• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.46
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• pp.3-27
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• 2010

Incoterms are standard trade terms most commonly used in international sales contracts. ICC have updated six times to keep pace with current international trade practices. Amendments and additions were made in 1953,1967,1976,1980,1990 and presently in 2000. ICC is currently revising Incoterms 2000. The new edition, Incoterms 2010, is expected to enter into force on 1 January 2011. In this paper, I reviewed the present conditions of trade terms and the problems of Incoterms 2000 in our country. I hope this paper to contribute to revising works of Incoterms by reference of above mentioned contents, that is to say, ship's rail, expansion of seller's risk liability of FOB,CFR,CIF.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.45
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• pp.33-50
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• 2010

The Incoterms, short for "International Commercial Terms," have been widely used as International Rules for the Interpretation of Trade Terms since 1936. The Incoterms have been revised six times in order to adapt them to contemporary commercial practice. The current version is Incoterms 2000. The revised version of Incoterms 2000 will be published in the fourth quarter of 2010 and will be effective from January 1st 2010. The first and second draft of Incoterms 2010 have been carried out by a small global Drafting Group, representing seven nationalities and various areas of substantive expertise. In this paper, I reviewed the main contents in the 2nd Draft of Incoterms 2010. This paper contributes to help the parties concerned to understand the new changes from Incoterms 2000 and to choose the appropriate trade term.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.13
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• pp.43-68
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• 2000

Incoterms mean the ICC official rules for the interpretation of trade terms which facilitate the conduct of international trade. Thus, the uncertainties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree. Nevertheless, Incoterms has been revised successively to adapt them to contemporary commercial practice. In particularly, substantive changes in Incoterms 2000 have been made in two areas: (i) the customs clearance under FAS and DEQ; and (ii) the loading and unloading obligations under FCA. But it should be stressed that the scope of Incoterms is limited to the contract of sale and not apply to the contracts of carriage, insurance and financing. Moreover, merchants wishing to use Incoterms 2000 should clearly specify that their contract is governed by 'Incoterms 2000'. It is particularly important to note that Incoterms are not dealt with a great number of problems, such as transfer of property rights, breaches of contract and exemptions from liability. Therefore, the contracting parties should clearly agree to the applicable law related their contract of sale, like the 1980 United Nations Convention on Contracts for the International Sale of Goods.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.14
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• pp.51-72
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• 2000

The International Chamber of Commerce introduced in September 1999 its new publication Incoterms 2000(ICC Publication No 560). The ICC was building on the past experiences in its revision works. I have discussed and commented constructively some main features and problems of the new set of terms. Incoterms 2000 takes into account, like already its predecessor did, the possibility that the parties may decide to communicate electronically and replace a paper transport document by an equivalent electronic data interchange message. This possibility will certainly be much more used under the present set of terms. Incoterms 2000 is well recognised by the international legal community, taking into account also the endorsements by UNCITRAL to its predecessor in the early 90's. Incoterms 2000 does not have major competitors remaining. However, the ICC still faces a battle to convince more traders to refer to its terms and to teach traders to understand and to apply them correctly. Incoterms 2000 is a tool for international trade created by a global business organisation. Its members decide every day if and to what extent they make use of this tool. The members of the ICC have participated actively in the drafting and commenting of Incoterms 2000 and thereby shown again a great deal of dynamism in creating rules for their own everyday use. Under these circumstances, "ship's rail approach" related to delivery point, risks and costs should be replaced by "on board approach" under FOB, CFR and CIF terms.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.15
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• pp.33-57
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• 2001

Although the parties did not expressly incorporate Incoterms into their contracts, Incoterms which have reflected a generally authorized principles and custom might be a part of sale contract. As indication of Introduction in Incoterms 2000, although the D-terms are different in nature from the C-terms, since the seller according to the D-terms is responsible for the arrival of the goods at the agreed place or point of destination at the border or within the country of import. Therefore, according to importance of Incoterms, although Incoterms 2000 have been revised in line with the most current commercial practice, because mentioned problems in this paper can be raised, they must be revised through Introduction, Rules or Guide Book of Incoterms.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.49
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• pp.3-41
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• 2011

In this article, the author have studied on main revisions and some recommendations of the Incoterms(R) 2010. Main revisions are as belows. 1. Two new Incoterms rules -DAT and DAP- have replaced the Incoterms 2000 rules DAF, DES, DEQ and DDU. 2. New classification of the Incoterms(R) 2010 are adopted. First class is Rules for any mode or modes of transport(EXW, FCA, CPT, CIP, DAT, DAP and DDP belong to this class.) and second class is rules for sea and inland waterway transport(FAS, FOB, CFR and CIF belong to this class.). 3. Incoterms(R) 2010 rules formally recognizes that they are available for application to both international and domestic sale contracts. 4. The Guidance Notes and Introduction are not part of the actual Incoterms(R) 2010 rules. 5. Under the FOB, CFR and CIF, all mention of the ship's rail as the point of delivery has been omitted in preference for the goods being delivered when they are "on board" the vessel. 6. Incoterms(R) 2010 rules include the obligation to 'procure goods shipped' as an alternative to the obligation to ship goods in the relevant Incoterms rules. 7. Incoterms(R) 2010 rules give electronic means of communication the same effect as paper communication. 8. Incoterms(R) 2010 rules have allocated obligations between the buyer and seller to obtain or to render assistance in obtaining security-related clearances. such as chain-of custody information. Some recommendations are as belows. 1. The parties must incorporate the Incoterms(R) 2010 rules into their contract of sale. 2. The parties must choose the appropriate Incoterms(R) 2010 rules. 3. Specify the place or port as precisely as possible in their contract of sale. 4. Remember that Incoterms(R) 2010 rules do not give the parties a complete contract of sale. 5. Incoterms(R) 2010 rules do not prohibit alteration of Incoterms rule, but there are dangers in so doings. In order to avoid any unwelcome surprises, the parties would need to make the intended effect of such alterations extremely clear in their contract.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.42
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• pp.3-32
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• 2009

As we know, Incoterms are reflecting only the greatest common measure of practice in int'l trade. Therefore we can think them as the commercial practice most widely used in trade. They contain a number of detail under converse mirror image terms because they connect each other like a thread as to all oversea's commercial transactions between importing buyers and exporting sellers. Therefore they afford convenience to exporters and importers in the world because they tell the parties what to do as to transfer of risk and costs, responsibilities in connection with delivery of the goods. Nonetheless, since Incoterms 1936, they have been periodically revising in order to represent contemporary commercial practice. Therefore, according to change of Int'l trade environment, ICC plans to modify to the 2000 Incoterms. I hope to contribute to revising works by reference of above mentioned revision, that to say, aspects of provision, reflection of prevailing most commonly used, promotion of status as uniform rules, provision of convenience of int'l buyers and sellers. harmony with existing int'l instruments, presentation of criteria in variation of Incoterms.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.43
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• pp.53-74
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• 2009

INCOTERMS have been changed almost every 10 years since ICC established INCOTERMS as trade terms for International transaction. Recently transportation has become bigger, and modernized by means of electronic appliances such as RFID, IT, and containerization. FRC, FOR/FOT, FOA were added in INCOTERMS1980 and every conditions are unified into three alphabets in INCOTERMS1990. The best features of INCOTERMS2000 are that FCA substitute FRC, FOR/FOT, FOA and customs formalities were simplified to make clear for each party of contract. It seems that business circles still stick to old customs of their trade like FOB or CIF not only in Korea but in an international practice even though there have been several revisions of INCOTERMS until now. ICC have tried to provide INCOTERMS3000 to solve problems between a theory and an actual condition of international trade. This study has tried to suggest opinions against INCOTERMS3000 and has surveyed a recognition, an actual using situation and issues of INCOTERMS to get improvements. For a recognition of INCOTERMS has been spread as you can find at tables many kinds of business circles still stick to old customs of their trade terms FOB and CIF. Now there are two alternative plans. Firstly, we need to suggest improvements against inconsistency of INCOTERMS to be applied on newly revised INCOTERMS3000 and educating business circles to use proper conditions of INCOTERMS for their doing business. Secondly, we shall participate in revising INCOTERMS to activate multimodal transport conditions of INCOTERMS and provide solutions to fill gap between a theory and an actual condition of international trade. It seems that terms of multimodal transport such as FCA, CPT, or CIP can be a perfect condition for each party of contract. We have examined the inconsistent features of Ship's rail and notions of on board, and observed how to activate multimodal transport terms. These would be hot issues of next revision of INCOTERMS and we provided improvements on each trade terms, THC charges, or others against INCOTERMS.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.14
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• pp.7-35
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• 2000

The purpose of this paper is to examine the meanings of delivery of each trade term in INCOTERMS 2000, to investigate various kinds of transport document as a proof of delivery, and finally to find their problems. As a result of examination, following problems are considered to happen practically. First, a multimodal transport document referred in FOB term seems to be unappropriate because FOB term can be used in sea or inland waterway transport. Second, Assuming resale in transit in CFR or CIF term, non-negotiable Sea Waybill seems to be inappropriate. Third, As Sea Waybill is not a document of title, it can not be a security when the bank negotiate seller's draft. Fourth, INCOTERMS 2000 deleted the reference to charter party in CFR or CIF term. This deletion may raise any legal problems for the liabilities of carrier when the contradictions happen between the charter party B/L and charter party. Finally, if CFR or CIF means symbolic delivery, other documents besides B/L can not be a symbols of goods.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.51
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• pp.3-54
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• 2011

The important and main purpose of revision of Incoterms rules are to adapt it to contemporary commercial practice in world trade, and to contribute to great service to foreign trade. Incoterms$^{(R)}$ 2010 revision basically focuses on trade terms to be used for any mode or modes of transport at compared Incoterms 2000 gouping in four basically different categories, and presents trade terms to be used for traditionally seaborn trade. Therefore the former is for trading in manufactured goods involved in containerization, the latter is for trading in community. This study focuses on a motive of revisions and main features of the Incoterms$^{(R)}$ 2010 rules, an outline, the problems and alternative of them. In conclusion, I would like present as follows; (1) Although they only concerned the models of delivery and critical point, they only say a few of the many factors of a sale contract, that is to say for the devision of fuctions, costs and risks between the contracting parties as supplement law, but the guestion of the legal position of Incoterms rules is various in different countries and scholars. in spite of that, it must focus on the practical application and the wide acceptance of Incoterms rules in world trade. (2) Although they present more simple and clear, unfricative, than Incoterms 2000 rules, in order to help users, the need to unify consistently and fully explanate in contents and expression. (3) Introduction and guidance note of Incoterms$^{(R)}$ 2010 rules basically focuses on the understanding of a motive of revisions as compared Incoterms 2000 rules. But it is well advised to do this on the assumption of understanding the various basic meaning of terms. (4) finally, trade concerned regulations take account of the reflection for the application to domestic and international trade according to formally reconization of availability for both trade.