INCOTERMS 2010

What are INCOTERMS : Terms internationally accepted that provide rules for trading.

International Commercial Terms (INCOTERMS) Buying or selling INFORMATION based on :

1.

Departure point 2.

3. Main Carriage Unpaid Main Carriage Paid 4. Arrival or Destination Point

•

INCOTERMS Update

The International Chamber of Commerce (ICC) had completed the eighth revision of the International Commercial Terms (Incoterms). The new version called Incoterms 2010 started to apply from January 1 st , 2011.

So what are the changes to Incoterms 2010 • • Removed terms:

DAF, DES, DEQ and DDU

• • New Incoterms:

DAT and DAP

1.

2.

3. 4.

Departure point :

EXW (ex works)

Main Carriage Unpaid:

FCA (free carrier) FAS (free alongside ship)

FOB (free on board) Main Carriage Paid:

CFR (cost and freight)

CIF (cost, insurance and freight)

CPT (carriage paid to) CIP (carriage insurance paid to)

Arrival or Destination Port

DAP (delivered at place) DAT (delivered at terminal) DDP (delivered duty paid)

-

DAT (Delivered at Terminal… named place destination)

- This means the seller delivers (or meets their obligation) when the goods are unloaded from the arriving means of transportation and are placed at the disposal of the buyer at a named terminal at the named port or place of destination. Terminal includes any place, such as quay, warehouse, container yard or road, rail or air cargo terminal.

- The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.

If the seller should bear the risks and costs involved in transporting and handling the goods from the terminal to another place, then DAP or DDP should be used DAT requires the seller to clear the goods for export, but has no obligation to clear the goods for import or pay any duty or carry out import customs formalities

DAP (Delivered at Place… named place destination)

- The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport, ready for unloading at the named place of destination.

- The seller bears all risks involved with bringing the goods to the named place.

- If the seller incurs costs for unloading under its contract of carriage, it cannot recover that from the buyer unless otherwise agreed upon between the parties.

- DAP requires the seller to clear the goods for export but has no obligation to clear goods for imports, or pay duty or carry out import customs formalities.

Good Luck in your Exporting / Importing Business!

Jose Zlatar MBA

GREAT LAKES FOOD TRADING INC.

Ph. 647-722-2450 Fx. 647-722-2451

Specializing in grains and dairy products to and from South America