ICC introduces revised trade terms

International Chamber of Commerce launches latest version of its internationally-recognised trade terms.

KARACHI: The International Chamber of Commerce (ICC) has launched the latest version of its internationally-recognised trade terms - Incoterms 2010 and the ICC Pakistan chapter will train local stakeholders in December to keep up with international standards.

The rules will come into effect on January 1, 2011. A launch conference will take place at ICC’s international headquarters in Paris on September 27.

Short for international commercial terms, Incoterms were first introduced by the ICC in 1936 to help traders avoid misunderstandings by clarifying the costs, risks and responsibilities of both buyers and sellers in delivery of goods.

Representing a new concept in industries regulated by local laws, the rules caused a sensation in the international business world because they were a first real attempt to bring legal certainty to business transactions while simplifying the drafting of international contracts.

Revisions have been made to ensure that the wording of the terms clearly and accurately reflects present day trade practices. The number of rules has been reduced from 13 to 11 with two new rules added.

Published in The Express Tribune, September 24^th, 2010.