Language is one of the most complex and important tools of International Trade. As in any complex and sophisticated business, small changes in wording can have a major impact on all aspects of a business agreement.
Word definitions often differ from industry to industry. This is especially true of global trade. Where such fundamental phrases as "delivery" can have a far different meaning in the business than in the rest of the world.
For business terminology to be effective, phrases must mean the same thing throughout the industry. That is why the International Chamber of Commerce created "INCOTERMS" in 1936. INCOTERMS are designed to create a bridge between different members of industry by acting as a uniform language they can use.
The Export Council of Australia (ECA) and ANZ have today launched a website for Australian exporters, that simplifies the use of the 10 Free Trade Agreements (FTAs) signed between Australia and other nations.
The new “FTA Tool” (www.ftatool.com.au) is designed to help Australian exporters navigate the basics of Australia's FTAs quickly and easily. It also provides valuable information on doing international business, links to a range of resources and handy video tutorials on a variety of topics, including the Harmonised Code system, applying for certificates of origin, and Incoterms.
The first in our series is the video tutorial on Incoterms. For your reference please download the pdf file of the presentation.