Incoterms 2010 (English: Incoterms, International commerce terms) are international rules for the interpretation of the most widely used trade terms in foreign trade. International trade terms are the standard terms of an international sales contract, which are defined in advance in an internationally recognized document and come into force on January 1, 2011 [1].
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 Incoterms 2010 reflect the current trends in international trade that have developed since the last edition of the Rules was issued in 2000.
The total number of terms has been reduced from 13 to 11. 2 new terms have also been added to the Rules: DAT (Delivery at Terminal) and DAP (Delivery at Point). In addition, the new version contains a small guide to each term to help users of the Incoterms 2010 to choose the right term.
Each term of Incoterms 2010 is an abbreviation of three letters.
The terms can be divided into 4 groups:
Group E – Place of Departure:
EXW. Ex Works: goods from the seller’s warehouse.
Group F – Main Carriage Unpaid: The main transportation is not paid:
FCA. Free Carrier (specified location): the goods are delivered to the customer’s carrier.
FAS. Free Alongside Ship: the goods are delivered to the customer’s ship.
FOB. Free On Board: the goods are loaded onto the customer’s ship.
Group C – Main Carriage Paid: the main transportation is paid:
CFR. Cost and Freight (the port of destination is indicated): the goods are delivered to the customer’s port (without unloading).
CIF. Cost, Insurance and Freight (the port of destination is indicated): the goods are insured and delivered to the customer’s port (without unloading).
CPT. Carriage Paid To: the goods are delivered to the customer’s carrier at the specified destination
CIP. Carriage and Insurance Paid To: 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 place of destination
DAT (Delivered at Terminal) – Delivery at the terminal. Export payments are borne by the seller, and import payments by the buyer.The terminal is located at the border, you need to specify the name of the terminal.
DDP. Delivered Duty Paid (the destination is indicated) – 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.