Incoterms are a series of international trade terms developed by the International Chamber of Commerce (ICC) that define both the roles of buyers and sellers in a commercial transaction and when transfer of risk takes place. To keep up with the rapid expansion of world trade and globalization, the Incoterms rules are revised about once a decade. Since the last revision in 2000, much has changed in global trade and the 2010 revision will take into account issues such as developments in cargo security and the need to replace paper documents with electronic ones. Incoterms 2010 will come into effect on January 1, 2011.
The 2010 edition will include 11 terms instead of the 13 in Incoterms 2000. The major changes are as follows:
1.The following terms from Incoterms 2000 have been deleted from the list: DES (Delivered Ex Ship), DEQ (Delivered Ex Quay), DDU (Delivered Duty Unpaid) and DAF (Delivered at Frontier).
2.They have been replaced by two new terms: DAP (Delivered at Place) and DAT (Delivered at Terminal). Both terms may be used for both sea and air transport.
Delivered at Place means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination.
Delivered at Terminal means that the seller delivers when the goods are unloaded from the arriving means of transport and placed at the disposal of the seller at a named port or place of destination. Terminal includes any place, whether covered or not, and includes quay, warehouse, container yard, road, rail or cargo terminal.
3.Whilst Incoterms 2000 had four categories, Incoterms 2010 only has two categories as follows:
CIP - Carriage and Insurance Paid
CPT - Carriage Paid To
DAP - Delivered At Place
DAT - Delivered At Terminal
DDP - Delivered Duty Paid
EXW - Ex Works
FCA - Free Carrier
CFR - Cost and Freight
CIF - Cost, Insurance and Freight
FAS - Free Alongside Ship
FOB - Free On Board
If you need any further information please contact one of the Customs brokers or consultants at your local Winstar office.