This paper considers the changes between the Incoterms 2000 and the Incoterms 2010 from a risk management perspective, and highlights the challenges that traders may encounter when dealing with some of these terms. For example, the problematic FOB term and its use in containerisation is not...

A letter of credit (L/C), in international trade may be described as an instrument of finance carrying a conditional guarantee of payment from the overseas (buyer's) bank to the seller. Consequently, a L/C is desirable in high value and/or high risk transactions. The guarantee is conditional...

Incoterms 2010, issued by the International Chamber of Commerce and effective from 1 January 2011, is a set of rules for the delivery of product between sellers and buyers that is routinely incorporated into international contracts of sale. Incoterms 2010, outline, on a mutually exclusive basis,...

The choice of delivery terms in international contracts has significant impact on both physical and financial risks for importers and exporters. This paper considers implications resulting from a recent Australian tribunal case involving transactions based on Delivered Duty Paid (DDP) terms...