Do you know your Incoterms? This may seem like an obscure question — something that is responsibility for the sale. But in this time of Brexit uncertainty, the need to know and understand incoterms could quickly get on the to-do list and impact many distribution deals. But whether it is the contracts between the supplier and the distributor or the distribution contract itself, it should be ensured that other contractual obligations are taken into account separately, for example the terms of payment, the transfer of ownership of goods and the consequences of an infringement normally dealt with in a service level agreement (SLA). If the parties believe that all other contractual aspects are covered by an elected incoterm, this will have serious negative consequences. Many disputes are added to the fact that the business community does not understand the importance of establishing a sales contract that preserves the interests of both the seller and the buyer. Incoterms only apply if they have been included in the sales contract or if, for example. B in the offer, the conditions of sale, the order, the order confirmation or if they are agreed separately by the parties. With the new set of revised Incoterms and its requirements, it is important to note that whenever you want Incoterms to apply to your contract, legal members who participate in a multifunctional team must make sure that they should specify this in their contract by offering them: your company has managed the national and international trade. You have contracts for both buying and selling, and you`ve had no problems. I didn`t do it. Trading is complex and agreements must be carefully crafted to ensure that you are supplying or getting the right products in the right condition at the right time. This complexity is increased if you use commercial terms other than Incoterms® or if you use them with a limited understanding of the obligations imposed on you.

Future articles will study them, but let`s focus here on a broad view of Incoterms. While a new series of Incoterms will come into effect in 2020, most of the existing contracts relating to Incoterms relate to Incoterms 2010. Yes, all contracts using any Incoterms are valid if they are agreed by all parties to the transaction and correctly labeled on export-related documents. Although the CCI recommends the use of Incoterms® 2020 from 1 January 2020, the parties to a sales contract may agree to use any version of the Incoterms after 2020. You must clearly specify the chosen version of the Incoterms used (for example. B Incoterms® 2010, Incoterms® 2020 or earlier). Brexit could result in the imposition of tariffs on goods between the UK and the EU (let alone in the UK between Britain and Northern Ireland if the current WITHDRAWAL AGREEMENT BETWEEN THE EU and the UK is approved by an Act of Parliament). Brexit could also lead to a change in tariffs if Brexit is done without a transaction period, with the result that the UK is no longer covered by a trade agreement that the EU has with country X. .