Incoterms are: the ICC (International Chamber of Commerce) official rules for the interpretation of trade terms applying to the contract of sale. The latest terms published in September 2010 came into force 1 January 2011. In the introduction to the earlier 2000 edition of this excellent booklet, it states: ‘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. Thus, the uncertainties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree.’
Incoterms tend to be revised and reissued every ten years, reflecting the problems that buyers and sellers have experienced over the preceding period. Older terms can be used provided the purchase contract clearly states the Incoterms year of issue.
The eleven8 2010 rules are presented in two distinct groups. Group 1 is for any mode(s) of transport, including maritime transport. Group 2 is for sea and inland waterway transport only.
1 Rules for Any Mode or Modes of Transport
|FCA||Free Carrier||Goods cleared for export|
|CPT||Carriage Paid to||FCA + Contract for carriage paid|
|CIP||Carriage and Insurance Paid to||CPT + Cost of insurance|
|DAP||Delivered at Place||All costs and risks paid for|
|DAT||Delivered at Terminal||DAP + Cost of unloading at normal point|
|DDP||Delivered Duty Paid||DAP + Paying clearance and duty|
This first ...