Incoterms 2010: ICC Rules for the Use of Domestic and International Trade Terms

Regularly incorporated into sales contracts worldwide, Incoterms defines in a set of three-letter trade terms, the risks and responsibilities of buyers and sellers in an international sales contract.

Used by large and small businesses alike, Incoterms are applied to the sales of billions of dollars of goods each year and provide businesses with the confidence and certainty to operate in unfamiliar markets and legal jurisdictions.

The new Incoterms 2010 rules, entering into force on 1 January 2011, incorporate a number of changes to keep pace with the development of international trade. Containing revised definitions and interpretation of rules to provide greater clarity and precision, Incoterms 2010 includes:-

• Extensive guidance notes explaining the fundamentals of each Incoterms rule, such as when it should be used; when risk passes; and how costs are allocated between buyer and seller
• New classifications to help choose the most suitable rule in relation to the mode of transport
• Advice for the use of electronic procedures
• Provisions for the allocation of obligations related to security-related clearances for shipments
• Updated provisions in relation to insurance taking into account the revision of the Institute of Cargo Clauses
• Enhanced usability for domestic trade.