Versions
In practice, it frequently happens that the parties themselves want to achieve more accurate term, adding words to the Incoterms. It should be underlined that Incoterms give no guidance whatsoever for such additions. Thus, if the parties can not rely on the established tradition of trade for the interpretation of such additions they may encounter serious problems when no consistent understanding of the additions.
For example, using common expressions "FOB stowed" or "EXW loaded" impossible to achieve a common understanding throughout the world, so that the seller's obligations have been extended not only to the value of the actual loading of the goods on the vessel or vehicle, respectively, but included the risk of accidental loss or damage during shipment. For these reasons, the parties are strongly advised to clarify whether they only mean that the function or the cost of loading operations should fall upon the seller, or that he should also bear the risk until the actual completion of loading. Questions to which Incoterms do not provide an answer: consequently, if the contract also clearly describes the intent of the parties, the parties may be unnecessary trouble and expense. Although Incoterms 2000 do not provide many of these commonly used variants, the preambles to certain trade terms do alert the parties to the need for special contractual terms if the parties wish to go beyond the stipulations of Incoterms.
- EXW - added obligation for the seller to load the goods on the buyer's collecting vehicle
- CIF / CIP - the buyer's need for additional insurance
- DEQ - added obligation for the seller to pay for costs after discharge
In some cases sellers and buyers refer to commercial practice in liner and charter trade - lots. In these circumstances, it must clearly distinguish between the obligations of the parties in accordance with the contract of carriage and their obligations towards each other under the contract - the sale. Unfortunately, there are no authoritative definitions of expressions such as "liner terms" and "handling charges at the terminal" (THC). Allocation of costs in accordance with these conditions may be different in different places and change. Parties are encouraged to clarify in the contract - sales, these costs should be distributed between them.
Expressions frequently used in the charter - parties, such as "FOB stowed", "FOB stowed and brought into a state of readiness," sometimes used in contracts - the sale in order to clarify to what extent the seller under FOB has perform stowage and trimming of the goods in a state of readiness on board. In the case where such words are added, it should be clarified in the contract of sale whether the added obligations only relate to costs or to the costs and risks.