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Showing posts from March, 2011

Five Quick Facts About Incoterms 2010

Incoterms 2010 have been effective since December 2010. Contracting parties need to familiarize themselves with the changes made from Incoterms 2000. While some of the changes are seemingly minor, others are more substantial. There are essentially five areas where the changes to the rules have been shown themselves to be important to my clients:

1. Four terms (DAF, DDU, DEQ, DES) have been eliminated and have been replaced by two new rules: Delivered at Place (DAP) and Delivered at Terminal (DAT). The two new terms were intended to allow the parties some flexibility as to the place where seller's obligations is complete when choosing the "D" terms.

2. Each of the Incoterms rules now allocates parties' responsibility to obtain or provide information for security-related clearances. Each rule also allocates responsibility for terminal handling charges, in an attempt to elimiate double-charges for those items.

3. The parties' obligations to provide contract document…