Win Global Partners attended Incoterms® 2010 seminar. The goal of the seminar was to discuss the most important changes in Incoterms® 2010 compared to Incoterms® 2000. Win Global Partners specialists highlighted following important changes and are glad to share them with you.
First of all, there are two classes of terms – those which are applicable to marine transport only and those which are applicable to any mode of transportation. For example, FOB (Free On Board), one of the most popular term is in the first category.
Secondly, there is a sufficient change in D group of terms. Starting January 1st, 2011, DES (Delivered Ex Ship), DEQ (Delivered Ex Quay Duty Unpaid), DDU (Delivered Duty Unpaid) and DAF (Delivered At Frontier) will be replaced by DAT (Delivered at Terminal) and DAP (Delivered at Place).
In Incoterms® 2010 the International Chamber of Commerce reflected the growing global economic integration as new terms can be applicable to the internal trade, not only to the international trade as it was before.
Rising security costs in the international shipments are now defined in Incoterms® 2010 as a separate category of costs like insurance costs. Parties are welcome to negotiate who will cover those costs.
The last, but not least important change is that the place of transferring risk now has to be as precise as possible. For example, former DDP Halifax (Delivered Duty Paid) now should be indicated as DDP 3299 John St., Halifax, NS, Canada. The purpose of this precision is to make sure that a correct term has been chosen and to avoid miscommunication. After all, this is a strong argument for an international trade arbiter.
For more information about Incoterms® 2010 visit http://www.iccwbo.org/incoterms/id3042/index.html.