ICC is celebrating the 70th anniversary of Incoterms, the cement that keeps the bricks of world trade contracts together. First devised and published by ICC in 1936, International Commercial Terms, known as Incoterms, provide clear definitions that spell out the responsibilities of the buyer and the seller in cross-border sales contracts. Among the best known Incoterms are: EXW (Ex works), FOB (Free on Board), CIF (Cost, Insurance and Freight), DDU (Delivered Duty Unpaid), and CPT (Carriage Paid To).

"Using Incoterms correctly saves time, money and needless litigation," said Charles Debattista, Chair of the ICC Task Force on Incoterms and Vice-Chair of the ICC Commission on Commercial Law and Practice.

In honour of the 70th anniversary of Incoterms, the commission is hosting a series of presentations in Venice tonight. Mr Debattista will be speaking about the present and future role of Incoterms following Incoterms 2000 author and the commission's other vice chair, Jan Ramberg's presentation on their birth and evolution. Emmanual Jolivet, General Counsel at ICC's International Court of Arbitration, will be addressing the role of Incoterms in arbitral jurisprudence.

In his presentation, Mr Jolivet will reinforce the message that proper use of Incoterms alleviates contractual disputes while stressing the need for even greater education efforts. "Incorrect application or outdated use of the terms has contributed to the bulk of disputes involving commercial terms," he said. "Terms like FOB and CIF that are strictly for maritime use, give rise to problems when applied to other modes of transport."

For this reason, he urges traders to read the full text, not just the preamble of the terms, to ensure they are applied correctly. "When ICC representative bodies in each country, known as national committees, host workshops and inform members on how to use Incoterms, it goes a long way in reducing these kinds of cases as well," Mr Jolivet added.

Since the first publication of Incoterms, ICC expert lawyers and trade practitioners have updated it six times to keep pace with the development of international trade. More recently, revisions occurred at 10-year intervals. The current version, Incoterms 2000, has been endorsed by the United Nations Commission on International Trade Law (UNCITRAL). While the English text is the original and official version, authorized translations into 31 languages are also available from ICC national committees.