Incoterms – international rules for the interpretation of trade terms, which define the responsibilities of the seller and buyer in the performance of foreign trade transactions and thereby reduces the risk of the parties.
Incoterms was founded by the International Chamber of Commerce in 1936. In 1953, 1967, 1976, 1980, 1990 and 2000 in the document was amended.
Incoterms 2010 will take effect on January 1st, 2011. Since the last revision, Incoterms 2000, there have been a number of changes in both global and domestic trade, this revision addresses those changes.
In contrast to the previous four classes, E,F,C and D, Incoterms will now be separated into 2 groups, those applicable to all modes of transport and those only applicable to sea and inland waterway transport.
There will now be a total of 11 terms instead of 13, with 2 new additions, DAP and DAT and 4 deletions, DAF, DDU, DEQ and DES.
Incoterms 2010 applicable for all modes of transport:
EXW : ex works
FCA : free carrier
CPT : carriage paid to
CIP : carriage and insurance paid to
DAT : delivered at terminal – NEW!
DAP : delivered at place – NEW!
DDP : delivered duty paid
Incoterms 2010 only applicable for sea and inland waterway transport:
FAS : free alongside ship
FOB : free on board
CFR : cost and freight
CIF : cost, insurance and freight