Incoterms® 2010… Be Prepared for the Changes
On January 1, 2011, Incoterms® 2010 will replace Incoterms® 2000 as the new authoritative text for determining how costs, risks, and other obligations are allocated to the two parties (seller/buyer) in a transaction regarding the delivery of goods. No one, except of course the International Chamber of Commerce (ICC) which issues these rules, knows all the details regarding Incoterms ® 2010 until the book is officially released around the end of September, 2010. However, the ICC has shared some highlights…
- Modifications
regarding obligations, risk transfer, and cost sharing have been made to the
nine Incoterms carried forward from Incoterms® 2010 - Four Incoterms® 2000 rules have
been eliminated.
- DDU, DEQ, DES, and DAF
- DDU, DEQ, DES, and DAF
- Two new rules have been added.
- DAP: Delivered At Place and DAT:
Delivered At Terminal
- DAP: Delivered At Place and DAT:
Delivered At Terminal
- The new rules are divided into
two sections.
- ALL MODES OF TRANSPORTATION:
- EXW: Ex Works
- FCA: Free Carrier
- CPT: Carriage Paid To
- CIP: Carriage and Insurance Paid
- DAT: Delivered At Terminal
- DAP: Delivered At Place
- DDP: Delivered Duty Paid
- SEA AND INLAND WATERWAY TRANSPORTATION:
- FAS: Free Alongside Ship
- FOB: Free On Board
- CFR: Cost and Freight
- CIF: Cost, Insurance, and Freight
It is vital for you to fully understand the changes to Incoterms® for you to negotiate the best deal. The best and most efficient way to do this is through one of our one-day Incoterms® 2010 training seminars. For more information, check our website, download a .pdf brochure, or call 800-631-3098.
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