Abstract

Objectives: This study aims to demonstrate the importance of Incoterms and their role in regulating international trade relations, particularly concerning maritime transport. These rules are a set of terms (standard contracts) issued by the International Chamber of Commerce in Paris. These rules have been amended several times since their issuance in 1936, with the latest amendment in 2020. Methods: In studying these rules, we followed a descriptive and historical approach to understand them and demonstrate their importance, as they are considered essential elements in international commercial contracts. They clarify how goods are transferred from the seller to the buyer. Results: This study reached a main conclusion, which is that Incoterms play a significant role in determining the responsibilities between the parties to the commercial contract, and that they have greatly contributed to resolving international commercial disputes. They have also helped unify international trade by standardising documentary credits and international marine insurance contracts. Conclusions: This study reached a set of recommendations, the most prominent of which is the necessity for the International Chamber of Commerce to raise the insurance coverage for the CIF term to the ICC-B clause. In our opinion, the available insurance coverage is insufficient because the potential risk during the transportation of goods is significant.