The article reveals the main consequences associated with the incorrect application and interpretation of international trade rules INCOTERMS

Аннотация

The article reveals the main consequences associated with the incorrect application and interpretation of international trade rules INCOTERMS. On the part of the author to avoid disputes and misunderstandings at the conclusion of foreign economic transactions, the parties have developed recommendations related to the correct application of INCOTERMS. Keywords: INCOTERMS, foreign economic transactions, international sale contract, interpretation, international trade rules, basis of delivery terms. With the dynamic development of international trade relations, the contract for the sale of goods is one of the key legal and economic instruments. This type of contract regulates the terms of transfer of goods between the seller and the buyer, acting as a basis for trade facilitation at both global and national levels. In today's environment, such contracts not only promote economic integration, but also protect the interests of the parties. INCOTERMS rules are designed to settle legal issues that are not reflected in the UN Convention on Contracts for the International Sale of Goods 1980 and are not always equally understood in different countries. At the same time, the correct use of INCOTERMS terms in foreign economic transactions, which determine the basic principles of distribution of responsibility, risks and costs between the parties, is of particular importance. Reflection in international contracts for the sale and purchase of goods INCOTERMS (indicating the wording of the Rules and the trade term) becomes a necessary element of successful conclusion of transactions. This makes it possible to avoid misunderstandings related to the interpretation of delivery terms and minimize risks arising in the performance of contractual obligations. However, incorrect application and interpretation of INCOTERMS may lead to significant consequences for the parties to the contract, including legal disputes, financial losses and disruption of business relations. 147 ACADEMIC RESEARCH IN MODERN SCIENCE International scientific-online conference With the development of foreign economic and foreign trade relations in the Republic of Uzbekistan it is important to conclude foreign economic transactions only in the form of a contract for the international sale of goods and apply international trade rules INCOTERMS. In other types of foreign economic transactions, INCOTERMS rules are not applied, and only on the basis of the international contract of sale of goods, based on the trade term chosen by the parties, contracts of carriage and insurance are concluded. A reference to INCOTERMS in a contract does not mean that their provisions will prevail over the express terms of the contract in interpreting the contract. In order to avoid disputes, it is advisable to “expressly provide in the contract that in interpreting the base terms, the provisions of INCOTERMS shall apply to the extent not otherwise specified in the contract”. The use of INCOTERMS occurs in two cases: firstly, when it is necessary to refer to a specific trade term to determine the resolution of a dispute between the parties to an international sale of goods contract; secondly, when such direct reference is not required, but INCOTERMS is taken into account to assess the fulfilment of a party's duty. The use of universal trade terms allows largely preventing disputes and conflict situations at the stage of contract execution, the resolution of which requires various costs, as well as introduces elements of uncertainty into the relations of the parties. Practice shows that the correct interpretation and precise application of INCOTERMS rules, as well as the basic terms of supply stipulated by these rules, play a key role in the development of foreign economic and trade relations between countries. However, at the stage of contract conclusion the parties often pay more attention to the financial side of the transaction than to a detailed analysis of the contractual terms and conditions. This attitude often leads to difficulties in the fulfilment of obligations, which, in turn, may cause conflicts and disputes. Often the parties concluding a foreign trade contract are unfamiliar with different trade practices in the respective countries, which also leads to disputes. Therefore, the parties should carefully study the terms of the contract and the rules governing contractual relations, and especially pay attention to the terms used in the contract, i.e. when concluding contracts it is necessary to correctly use the basic terms of delivery, specifically refer to the version of the Rules applied in the contract, correctly interpret the applicable terms of INCOTERMS. 148 ACADEMIC RESEARCH IN MODERN SCIENCE International scientific-online conference As DiMatteo correctly pointed out, when choosing trade terms, the parties should be aware of the possibility of conflicts between the chosen term and other terms of the contract. For example, the CIF term shifts the risk for the