responsibilities of purchasers and sellers for the delivery of goods

The International Chamber of Commerce (ICC), through its International Commercial Terms (Incoterms), provides a set of international rules for the interpretation of the most commonly used trade terms in international transactions. Incoterms define the responsibilities of purchasers and sellers for the delivery of goods, including the costs and risks associated with the transfer of goods from the seller to the purchaser in different locations.

For example, the Incoterm CIP (Carriage and Insurance Paid to) requires the seller to arrange and pay for transportation and insurance up to the delivery point, while the Incoterm FOB (Free on Board) requires the buyer to arrange and pay for transportation and insurance from the delivery point to the final destination.

Using Incoterms helps avoid misunderstandings and disputes between purchasers and sellers regarding the delivery of goods. It is important for businesses engaging in international trade to familiarise themselves with the Incoterms and to ensure that the agreed Incoterm is stated clearly in the contract of sale.