Incoterms are international commercial rules that divide costs, risk and responsibilities between sellers and buyers.
Companies that buy or sell internationally need to be familiar with the updated changes.
The purpose of incoterms is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade.
The 2010 rewrite reduces the 2000 version from 13 terms to 11.
There are 2 new items
- Delivered At Terminal (DAT)
- Delivered at Place (DAP)
Which replace the terms
- Delivered At Frontier (DAF)
- Delivered Ex Ship (DES)
- Delivered Ex Quay (DEQ)
- Delivered Duty Unpaid (DDU)
The Incoterm 2010 Rules that apply to any Mode of Transport
- EXW - Ex Works
- FCA - Free Carrier
- CPT - Carriage Paid To
- CIP - Carriage and Insurance Paid To
- DAT - Delivered at Terminal (New Term)
- DAP - Delivered at Place (New Term)
- DDP - Delivered Duty Paid
The Incoterm 2010 Rules that apply to Sea and Inland Waterway Transport
- FAS - Free Alongside Ship
- FOB - Free On Board
- CFR - Cost and Freight
- CIF - Cost Insurance and Freight
The debut of the DAP term accommodates both domestic and international transactions and replaces the more limited terms DAF, DES and DDU. The multimodal term DAT replaces the term DEQ which was only available for ocean freight.
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