Incoterms-2010 (Incoterms, International commerce terms) are international rules for the interpretation of the most widely used trade terms in the field of foreign trade. International trade terms are the standard terms of an international sales contract, which are defined in advance in an internationally recognized document, effective from January 1, 2011.
On September 16, 2010, the International Chamber of Commerce announced the release of a new edition on the use of national and international trade terms. The Rules of Incoterms 2010 reflect the current trends in the development of international trade, which have developed since the release of the last edition of the Rules in 2000.
The total number of terms was reduced from 13 to 11. Also, 2 new terms appeared in the Rules: DAT (Delivery at Terminal) and DAP (Delivery at Point) replaced the rules DAF, DES, DEQ, DDU in Incoterms 2000 (Incoterms 2000). In addition, the new version includes a short guide to each term to help users of the Incoterms 2010 Rules select the right term.
Each term of Incoterms 2010 (Incoterms 2010) is an abbreviation of three letters.
Terms can be divided into 4 groups:
- Group E — Place of departure (Departure):
- EXW. Ex Works (specified place): goods from the seller’s warehouse.
- Group F — Main Carriage Unpaid:
- FCA. Free Carrier (specified location): the goods are delivered to the customer’s carrier.
- FAS. Free Alongside Ship (specified port of loading): the product is delivered to the customer’s ship.
- FOB. Free On Board (indicated port of loading): the goods are loaded onto the customer’s ship.
- Group C – Main Carriage Paid:
- CFR. Cost and Freight (specified port of destination): the goods are delivered to the customer’s port (without unloading).
- CIF. Cost, Insurance and Freight (designated port of destination): the goods are insured and delivered to the customer’s port (without unloading).
- CPT. Carriage Paid To (specified destination): the goods are delivered to the customer’s carrier at the specified destination.
- CIP. Carriage and Insurance Paid to (specified destination): the goods are insured and delivered to the customer’s carrier at the specified destination.
- Group D – Delivery (Arrival):
- DAP (Delivered at Place): delivery at the destination.
- DAT (Delivered at Terminal): delivery at the terminal. Export payments are the responsibility of the seller, and import payments are the responsibility of the buyer. The terminal is located on the border, you need to specify the name of the terminal.
- DDP. Delivered Duty Paid (destination specified): the goods are delivered to the customer, cleared of duties and risks.
DEQ (Delivered Ex Quay), DES (Delivered Ex Ship), DDU, DAF were excluded from Incoterms 2010.