C. ICC INCOTERMS 2000: Report of the Secretary-General (A/CN.9

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  • Part Two. Studies and reports on specific subjects 599

    i(i) upon issue of a certificate of Default by a third party(who may without limitation be an independent architector engineer or a Pre-Arbitral referee of the ICC) if theBond so provides and the service of such certificate or acertified copy thereof upon the Guarantor, or

    (ii) if the Bond does not provide for the issue of a certificateby a third party, upon the issue of a certificate of Defaultby the Guarantor, or

    (iii) by the final judgement, order or award of a court ortribunal of competent jurisdiction, and the issue of a cer-tificate of Default under paragraph (i) or (ii) shall notrestrict the rights of the parties to seek or require thedetermination of any dispute or difference arising underthe Contract or the Bond or the review of any certificateof Default or payment made pursuant thereto by a courtor tribunal of competent jurisdiction.

    (k) A copy of any certificate of Default issued under (j) (i) or (ii)shall be given by the Guarantor to the Principal and the Benefi-ciary forthwith.

    (l) The Guarantor shall consider any claim expeditiously and, ifsuch claim is rejected, shall immediately give notice thereof to theBeneficiary by authenticated tele-transmission or other telefax,facsimile transmission, telex, cable or EDI, confirming the sameby letter, setting out the grounds for such refusal including anydefences or other matters raised under paragraph (d) of Article 3.

    Article 8

    Jurisdiction and settlement of disputes

    (a) The Applicable Law shall be the law of the country se-lected by the parties to govern the operation of the Bond and, inthe absence of any express choice of law, shall be the law govern-ing the Contract and any dispute or difference arising under theseRules in relation to a Bond shall be determined in accordance withthe Applicable Law.

    (b) All disputes arising between the Beneficiary, the Principaland the Guarantor or any of them in relation to a Bond governedby these Rules shall, unless otherwise agreed, be finally settledunder the Rules of Conciliation and Arbitration of the Interna-tional Chamber of Commerce by one or more arbitrators appointedin accordance with the said Rules.

    (c) If the Bond shall exclude the operation of the arbitrationprovisions of this Article 8, any dispute between the parties to theBond shall be determined by the courts of the country nominatedin the Bond, or, if there is no such nomination, the competentcourt of the Guarantors principal place of business or, at theoption of the Beneficiary, the competent court of the country inwhich the branch of the Guarantor which issued the Bond is situ-ated.

    1Report of the United Nations Commission on International Trade Lawon the work of its first session, Official Records of the General Assembly,Twenty-third Session, Supplement No. 16 (A/7216), para. 48.

    2Report of the United Nations Commission on International Trade Lawon the work of its second session, Official Records of the General Assembly,Twenty-fourth Session, Supplement No. 16 (A/7218), para. 60.

    C. ICC INCOTERMS 2000: Report of the Secretary-General

    (A/CN.9/479) [Original: English]

    1. By letter of 28 February 2000 (reproduced in annex I),the Secretary-General of the International Chamber ofCommerce (ICC) requested the Commission to considerendorsing Incoterms 2000 for worldwide use. This reportgives the background to the previous actions of the Com-mission in respect of Incoterms 1953 and Incoterms 1990and a short summary of the reasons for the preparation ofthe current revision. The original English text of Incoterms2000 is reproduced in annex II to this document. Trans-lations into Arabic, Chinese, French, Spanish or Russianare reproduced in annex II to the respective language ver-sions of this document.

    2. At the Commissions first session in 1968, in decidingon its programme of work, the Commission identifiedIncoterms 1953 as an international instrument of specialimportance with regard to the harmonization and unifica-tion of the law of the international sale of goods.1 At itssecond session in 1969, with a view to encouraging theworldwide use of Incoterms 1953, the Commission, re-quested the Secretary-General to inform the ICC thatIncoterms 1953 should be given the widest possible dis-semination and to bring the views of the Commission to theattention of the United Nations regional economic commis-sions.2

    3. Amendments to Incoterms were made and additionalterms were added in 1976 and 1980. However, thosechanges in Incoterms were not officially brought to theattention of the Commission and the Commission took noaction leading towards endorsing the revision. By the late1980s ICC decided to completely revise Incoterms 1953 inorder to adapt them to contemporary commercial practice.Incoterms 1990 was adopted by the ICC with a date ofentry into force on 1 July 1990 and became available asICC publication no. 460.

    4. At its twenty-fifth session in 1992, the Commissionconsidered a request of the Acting Secretary-General of theICC to endorse Incoterms 1990 for worldwide use. At thatsession, the Commission was agreed that Incoterms 1990succeeded in providing a modern set of international rulesfor the interpretation of the most commonly used tradeterms in international trade and took the following decisionendorsing Incoterms 1990:

    The United Nations Commission on International TradeLaw,

    Expressing its appreciation to the International Cham-ber of Commerce for having transmitted to it the revisedtext of Incoterms, which was approved by the Commer-cial Practices Commission of the International Chamberof Commerce and entered into force on 1 July 1990, andfor requesting the Commission to consider endorsingIncoterms 1990 for worldwide use,

    Congratulating the International Chamber of Commerceon having made a further contribution to the facilitationof international trade by revising Incoterms to take

  • 600 Yearbook of the United Nations Commission on International Trade Law, 2000, vol. XXXI

    account of changes in transportation techniques and toadapt the terms to the increasing use of electronic datainterchange,

    Noting that Incoterms constitute a valuable contributionto the facilitation of international trade,

    Commends the use of Incoterms 1990 in internationalsales transactions.3

    5. With regard to the reasons for the preparation ofIncoterms 2000, the Foreword to Incoterms 2000 states:

    Since the creation of Incoterms by ICC in 1936, thisundisputed worldwide contractual standard has beenregularly updated to keep pace with the development ofinternational trade. Incoterms 2000 take account of therecent spread of customs-free zones, the increased use ofelectronic communications in business transactions, andchanges in transport practices. Incoterms 2000 offer asimpler and clearer presentation of the 13 definitions, allof which have been revised.

    6. Incoterms 2000 has been adopted by the ICC with adate of entry into force on 1 January 2000. It is availablefrom ICC as publication no. 560.

    3Report of the United Nations Commission on International Trade Lawon the work of its twenty-fifth session, Official Records of the GeneralAssembly, Forty-seventh Session, (Supplement No.17 (A/47/17), paras. 160and 161.


    Letter of Ms. Maria Livanos Cattaui, Secretar-General of theInternational Chamber of Commerce

    I am writing to request endorsement of Incoterms 2000the ICC official rules for the interpre-tation of trade termsby the United Nations Commission on International Trade Law.

    Incoterms 2000 have been released in September 1999 under ICC publication reference number560 and have entered into force on 1 January 2000.

    Incoterms 2000 are already used in countless commercial sales contracts. Incoterms are contrac-tual terms, the incorporation of which in sales contracts usefully complements the provisions of theUnited Nations Convention on Contracts for the International Sale of Goods and reduces the riskof misunderstanding that could lead to legal complications.

    This text of Incoterms 2000 is the result of a very comprehensive consultation processin fact,Incoterms 2000 are based on the largest survey among business ever conducted in the history ofIncoterms. We are therefore confident that the 13 new Incoterms reflect common commercialpractice and respond to a business need for a global standard for the interpretation of trade terms.

    Although the only authoritative text of Incoterms 2000 is the English one, ICC has decided tosubmit Incoterms 2000 to UNCITRAL in the six United Nations official languages. Please note,however, that in case of discrepancies between the various texts, only the English text should beconsidered as original, all other texts being translations.

    ICC trusts that UNCITRAL will appreciate the effort made by ICC to facilitate internationaltrade and to involve all interested parties in the dissemination of legal rules that have proven toreflect the needs of modern commercial transactions. As such, we hope that UNCITRAL willrespond favourably to this formal request for endorsement of Incoterms 2000.

    Therefore, as with the previous version of this authoritative legal standard, ICC would like torequest formal endorsement of Incoterms by UNCITRAL.

  • Part Two. Studies and reports on specific subjects 601



    Entry into force 1 January 2000

    Copyright 1999International Chamber of Commerce

    All rights reserved. No part of this work may be reproduced or copied in any form or by anymeansgraphic, electronic or mechanical, including photocopying, recording, taping or informa-tion retrieval systemswithout written permission of ICC Publishing S.A.



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