Legal Coverage of Foreign Trade Transactions

Currently, foreign trade transactions are instrumental in global economic cooperation. The proper formation and execution of foreign trade contracts are certainly beneficial to the economic situation in the world. However, this process might pose certain difficulties to the participants of international trade, which can be avoided if Incoterms 2010 are observed. The provisions of Incoterms 2010 are relevant and meet the requirements of foreign trade. While the Incoterms rules are characterized by amenity and usefulness, there are a number of problems in the practice of their application. The purpose of the research is to analyze the relevant issues of Incoterms application, which significantly influence foreign trade and the economic situation in certain countries. In the course of the research the general methods of scientific investigation have been used, i.e. the systematic and dialectic methods; the general scientific methods – induction and deduction, analysis and synthesis, proceeding from abstract to specific, etc.; a legally specific method – the formal-economic and the comparative-economic methods. The article examines Incoterms 2010 and their differences from and similarities to their predecessor – Incoterms 2000. Furthermore, the article formulates the key problems arising in relation to Incoterms 2010 application and assesses their impact on international trade in general. The research conducted has revealed that the Incoterms rules are a very efficacious regulator of the foreign trade transactions. The issues caused by their application need to be solved urgently, as they lead to letdown of foreign trade.