Tuesday, July 13, 2010

Welcome DAP & DAT!

After much work by the ICC appointed experts, Incoterms® 2010 is scheduled to be launched in September and go into effect on January 1, 2011. Used in international and domestic contracts for the sale of goods, Incoterms help parties avoid misunderstandings by clearly identifying the obligations of the buyer and seller.

Although the book has not been officially released, a few details have been provided for the public. The 2010 edition will include 11 terms instead of the 13 in the previous edition. We welcome two new terms to the list of 11, DAT and DAP. We say goodbye to DAF, DES, DEQ and DDU. In addition to the 11 rules, Incoterms® 2010 includes:

· Information on security-related responsibilities for shipments.
· Guidance for the use of Incoterms in domestic trade.
· Notes and graphics to assist users in selecting the correct rule for the transaction.
· Information about the use of electronic procedures.

The Incoterms are arranged in two categories as follows:

Any Mode of Transport
CIP - Carriage and Insurance Paid
CPT - Carriage Paid To
DAP - Delivered At Place
DAT - Delivered At Terminal
DDP - Delivered Duty Paid
EXW - Ex Works
FCA - Free Carrier

Sea and Inland Waterway Transport Only
CFR - Cost and Freight
CIF - Cost, Insurance and Freight
FAS - Free Alongside Ship
FOB - Free On Board

Starting in late September 2010, the U.S. Council for International Business will offer a series of one-day seminars to familiarize U.S businesses with the new rules. Classes will be taught by Incoterms expert and appointed member of the revision team, Frank Reynolds. Attendees will receive a copy of the official ICC Incoterms® 2010 book and a companion book, Incoterms® for Americans®, as well as comprehensive seminar notes. Click
HERE to view the seminar.

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