A STUDY OF INCOTERMS IN INTERNATIONAL BUSINESS PERTAINING TO MANUFACTURING SECTOR (Pages 125-137) by Mr. Vivek Arya in THE INTERNATIONAL MANAGER / ISSN: 2348-9413 (Online); 2348-9405 (Print)

The sole intent of this study is to provide clear understanding on the subject of Incoterms in International Business pertaining to manufacturing sector. International Business here will attend to all the various types of exports and imports that form an integral part of the supply chain in the manufacturing industry. The study will try to shed some light on the various types of methodologies used for procuring materials through the import process followed in the country. An attempt will be made to classify the numerous materials that may be imported by an organization via certain standard ways. This will involve study of various Incoterms practices in the industry. Incoterms refers to a type of agreement for the purchase and shipping of goods internationally. The term, Incoterms, is an abbreviation for International Commercial Terms. They are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contracts for domestic and international trade. They are published by the International Chamber of Commerce (ICC) and are widely used in international commercial transactions. Incoterms provide a common set of rules to clarify responsibilities of sellers and buyers for the delivery of goods under sales contracts. They apportion transportation costs and responsibilities associated with the delivery of goods between buyers (importers) and sellers (exporters) and reflect modern-day transportation practices. Incoterms significantly reduce misunderstandings among traders and thereby minimize trade disputes and litigation. The major focus of this study will be on classifying the different materials according to the Incoterms associated with them and trying to establish the relation between the category of material and the associated Incoterms specific to the material. Keywords: Incoterms - International Commercial Terms, International Business, buyers (importers) and sellers (exporters), International Chamber of Commerce (ICC)