Incoterms as a system of rules that are Currently used in order to make the exchange of goods considerably easier
by admin on Tue, 03/11/2014 - 12:48
People have always exchanged goods or services between each other. It is proved by the fact that almost nobody can live without other people and this can be understood differently. Not only is this popular in psychological sense as a result of the fact that everyone doesn’t want to be alone and wants to love and be loved, but also it is related to the fact that we are unable to distribute everything beginning from food and ending on different goods that are needed for us to develop, on our own. This is likely to be also recognized in case of economies, which also lack of some resources and, as a result import them from other countries.
Hence, in order to make this less difficult, several formulas called Incoterms were introduced. Their most important role is to divide the responsibility and duties between two sides. Generally they are known as 3-letter abbreviations, beginning from EXW, in which the buyer is responsible for transport and covers its costs and ending on DDP, where the situation is opposite. These rules at present meet with rising interest of different enterprises all over the world, which are certain that due to them the trade is significantly safer, quicker and less complex. This implies that in case of a business, which would like to start trading or selling their goods abroad, implementation of these rules is almost necessary. Another important fact connected with Incoterms is that they save us a lot of time and trouble referred to for instance additional documentation etc.
Therefore, according to the opinion of miscellaneous experts, due to them the international trade got significantly easier and they have played a significant role in development of the volume of commodities exchanged. This indicates that it is advised to analyze them and take seriously into consideration in case we would like to exchange products with abroad partners. Their implementation according to the opinions of various traders has played a significantly important role concerning improvement of various issues.