TRADE MARK OF INCOTERMS and SALE CONTRACT BETWEEN EXPORTER AND IMPORTER
Inco Terms for movement of goods is revised as Incoterms 2020. The importers and exporters are suggested to use the latest version. Click here to read the contents of Inco Terms 2020.
It is not necessary to mention trade mark “ ® ” after year as mentioned in ICC Incoterms®. For example, you may mention ‘CFR SINGAPORE INCOTERMS 2020’ instead of ‘CFR SINGAPORE INCOTERMS® 2020’.
Let us discuss an example based on past experience of exporters and importers who used previous version of Inco Terms rules: The sale agreement between exporter and importer says FOB MUMBAI; According to Inco Terms, the buyer has to present ship for loading cargo at the port of buyer’s country. As you know, there is more than one sea port in Mumbai. Here, it is uncertain as to where the buyer must present the ship to the seller for the shipment and the transport of the goods and as to where the seller must deliver the goods. So it is best to avoid these types of issues by being a geographically specific as possible in naming the port, place, or point as the case may be in the chosen Inco Terms. Say in our example, if the port of loading contracted at JNPT MUMBAI, it is best to mention port of loading as JNPT MUMBAI, INCO TERMS 2020.
We can discuss with another example. If the contract between buyer and seller is CIP HOUSTON, the carriage and insurance is paid up to Houston by seller, as per Inco Terms. Here the contract does not say, where in Houston the cargo to be delivered by seller. So, it is best to avoid these types of issues by being as geographically specific as possible in naming the port, place or point as the case may be in the chosen Inco Terms followed by year of Inco terms, ICC versioned.
Inco Terms for movement of goods is revised as Incoterms 2020. The importers and exporters are suggested to use the latest version. Click here to read the contents of Inco Terms 2020.
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