Incoterms 1936
Incoterms 1936 was the first edition of the International Chamber of Commerce's standard trade terms, defining what seller and buyer must do under common expressions such as FOB and CIF.
What it requires
Published by the ICC in 1936, the rules defined a set of trade terms, FAS, FOB, C&F, CIF, Ex Ship and Ex Quay, and the seller's and buyer's duties for delivery, risk transfer, costs and documents under each. Use was voluntary, so the terms applied only when a contract incorporated them. The ICC revised them in 1953, 1967, 1976, 1980, 1990, 2000, 2010 and 2020. The 1936 edition is no longer used in practice, and Incoterms 2020 is the current edition.
Why it matters
Incoterms 1936 established that a short code in a sales contract can allocate freight cost and risk between buyer and seller, which every importer still relies on. Before then, terms like FOB meant different things in different ports, causing disputes. For example, when a brand buys goods FOB Ningbo today, both parties understand the seller delivers the goods on board the vessel and risk passes then, an understanding that began with the 1936 standardization. Contracts should always name the edition used, because meanings have changed over time.
Related laws
Sources
- Incoterms rules history, ICC iccwbo.org
Not legal advice.