Features of formation and use of Incoterms rules in different editions

Abstract

Introduction. The globalization of the world space is an irreversible process and it requires clear generalizations and systematization. In the trade sphere, these are the rules of Incoterms. The study of these rules is quite an actual problem today, considering that nine interpretations have been formed, the last of which took place this year. The purpose of the paper is to analyze the editions of Incoterms, which are published by the International Chamber of Commerce in order to unify the rules of international trade. Results. As of January 1, 2020, nine editions of the rules of international and domestic trade were formed – Incoterms: 1936, 1953, 1967, 1974, 1980, 1990, 2000, 2010 and 2020. The first systematization of the rules of international trade had six conditions (FAS, FOB, CNF, CIF, EXS, EXQ), which directly related to sea or river transport. The next edition took place only 17 years later. This edition adds three terms of delivery, that did not apply to water transport (FOT, FOR and DCP). The third edition was made in 1967, as a result DAF and DDP terms were added. The fourth edition was published in 1974. This led to the inclusion of a new term FOB Airport – «Free on Board Airport». In 1980, the term FRC (Free Carrier… Named at Point) was introduced. All versions of the rules before 1990 were based on the introduction of additional terms that would be convenient to use in international trade. And in 1990, the International Chamber of Commerce updated the list of Incoterms by eliminating inapplicable and introducing new terms. A new version of the rules was published in 2000, however, neither the quantity nor the names of the terms of delivery have changed. The interpretation of certain terms has changed. The eighth edition was made in 2010, but came into force on January 1, 2011. This interpretation presents eleven conditions of Incoterms. The eighth edition introduced significant changes into the group “D”. The ninth version of the terms of international deliveries came into force on January 1, 2020, indicating the main changes related to product insurance, replacement of delivery from the group “D”, changes in the order of items within the definition of obligations of buyer and seller, etc. Conclusions. The Incoterms rules do not replace the contract between the buyer and the seller, they only define the main obligations, risks and costs, unless otherwise agreed by the parties of the contract. Incoterms are extremely important in the unification of international trade and they will change in the process of international trade in case of occurrence of such a need.