When arranging an international sales contract, it is important to ensure that there is no confusion over who is responsible for delivering the goods and paying for the transport. Confusion will only lead to delay, loss of profit and create unnecessary problems between you and your trading partner. As an exporter you should use “Incoterms 2000” in your contract to ensure that all the obligations are understood. Incoterms 2000 is a set of rules covering delivery, risks and costs. The rules were developed by the International Chamber of Commerce (ICC) and are recognised in most countries, although do not take precedence over national laws.

When using Incoterms it is important that you refer to the rules and understand the obligations you are placing yourself under. When quoting the particular term in your contract or on commercial documentation you should make specific reference to the rules, for example ‘FOB Southampton – Incoterms 2000.’