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Incoterms 2010
The Incoterms rules or International Commercial terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) widely used in international commercial transactions. A series of three-letter trade terms related to common sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods. The Incoterms rules are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade. They are intended to reduce or remove altogether uncertainties arising from different interpretation of the rules in different countries.
Incoterms 2010
The eighth published set of pre-defined terms, Incoterms 2010 defines 11 rules, reducing the 13 used in Incoterms 2000 by introducing two new rules ("Delivered at Terminal", DAT; "Delivered at Place", DAP) that replace four rules of the prior version ("Delivered at Frontier", DAF; "Delivered Ex Ship", DES; "Delivered Ex Quay", DEQ; "Delivered Duty Unpaid", DDU).
Rules for Any Mode(s) of Transport
The seven rules defined by Incoterms 2010 for any mode(s) of transportation are:
EXW - Ex Works (named place of delivery)
FCA - Free Carrier (named place of delivery)
CPT - Carriage Paid To (named place of destination)
CIP - Carriage and Insurance Paid to (named place of destination)
DAT – Delivered at Terminal (named terminal at port or place of destination)
DAP – Delivered at Place (named place of destination)
DDP – Delivered Duty Paid (named place of destination)
Rules for Sea and Inland Waterway Transport
The four rules defined by Incoterms 2010 for international trade where transportation is entirely conducted by water are:
FAS - Free Alongside Ship (named port of shipment)
FOB – Free on Board (named port of shipment)
CFR - Cost and Freight (named port of destination)
CIF - Cost, Insurance and Freight (named port of destination)
Previous terms eliminated from Incoterms 2000
DAF – Delivered At Frontier (named place of delivery)
DES – Delivered Ex Ship (named port of delivery)
DEQ – Delivered Ex Quay (named port of delivery)
DDU – Delivered Duty Unpaid (named place of destination)
