Incoterms Concepts 2010

In: Business and Management

Submitted By tfprediger
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INCOTERMS – INternational COmmercial TERMS 2010

1. Introduction
Incoterms are conditions of sale that define minimum rights and obligations for buyer and seller in terms of logistics costs and risks. They consider aspects as: * freight * insurance * customs clearance * handling in terminals * etc. ..
* are expressed by three-letter acronym * must desirably be included in international sale contracts * have legal force if used correctly in sales contracts

2. History
The Incoterms rules genesis can be traced to 1921, with the formation of the idea by the International Chamber of Commerce.
In 1936, the first set of the Incoterms rules was published. The first set remained in use for almost 20 years, before the second publication in 1953. Additional amendments and expansions followed in 1967, 1976, 1980, 1990, and 2000.
The 8th and current version of the Incoterms rules—Incoterms 2010—was published on January 1, 2011.
3. 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).
In the prior version, the rules were divided into four categories, but the 11 pre-defined terms of Incoterms 2010 are subdivided into two categories based only on method of delivery. The larger group of seven rules applies regardless of the method of transport, with the smaller group of four being applicable only to sales that solely involve transportation over water.
Any Mode of Transport
The 7 rules defined by Incoterms 2010 for any mode(s) of transportation are:-
EXW – Ex Works (named place of delivery)
The seller…...

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