1 WHAT ARE THE SPECIAL TRADE
1. WHAT ARE THE SPECIAL TRADE TERMS?
Export sales transactions usually embody trade terms which are not customary in the home trade. These trade terms have been developed by international mercantile custom and have simplified the sale of goods abroad. They are in universal use in trade transactions but care must be taken as they may be interpreted differently in different countries and their meaning may be modified by agreement of the parties, the custom of a particular trade or the usage prevailing in a particular port.
To avoid any misunderstanding with his buyer the parties may state explicitly what is understood by the use of a particular term of the parties may opt to contract, where appropriate, on standard contract forms issued by trade associations. Alternatively, the Exporter may choose to make reference in his own conditions of sale to sets of standard trade terms, for example, Incoterms or Intraterms,1 the former sponsored by the International Chamber of Commerce under the title of Incoterms 2000. (now known as INCOTERMS 2010), the latter a set of terms developed to eliminate, by the use of plain language, in a “register easily understood by traders”, any doubts as to the meaning of terms.
Even if the parties agree to trade on the basis of a particular term, the term may nevertheless be adapted by the parties to reflect their particular requirements by the addition of duties on either side. It may be stressed, however, that if a particular sale term is adopted by the parties without reference to any published standard set of terms and if a dispute arises, the English court will apply the traditional meaning of this terms, which sometimes differs from the meaning set out in Incoterms and Intraterms or any set of standard terms.2
The Special Trade Terms are designed primarily to define the method of delivery of the goods but are also used to indicate the calculation of the purchase price, and in particular, the incidental charges included therein.3
2.
Export sales transactions usually embody trade terms which are not customary in the home trade. These trade terms have been developed by international mercantile custom and have simplified the sale of goods abroad. They are in universal use in trade transactions but care must be taken as they may be interpreted differently in different countries and their meaning may be modified by agreement of the parties, the custom of a particular trade or the usage prevailing in a particular port.
To avoid any misunderstanding with his buyer the parties may state explicitly what is understood by the use of a particular term of the parties may opt to contract, where appropriate, on standard contract forms issued by trade associations. Alternatively, the Exporter may choose to make reference in his own conditions of sale to sets of standard trade terms, for example, Incoterms or Intraterms,1 the former sponsored by the International Chamber of Commerce under the title of Incoterms 2000. (now known as INCOTERMS 2010), the latter a set of terms developed to eliminate, by the use of plain language, in a “register easily understood by traders”, any doubts as to the meaning of terms.
Even if the parties agree to trade on the basis of a particular term, the term may nevertheless be adapted by the parties to reflect their particular requirements by the addition of duties on either side. It may be stressed, however, that if a particular sale term is adopted by the parties without reference to any published standard set of terms and if a dispute arises, the English court will apply the traditional meaning of this terms, which sometimes differs from the meaning set out in Incoterms and Intraterms or any set of standard terms.2
The Special Trade Terms are designed primarily to define the method of delivery of the goods but are also used to indicate the calculation of the purchase price, and in particular, the incidental charges included therein.3
2.