USE OF INCORRECT TERMS CAN COST BUSINESSES DEARLY, SAYS ICC

KUALA LUMPUR, Nov 11 (Bernama) -- The incorrect use of terminologies in
international trade can cost businesses dearly in terms of legal costs and
nullified contracts.

The International Chamber of Commerce Malaysia (ICC Malaysia) said this to
importers, exporters, bankers, freight forwarders and business consultants at a
one-day seminar here Thursday.

The seminar was to help traders avoid misunderstandings by disseminating
information on internationally-recognised trade terms and to also make clear the
costs, risks and responsibilities of buyers and sellers in the delivery of
goods.

ICC Malaysia is the national committee of International Chamber of Commerce
(ICC) in Malaysia. There are 93 national committees of ICC worldwide.

There will be a repeat of the seminar Friday, ICC Malaysia said in a
statement, saying that there had been an overwhelming response for the
event.

The ICC has compiled a list of internationally-recognised trade terms which
it revised and launched on Sept 15 as Incoterms 2010.

These terms will come into effect worldwide on January 1, 2011.

Short for 'international commercial terms', the Incoterms rules were first
created by ICC in 1936 to help traders avoid misunderstandings by clarifying the
costs, risks, and responsibilities of both buyers and sellers in the delivery of
goods.

The Incoterms 2010 rules take into account developments in global trade
since they were last revised in 2000.

These include changes in cargo security, which has been at the forefront of
the transportation agenda for many countries since 9/11, and the increased use
of electronic communications in business transactions.

Revisions have been made to ensure that the wording of the Incoterms rules
clearly and accurately reflects present-day trade practices.

The number of rules has been reduced from 13 to 11 and two new rules have
been created: Delivered at Terminal (DAT) and Delivered At Place (DAP).

The latest version also features guidance notes at the beginning of each of
the rules to help clearly steer the user to the correct Incoterms rule.

-- BERNAMA