Because they use Incoterms for international sales, some companies have started using Incoterms for their domestic sales, instead of using the terms of the Uniform Commercial Code (UCC). This is quite acceptable as long as their contracts indicate the conditions they apply. Incoterms® 2010 are a set of standardized rules for the interpretation of international and national trade conditions. Incoterms 2010 is often used in contracts for the purchase of goods to settle aspects of the relationship between buyer and seller. In previous versions, the rules were divided into four categories, but the 11 predefined terms of the Incoterms 2020 are divided into two categories based solely on the type of delivery. The largest group of seven rules can be applied regardless of the mode of transport, the smallest group of four applying only to sales involving exclusively inland waterway transport, where the condition of the goods can be checked at the place of loading on board the ship. They cannot therefore be used for container freight, other modes of combined transport or for transport by road, air or rail. As a general rule, an international carrier does not make the goods available to a seller who does not dispose of the goods directly. Under the new Rules of Incoterms 2020, FCA allows the parties to agree, in the contract of sale, that the buyer must order its carrier to issue the seller with a bill of lading with the ship`s letter. As stated in the ICC Guide to Incoterms 2010, parties sometimes insert a term “loaded” into their sales contract after the reference to EXW Incoterm, i.e.
called EXW. Such an addition is normally intended to extend liability to loading operations. However, in the absence of further clarification, it is rather difficult to say whether such a term means “charged at the risk of the seller” or “charged at the risk of the buyer” and is interpreted in the event of a dispute. In this regard, if “loaded” is to extend liability to the seller, the parties may consider inserting the FCA Incoterm (see below) and not EXW in their contract. However, you should bear in mind that the ACF Incoterm requires that the obligation to collect the goods is also borne by the seller.  Incoterms® 2010 is a set of standard rules for the interpretation of international and domestic trade conditions. Incoterms® 2010 are often used in contracts for the purchase of goods to settle aspects of the relationship between buyer and seller….