Incoterms

As of January 1, 2011, the updated version of the international commercial terms, Incoterms 2010, goes into effect. Now in its eighth edition, the revised list contains a series of changes, including a reduction in the number of terms from 13 to 11.

The ICC hasn't made modifications to the Incoterms since 2000. Click to view the current 2010 Incoterms spreadsheet.

WHAT HAS CHANGED?

DAF (Delivered at Frontier), DES (Delivered Ex Ship), DEQ (Delivered Ex Quay), and DDU (Delivered Duty Unpaid) designations have been ELIMINATED

DAT (Delivered at Terminal) and DAP (Delivered at Place) have been INTRODUCED to replace the 4 terms listed above.

Delivered at Place means the shipper is responsible up to the place of destination for unloading arriving on any mode. The shipper assumes responsibility in bringing the goods to the named place. DAP requires the shipper to clear the goods for export, where applicable. The shipper has no obligation to clear the goods for import, pay any import duty or carry out import customs procedures.

The term Delivered at Terminal is used no matter the mode selected and may also be used where more than one mode of transport is incorporated.

The shipper is responsible for unloading the goods upon arrival and placed at the named terminal, port or place of destination within an agreed period. The shipper is also responsible for bringing the goods to and unloading at the terminal of the named port or place of destination.

The term terminal includes warehouse, container yard or road, rail or air cargo terminal.

The updated Incoterms (link the spreadsheet here too on the word Incoterms) are intended to better take into account and reflect the roles cargo security, supply chain collaboration and electronic data interchange now play in international trade.

The 11 Incoterms have been reclassified into two categories:

    1.       Rules for any mode or modes of transport.

    2.       Rules for sea and inland waterway transport

View the complete Incoterms update in the Regulations Section of AIT’s eNewsletter.

For questions or further information about Incoterms, please contact your local AIT office.

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