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INCO terms
You learnt that specifications, delivery period and destination are all dependent factors on a particular project. Let us know about the international standards set for any project.
The INCO terms (International Commercial Terms) is a universally recognised set of definitions of international trade terms such as EXW (Ex Works....named place), FOB (Free on Board... named port of shipment), CFR (Cost and Freight.... named port of destination), and CIF (Cost, Insurance and Freight.... named port of destination). The INCO terms are developed by the International Chamber of Commerce (ICC) in Paris, France.
For example, for national procurement the trade term often used is FOR (Free on Rail), it defines the trade contract responsibilities and liabilities between the buyer and seller. It is a cost saving tool. The exporter and the importer need not undergo a lengthy negotiation about the conditions of each transaction. Specifying the appropriate INCO TERM in the bid document helps to arrange the responsibility of the seller, which enables him to submit the bid accordingly.
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