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The History of the International Rules and Trade Terms in International Trade Practices

February 28, 2017 • admin

In 1921, in order to provide a uniform rules for trade terms in the international trade, International Chamber of Commerce authorized “the Committee of Trade Terms” to collect the regulations of trade terms form every country in London.
In 1928, International Law Association, meeting in Warsaw, Poland, established uniform rules relating to CIF sales contract, named as the “Warsaw 1928 Rules” by 1932. After the Oxford meeting of the Warsaw rules were amended, named as the “Warsaw 1932 — Oxford Rules??? of a total 21 full texts. This rule is mainly to explain the nature and characteristics of CIF contract of sale, and specifies use of CIF trade terms.
After several years of consultations and seminars, in June 1936, International Chamber of Commerce established rules for trade terms, named as the INCOTERMS l936, and which had made a contribution to the development of trade terms.
In 1941, Revised American Foreign Trade Definitions 1941 was established by nine business groups in American. And the Revised American Foreign Trade Definitions 1941 made a definition for six international trade terms:
1. Ex (Point of Origin)
2. FOB (Free on Board)
3. FAS (Free Along Side)
4. C&F (Cost and Freight)
5. CIF (Cost, Insurance and Freight)
6. Ex Dock (Named Port of Importation)
With the development of international trade, International Chamber of Commerce was formulated in 1936 and revised in 1953. INCOTERMS l953, as amended for the eight types of trade terms, in 1967, added two trade terms, namely, “Delivered at Frontier” (DAF) and “Delivered Duty Paid” (DDP); 1976 years and added that the “shipment airports delivery “(FOA); 1980 years and increase the” goods for the carrier “(FRC) and the” freight, insurance, attached to the (destination) “(CIP), to 1980, the Fourth Amendment INCOTERMS 1980, have 14 kinds of trade terms. INCOTERMS l990 came into effect in July 1, 1990, a total of 13 kinds of trade terms. And INCOTERMS 2000 was promulgated in Journey 1, 2000 and which is the most comprehensive rules for trade terms by now.

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