Incoterms®, derived from "International Commercial Terms," are globally recognized standard contract terms used to properly define responsibilities and risks between buyers and sellers in international commercial transactions. Incoterms (International Commercial Terms) allow both parties to clarify who is responsible for transportation, insurance, customs clearance and other logistical aspects of a transaction.

Definition of Incoterms® : Incoterms® are a set of standardized contractual clauses. They define the rights and obligations of buyers and sellers in international commercial transactions. In addition, they define delivery terms and the place of delivery. They also allocate costs and risks between the two parties. Furthermore, they clarify responsibilities regarding transportation and customs clearance.

Important aspects of Incoterms® :

• Delivery terms: Determine where and when the risks and costs of the goods pass from the seller to the buyer.
• Responsibilities: Define who is responsible for arranging transportation, insurance, customs clearance and other logistical aspects of the shipment.
• International standardization: Provide a uniform set of terms recognized and used worldwide, facilitating communication and understanding between trading parties.

Example of Incoterms® (International Commercial Terms): A company in the Netherlands sells electronic equipment to a buyer in the United States. Both parties agree to use Incoterms® "FOB Rotterdam." This means that the seller delivers the goods aboard the ship at the port of Rotterdam. From that point on, the buyer takes over responsibility for the transportation, insurance and customs clearance of the goods.

Companies like Neele-Vat, who are engaged in international trade, need to properly understand and correctly apply Incoterms (International Commercial Terms). Using the correct Incoterms® prevents confusion and misunderstandings. In addition, it provides clarity on the responsibilities of both parties. This promotes smooth and efficient handling of international trade transactions.