and problems stemming from incorrect interpretation and application of Incoterms

Authors

  • Andrej Moiseevich Golubchik The Russian Foreign Trade Academy

Keywords:

Incoterms, transportation terms of goods delivery, international trade contracts, carrier, consignor, freight owner, consignee

Abstract

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.

Author Biography

Andrej Moiseevich Golubchik, The Russian Foreign Trade Academy

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.

Published

2024-02-08

How to Cite

Golubchik, A. M. (2024). Some typical mistakes and problems stemming from incorrect interpretation and application of Incoterms. Russian Foreign Economic Journal, (10), 58–66. Retrieved from https://journal.vavt.ru/rfej/article/view/1326

Issue

Section

Foreign trade activity