Incoterms 2010 Take Effect January 1st 2011
ICC Bookstore Video Presentation
Incoterms® 2010, rules by the International Chamber of Commerce (ICC)explaining standard terms that are used in contracts for the sale of goods, will be launched in September and come into effect on January 1, 2011. Shippers, Importers, credit executives and others involved in international trade need to familiarize themselves with imminent changes to the global rules governing terminology used in international sales contracts. Incoterms 2010 essentially warns the buyers and sellers to clearly spell out all details in the sales contract and not to rely solely on the Terms of Sale.
Since the last revision, Incoterms 2000, there have been a number of changes in both global and domestic trade, this revision addresses those changes.
In contrast to the previous four classes, E,F,C and D, Incoterms will now be separated into 2 groups, those applicable to all modes of transport and those only applicable to sea and inland waterway transport.
There will now be a total of 11 terms instead of 13, with 2 new additions, DAP and DAT and 4 deletions.
Incoterms 2010 applicable for all modes of transport:
EXW : ex works
FCA : free carrier
CPT : carriage paid to
CIP : carriage and insurance paid to
DAT : delivered at terminal - NEW!
DAP : delivered at place - NEW!
DDP : delivered duty paid
Incoterms 2010 only applicable for sea and inland waterway transport:
FAS : free alongside ship
FOB : free on board
CFR : cost and freight
CIF : cost, insurance and freight