OPTIMIZATION OF TERMS OF FOREIGN ECONOMIC CONTRACT USING INCOTERMS INTERNATIONAL COMMERCIAL TERMS

Abstract

The article is devoted to the study of the evolution of basic conditions of supply of Incoterms in the international trade sphere to rationalize the mechanism of foreign economic contracts of international business entities by simplifying and compiling its positions and articles, assisting counterparties in finding equal ways to resolve differences parties. The increase in international trade necessitates the unification of the rules of its implementation and the development of common terminology that can be used by counterparties and uniformly interpreted. This is especially important given the need to clearly define the place of transition of the risk of loss or damage to goods in foreign trade, the distribution of costs for insurance and delivery of goods. As a result, basic supply conditions have gradually developed in the practice of international trade, the most common example of which is Incoterms. Today, the basic conditions of supply are the basis for the formation of invoice, customs and initial value of goods crossing the customs border. The current socio-economic situation in Ukraine requires a new approach to a comprehensive study of the factors influencing the formation of the national standardization system, which depends on the foreign economic activity of a particular enterprise and its use of basic supply conditions. This highlights the need to study the peculiarities of the application of the basic conditions of supply of national actors in foreign economic activity. It is justified that the Incoterms rules help regulate the relations of domestic and international trade and can be used in any version agreed by the parties to the agreement, including the Rules of the International Chamber of Commerce on the use of terms for domestic and international trade in 2020. The authors analyze the advantages and disadvantages of applying the terms of supply of all Incoterms for importers and exporters, which allows them to be flexibly used to optimize the terms of foreign trade contracts. It is proved that choosing the terms of delivery of goods you need to calculate the ratio of delivery costs – delivery time, depending on the mode of transport, which provides delivery of goods, in order to make management decisions, the most optimal in each case export-import operations. The choice of the basic condition of supply directly affects the pricing of the entity that carries out or intends to carry out foreign economic activity.