Thesis:

The effect of Incoterms (2020) on facilitating international trade and the challenges of its implementation in Iran

Despite the existence of advanced technologies across all sectors, the fundamental element that must play a decisive role in regulating the public order of society remains the codified legal framework capable of exercising control over such technologies. In the realm of international trade, the paramount necessity is the existence of uniform and accessible legal rules, enabling all traders and commercial entities operating in this field to be familiar with them and to conduct their commercial transactions accordingly. In pursuit of this objective, the International Chamber of Commerce (ICC) has promulgated a unified set of International Commercial Terms—commonly known as Incoterms—designed to accelerate and facilitate cross-border trade. These terms function as a universal commercial language, providing a standardized legal and operational framework for traders within contractual arrangements. It is therefore essential to examine the key components embedded in these terms that contribute to the facilitation of international trade. Such components include: the determination of the point of delivery, the identification of the moment of risk transfer, and the allocation of responsibilities and costs—such as freight charges, insurance premiums, and related expenses—between the contracting parties. By offering this pre-structured framework, Incoterms serve as one of the most significant instruments for streamlining and harmonizing international trade practices. Nevertheless, in certain cases, the application of these rules within the Iranian legal environment faces challenges due to inconsistencies with domestic legislation. Such conflicts may arise, for example, when the parties agree on a specific place of delivery that is recognized differently under national Iranian law versus the applicable Incoterms rule. Addressing such challenges requires careful attention to the chronological order and hierarchy of the parties’ contractual agreements.

Keywords: Incoterms 2020, Principles of International Trade, International Transportation, Commercial Risk Management, Iranian Trade Law, Economic Sanctions, Logistical Infrastructure