A Handy Replacement for Obsolete UCC Trade Terms

National seminar series on “Incoterms for Domestic Use” unveiled

New York, N.Y., July 21, 2005 – Nearly all businesses in the United States will be affected by upcoming changes to the shipment and delivery terms commonly used in domestic B2B transactions. The changes could cause serious complications for those caught unaware.

Recent revisions to Article Two of the Uniform Commercial Code (UCC), a model law for non-retail sale of tangible goods, deleted previous shipment and delivery terms deemed inconsistent with modern practice, while making no recommendations as to their replacement. Article Two of the UCC is incorporated into the laws of all U.S. states except Louisiana, and state legislatures can be expected to adopt the revisions, causing uncertainty between sellers and buyers who haven't agreed upon mutually acceptable replacement terms.

But help is on the way. Sellers, buyer, lawyers, transporters and others involved in negotiating and executing shipment and delivery are invited to attend one of a series of seminars being held nationwide this fall on “Trading In America: Incoterms for Domestic Use,” under the auspices of the United States Council for International Business (USCIB), a leading industry group.

What are Incoterms? Established by the International Chamber of Commerce in 1936, and revised frequently since then, Incoterms stands for “International Commercial Terms.” They are industry-defined standard trade definitions, used in international contracts, that also provide a clearly defined alternative to the deleted UCC shipment and delivery terms.

“While designed for international trade, Incoterms have been used for domestic business within the European Union for years,” observed Frank Reynolds, the author of Incoterms A to Z and leader of the USCIB seminars. “They will work well for U.S. domestic use too, if one simply ignores their references to export clearance and import clearance. The current version, Incoterms 2000, is already well known to many American firms engaged in international trade. The task is to bridge from the old UCC terms so domestic businesses can readily use Incoterms 2000 in their place.”

“Trading In America” seminars will be held in 30 or more locations around the United States beginning in September. Led by Mr. Reynolds, attorney Margaret M. Gatti, and several other legal and business experts, they will seek to educate companies about the coming UCC changes and offer timely guidance on using Incoterms as a replacement. Seminars will present the complicated legal and commercial issues associated with domestic sales contracts in user-friendly American business English.

A full list of “Trading In America: Incoterms for Domestic Use” seminar dates and locations can be found on USCIB’s website at: www.uscib.org/calendar.asp. Online registration and payment is available.

USCIB promotes an open system of global commerce. Its membership includes some 300 U.S. companies, professional service firms and associations whose combined annual revenues exceed $3 trillion. As American affiliate of the leading international business and employers organizations, including the International Chamber of Commerce, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade. More information is available at www.uscib.org.

Contacts:

Frank Reynolds, International Projects, Inc.

(419) 865-6201 or fjr24@aol.com

Davis Hodge, E-Business Manager, USCIB

(212) 703-5061 or edhodge@uscib.org

Seminar series flyer for “Trading In America: Incoterms for Domestic Use”

Full calendar of seminars

More on Incoterms