PURPOSE AND SCOPE OF INCOTERMS

 The purpose of Incoterms is to provide a set of international rules for the interpretation of the most widely used trade terms in the field of foreign trade. In this way, the uncertainty of different interpretations of such terms in different countries can be avoided, or at least significantly reduced. 

   The main purpose of Incoterms is to avoid or at least reduce the uncertainty of different interpretations of specific terms in different countries. In practice, there are often situations when the parties want to achieve the highest accuracy of the term, with the addition of words in Incoterms. Incoterms does not contain any instructions regarding such additions. Therefore, if the parties are unable to rely on established trade practices to explain such additions, they may face serious problems related to the inability to ensure a consistent understanding of such additions.

Incoterms is limited to matters related to the rights and obligations of the parties to the sales contract with respect to the supply of goods sold (the word goods here means "tangible goods", excluding "intangible goods" such as computer software).