The international commercial terms are officially known as Incoterms. These trade rules, established by ICC (the International Chamber of Commerce) are written and pronounced in English. Mastering ...their use is necessary to circumvent any confusion in the meaning, and to avoid any misunderstanding between the contracting parties. These incoterms are universally agreed upon, except for the United States where a difference in their meaning is noticed, mainly the incoterm FOB (Free on Board). Although they are mandated as multinational business terms, they do not regulate the transfer of ownership of the merchandise nor the sale price. Despite the difference in their meanings, it should be noted that they constitute broad lines for commercial exchanges between countries. Some of their advantages are: The distribution of costs related to export and import, the distribution of documents between the seller and the buyer, and the conditions for the delivery of goods. They are stated to enable trading partners to reach markets throughout the world. To apply incoterms for overseas shipment, maritime transport companies need to make sure that their staff understand them clearly to avoid any costly mistakes in the process of transactions. Collaboration with educational institutions and training courses are required. Both current and future Algerian professionals in the field need to be assisted on how to use incoterms. This research paper deals with the use of shipping incoterms when training the students, who are specialized in maritime trade, for a future profession as a maritime leader or dealer. As the incoterms are basically written and pronounced in English, the use of a translating method, that allows them to identify and understand the meaning of linguistic terms, is required. Bearing in mind the fact that artificial intelligence covers a wide range of outputs nowadays, it has been necessary to ask the following question: Could the T M (translation machine) provide the students a faithful translation of incoterms? In an attempt to answer this question, the following hypotheses were formulated: Teaching EOP (English for occupational purposes) in the Algerian maritime sector focuses on translating the international commercial terms. Machine translation provides a faithful meaning of words and sentences. As the software performs translation for a specific language or domain, it produces a high-quality output. To check these hypotheses, it is essential to go through the MT translation method for it is mostly used by the learners as it is free from any charges. The MT (Machine Translation) method is what a computer program produces. To fulfil a translation, the text is simply entered or pasted in and the languages are selected. Google Translation is a well-known example of this type of translation. The use of this software enables the students to substitute mechanically and quickly words from one language to another. It exempts them from any human linguistic intervention. Though it provides free and instant translations, it produces incoherent wording. The present study reveals that different electronic sites do not give the same translation for the incoterm FOB. One way of evaluating the quality of machine translation is when the human translator reviews the output to ensure that it is linguistically correct. This review is referred to as the post-editing machine translation. When adopting this method, a good quality of translation is achieved; grammatical errors are fixed, unclear and confusing wording and mistranslations are cleared up.
This paper reports the results of a research work carried out among manufacturing companies of the metropolitan area of Turin (Italy) to investigate status and motivation for outsourcing transport ...and logistics services or for choosing otherwise, as well as to clarify which commercial terms are used and why, since the choice of commercial terms affects transport and logistics. Also other points, including e-commerce and logistics, were examined. The work involved interviewing the managers of sixteen manufacturing companies of different types and was carried out during 2016-2017, on behalf of the Association of transport and logistics companies belonging to the “Unione Industriale” of Torino.
The article describes logistics technology perspectives, including reduced transport costs, improved quality of services provided to senders and recipients of goods, and accelerated capital turnover. ...The cost calculation method has been developed for "E", "F", "D" and "C" delivery terms. The export cargo delivery cost to time ratios have been developed based on the Incoterms rules. The article suggests creating a mixed transport and logistics union and presents a macro-level scheme of the innovative infrastructure for this mixed transport and logistics union. The implementation of the strategy of minimizing the total logistics costs is complicated by the weak formalizability of the parameters of the quality of logistics services and the subjective assessment of the quality of service by consumers. The desire to take into account most of the key factors in the logistics strategy obviously leads to the need to apply the methodology of multi-criteria optimization. There are a number of methodologies and models that offer multimodal transport timing, for example, "network models", "additive and multiplicative models", but they all consider time at the level of the domestic market and, most often at the level of one organization, all this is micrologistics. The authors are interested in an innovative method for calculating the time that can be applied for export shipments in combination with the terms of Incoterms specified in contracts.
Tujuan penelitian ini untuk mengetahui dan menganalisis kedudukan incoterms selaku hukum kebiasaan internasional dalam perjanjian perdagangan internasional serta untuk mengetahui dan menganalisis hak ...dan kewajiban pengusaha eksportir dan importirsehubungan dengan penggunaan Incoterms dalam perjanjian perdagangan internasional (Studi pada PT. Insan Bonafide di Banjarmasin). Kegunaan yang di harapakan dari hasil penelitian Sebagai sumbangan pemikiran dalam bidang ilmu hukum khususnya terkait dengan hukum perdagangan internasional, bagi pelaku usaha di bidang perdagangan internasional dan bagi pemerintah dalam membuat peraturan perundang-undangan (legislasi) berkenaan dengan perdagangan internasional. Metode penelitian ini menggunakan jenis penelitian hukum normatif,yaitu penelitian hukum yang dilakukan dengan cara meneliti bahan hukum(bahan hukum primer, bahan hukum sekunder, dan bahan hukum tersier), yang relevan dengan judul yang di angkat penulis. Ada pun tipe penelitianadalah penelitian dengan menitikberatkan permasalahan yang sering timbul berkaitan dengan kekaburan hukum (vagenorm) berkenaan dengan makna dan ruang lingkup dari Incoterms tersebut. Pendekatan penelitian menggunakan pendekatan analitis (analytical approach).Menurut hasil dari penelitian tesis ini menunjukan bahwa : Pertama, mengenai kekuatan hukum Incoterms dalam perjanjian perdagangan internasional, Incoterms yang lahir dari hukum kebiasaan dan sebagai suatu kebiasaan internasional yang berkedudukan hukum yang merupakan sumber hukum perdagangan internasional. namun demikian kekuatan hukum Incoterms selaku hukum kebiasaan internasional tidak sama dengan kekuatan hukum dari Perjanjian Internasional seperti Konvensi, Traktat, Piagam, Agreement, Covenant, Protocol, Pacta, dan lain-lain. Kedua, hak dan kewajiban pengusaha eksportir dan importir sehubungan dengan penggunaan Incoterms dalam perjanjian perdagangan internasional khususnya pada PT. Insan Bonafide dengan menggunakan Incoterms yang telah di sepakati oleh kedua belah pihak namun kenyataannya di lapangan cukup sering ketentuan-ketentuan Incoterms yang telah disepakati oleh para pihak kemudian dilanggar oleh salah satu pihak. karenabelum adanya pengaturan yang sempurna di Incoterms ini maka dari itu lah Incoterms masih menimbulkan permasalahan dalam aplikasi/penerapannya di lapangan karena masih terdapat kekaburan hukum mengenai ruang lingkup dan batas-batas tanggung jawab masingmasing pihak antara penjual (eksportir) dan importir
This study aims to contribute to the improvement of a country's transport and logistics (TL) performance assessment by exploring the possibility of using International commercial terms (Incoterms) ...clauses in international sales contracts. Incoterms clauses are commercial terms that clearly determine sellers' logistics commitments. They are also the “channels” that connect trade and logistics. The research explores the relationship between the international TL performance indicators and the Incoterms score (IS) which represents the extent of sellers' logistics commitments in bilateral trade at a national level. As per empirical results, the logistics performance indexes (LPIs) show the significant impact of a country's logistics performance on the IS. The country's economic development is also correlated with the IS and the domestic logistics performance indicators. This correlation is not seen with regards to the global competitiveness of transport infrastructure. Additionally, while the geographic distance does not have a direct correlation, it impacts buyers' or sellers' obligations, when considered along with the LPIs in the gravity model.
According to the empirical results, a conceptual framework for the usage of applied Incoterms clauses for logistics performance assessment and benchmarking is proposed. The policymakers may use ISs as additional indicators when assessing a country's logistics performances as well as to estimate the possibilities of expanding the TL market for promoting international trade flows. Such assessment enables both national and international benchmarking to rely on the national database. The usage of Incoterms clauses for monitoring, assessing, and benchmarking a country's TL performance must be considered more profoundly by the policymakers in the future.
•We study Incoterms clauses used in bilateral trade between Serbia and 148 countries.•Logistics performance index (LPI) impacts the national Incoterms score (IS).•GCI (Tr. Infrastructure) and LPI domestic do not significantly correlate with IS.•IS may be an indicator in assessment & benchmarking of the national TL performances.•A conceptual model is proposed as a part of monitoring and controlling mechanism.
Podmínky INCOTERMS jsou mezinárodně uznávané dodací doložky. Jejich výhodou je srozumitelnost a jednotná interpretace smluvními stranami, a také jednoduché začlenění do smlouvy. Nespornou výhodou je ...i pravidelná aktualizace. Jednotlivé aktualizace odrážejí trendy v mezinárodně obchodní praxi a podle potřeby tedy upřesňují či ruší stávající doložky nebo zavádí nové. Cílem článku je na historickém vývoji doložek INCOTERMS zhodnotit jejich vývoj a vliv na mezinárodní obchodněprávní vztahy a prostřednictvím tohoto nastínit možný budoucí vývoj. Autoři se zamýšlejí i nad tím, zda vzhledem k rychlému technologickému pokroku je současný desetiletý cyklus revize doložek INCOTERMS vhodný nebo zda se jedná o příliš dlouhou dobu. Z nových trendů autoři poukazují na nové typy dopravy, především bezpilotní drony, dále pokračující trend transparentního a bezpečného logistického řetězce.
The New Global Rulers Büthe, Tim; Mattli, Walter
2011., 20110228, 2011, 2011-02-28, 20110101, c2011
eBook
Over the past two decades, governments have delegated extensive regulatory authority to international private-sector organizations. This internationalization and privatization of rule making has been ...motivated not only by the economic benefits of common rules for global markets, but also by the realization that government regulators often lack the expertise and resources to deal with increasingly complex and urgent regulatory tasks. The New Global Rulers examines who writes the rules in international private organizations, as well as who wins, who loses--and why.
We study the roles of the head office (HO) and the business units (BUs) of a multinational corporation (MNC) in reducing income tax and tariff payments through internal transfer prices in ...international trades. Using confidential transfer price data of a large MNC, we analyze how the different elements of internal transfer prices set by the HO and BUs vary differently from external prices with income tax rates, tariff rates, and the tradeoff between the two. Absent severe agency conflicts, we find that the BUs contribute more to tax planning than the HO, despite that explicit incentives to do so are not included in the compensation schemes. The roles of the HO and BUs vary with product market competition, the risk of conflicts with tax and customs authorities, and agency problems within the firm. Moreover, we provide evidence of strategic trade cost allocations among BUs to reduce income taxes.
•Actual internal trade and transfer price data from a multinational corporation•Different components of the transfer price are used for tax and tariff planning•Cost prices already reflect tariff planning, head-office markups tax planning•Price adjustments by the business unit lower taxes and tariffs•Strategic allocation of trade costs via incoterm choices to reduce taxes
Background: There are a few studies that have findings regarding the factors affecting Incoterms® selection decisions, however, the importance weights of the factors weren't revealed prominently for ...importers and exporters separately. This study intends to overcome this gap by examining the factors that influence Incoterms® selections to find out whether there are any differences or not between exporters and importers. For this purpose, we analyzed the importance weights of each factor and ranked them for both two parties. Methods: We constructed a conceptual model based on different approaches, previous studies and expert decisions. Data were collected from 19 experts, 9 of whom are importers and 10 are exporters, via e-mail. We conducted Fuzzy Analytical Hierarchy Process (FAHP) with the geometric mean method to find out the importance weights of each criterion. Results: Findings of the study revealed that the most important factor influencing the selection of international commercial terms for both exporters and importers is “transportation costs” while the least important one is “firm size”. Four factors which are “relations with forwarding agents, type of goods, complexity of transportation and distance” differ according to importers and exporters in their selections. Relations with forwarding agents and distance are found to be more influential for exporters while the type of goods and complexity of transportation are more effective for importers. Conclusions: We conclude that cost related factors are the most influential ones and apart from a few factors, there is no significant divergence between the selection decisions of importers and exporters. The small sample size and the sample consisting of companies operating in different sectors in a particular region are among the limitations of the study. We suppose that the factors determined in this study will contribute to future studies with a larger sample using different analysis methods.
U radu se s teorijskog i praktičnog stajališta prikazuju i analiziraju novi termini Incotermsa iz 2010. godine. Iznose se osnovna opća obilježja nove revizije i posebna obilježja pojedinih termina, ...te se ukazuje na razlike u odnosu na termine Incotermsa iz 2000. godine. Posebno se ukazuje i teoretski obrazlažu odredbe o dužnostima stranaka u odnosu na sklapanje ugovora o osiguranju i ugovora o prijevozu robe. Iznose se i obrazlažu kriteriji za ocjenu koja od stranaka iz kupoprodajnog odnosa u primjeni pojedinih ugovornih termina ima interes za osiguranje robe u prijevozu. Kod obrade pojedinih termina daje se ocjena o njihovoj pogodnosti za uporabu kod prijevoza pojedinim vrstama prometa. Na kraju se ocjenjuje da pravila Incotermsa iz 2010. godine više odgovaraju potrebama suvremene poslovne prakse nego pravila prethodne revizije, te se njihova uporaba preporučuje našim gospodarstvenicima.
This paper from a theoretical and practical viewpoint demonstrates and analyses the new terms of Incoterms from 2010. Basic general characteristics are pointed out of the new revision and special characteristics of certain terms and differences in relation to Incoterms’ terms from 2000 are shown. In particular, the theory is emphasised by explaining provisions about party officials in relation to contract formation on insurance and contracts on carriage of goods. Carried out and explained are criteria for evaluation which are interested in are interested in insuring goods for carriage by parties in contracts of buying and selling in the application of certain contractual terms. In analysing certain terms, assessment is made of their suitability for use in various types of carriage. Finally, it is assessed that Incoterms’ rules of 2010 are more appropriate for the needs of contemporary business practice than the rules from the previous revision and their use is recommended to businesspeople.
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