Baker McKenzie in Australia in June, as a part of its Defence and Space Industries Newsletter, published a useful guide to the use of Incoterms, developed by the International Chamber of Commerce to promote a common understanding between the parties of their respective operational obligations within various delivery arrangements.   It says that they are often incorporated by reference into ‘off the shelf’ or ‘precedent’ supply contracts with insufficient thought and consideration given to the specific Incoterm selected and what aspects of their supply contracts need to change to properly incorporate the relevant Incoterm. This failure results in supply contracts that contain inherent inconsistencies with the Incoterms selected. These inconsistencies create uncertainty and may give rise to potential disputes.  The article provides a good, quite thorough but brief guide to the terms themselves.

Note that Incoterms 2020 are due to replace the current Incoterms 2010 with effect from 1st January 2020 (though the 2010 rules will continue to apply for those using them).

See also:


This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: