UN body commends Incoterms 2000
Paris, 18 July 2000 - The United Nations trade law agency has recommended worldwide use of Incoterms 2000, ICC's standard trade definitions, in international trade transactions.
The UN Commission on International Trade Law (UNCITRAL), the UN body that harmonizes the laws governing international trade, gave its formal endorsement to Incoterms 2000, which came into force on 1 January.
UNCITRAL commended the latest revision of Incoterms as "a valuable contribution to the facilitation of international trade". Incoterms 2000 bring the definitions into line with contemporary commercial practice.
Corinne Truong, ICC's policy manager for international commercial practice, said UNCITRAL's move gave extra legal weight to Incoterms 2000. Ms Truong added: "The endorsement is particularly significant because it applies to a set of trade definitions that has been elaborated by private business as opposed to government regulators."
At the same time as it endorsed Incoterms, UNCITRAL also commended the international use of two other ICC instruments - the Rules on International Standby Practices (ISP98) and the Uniform Rules for Contract Bonds (URCB).
ICC has been the originator of Incoterms ever since the first version was issued in 1936. The terms, precisely defining the responsibilities of buyer and seller in international transactions, are recognized as the international standard by customs authorities and courts in all the main trading nations.
Another United Nations body, the UN Economic Commission for Europe, has meanwhile renewed its own recommendation Number 5, that Incoterms should be referred to by their correct three-letter abbreviations, like EXW, FOB, FCA, and CIF.
The ICC International Secretariat receives a steady flow of e-mailed queries about Incoterms 2000 (ICC Publication 560, obtainable in 21 languages* from ICC Publishing SA or ICC national committees throughout the world).
ICC officials in Paris deal with most queries, but sometimes they are referred to an international panel of experts, which has been specially set up to deal with the most difficult questions put by users.
Incoterms, a protected ICC trademark, have been updated six times since they were first published in 1936.
*Arabic, Bosnian, Chinese (Cantonese), Chinese (Mandarin), Croat, Czech, Dutch, English, Estonian, Finnish, French, German, Italian, Japanese, Russian, Serb, Slovak, Slovene, Spanish, Swedish, Vietnamese