Summary of INCOTERMS - TERMINOS INTERNACIONALES DE COMERCIO (1)

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Inco terms are international trade terms that are used to standardize the commercial terminology used between parties in a purchase or sale contract. There are 13 different inco terms, which cover different scenarios involving the export and import of goods. The responsibilities of the exporting company depend on the particular inco term that is used. In some cases, the exporting company is responsible for all transport costs up to a certain point, while in others, the importing company is responsible for export formalities.

• 00:00:00 International trade terms, known as "incoterms," are used to resolve conflicts between parties involved in a commercial transaction. Incoterms are found in contracts of purchase and sale, and are used to standardize the commercial terminology used between the parties. There are 13 international trade terms in this category, which cover different scenarios involving the export and import of goods. The first category, "ex works," applies when the exporter only delivers the goods to the importing party's premises. The second category, "free on board," applies when the exporting party assumes all transport and shipping costs up to a certain point. The third category, "cost and freight," covers transactions in which the exporting party is responsible for all transport costs, up to a point specified by the importing party. The fourth category, "transport and delivery," covers transactions in which the exporting party is responsible for all transport costs up to the point where the goods are handed over to the transport provider specified by the importing party. These terms are specific to the commerce between buyer and seller, and should not be confused with other terminology used in shipping contracts, which are independent of the purchase contract and will not be covered in this video.
• 00:05:00 The responsibilities of the exporting company depend on providing the product conveniently packaged and shipped at that moment. The act of delivering the product occurs, and the transfer of costs and risks of the exporting company to the importing company takes place. The burden of responsibility also falls on the importing company in the vehicle that has contracted the seller's formula of selling goods or in factory, which represents the minimum obligation for the exporting company. The exporting company's term "inco term" is usually used in business without experience in international trade or that lack commercial infrastructure in the exterior. It is the only term in which customs formalities of export are run by the importing company. In fact, it might seem paradoxical that the importing company performs the technical function of exporting company, as it is also responsible for making the purchase in the country of origin and is in charge of the necessary documentation for export. In all other terms, these procedures are responsibility of the exporting company. The exporting company's term "inco term" is usually used in business without experience in international trade or that lack commercial infrastructure in the exterior. It is the only term in which customs formalities of export are run by the importing company. In fact, it might seem paradoxical that the importing company performs the