EVOLUTION OF INCOTERMS Incoterms 2010 A summary of the principal changes to Incoterms 2000

MAJOR CHANGE Four terms have been excluded: DAF – DELIVERED AT FRONTIER DES – DELIVERED EX SHIP DEQ – DELIVERED EX QUAY DDU – DELIVERED DUTY UNPAID Replaced by two new ones; DAP – DELIVERED AT PLACE DAT – DELIVERED AR TERMINAL

OVERVIEW Incoterms® 2000 (13 terms) Departure: 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 AND INSURANCE PAID TO Arrival: DAF – DELIVERED AT FRONTIER DES – DELIVERED EX SHIP DEQ – DELIVERED EX QUAY DDU – DELIVERED DUTY UNPAID DDP – DELIVERED DUTY PAID Incoterms® 2010 (11 terms) All modes of transport: CIP – CARRIAGE AND INSURANCE PAID TO CPT – CARRIAGE PAID TO DAP – DELIVERED AT PLACE DAT – DELIVERED AT TERMINAL DDP – DELIVERED DUTY PAID EXW – EX WORKS FCA - FREE CARRIER See and inland waterways: CFR - COST AND FREIGHT CIF – COST, INSURANCE AND FREIGHT FAS – FREE ALONGSIDE SHIP FOB – FREE ON BOARD

The Two New Terms – in Detail DELIVERED AT PLACE (DAP) The goods are handed over once they have been placed at the disposal of the buyer ready for unloading at the specified place. Specify the exact point of delivery within the exact place. The seller bears the risk until this point and should make sure that the contract of carriage is formulated precisely. This term requires the seller to clear the goods for export, if applicable. However, no such requirement exists for the clearance of the goods for import. If the seller is intended to clear the goods for import, pay any import duty and carry out any import customs formalities, then use DDP instead. If the seller has any costs under the contract of carriage associated with unloading at the place of destination, the seller can not recover such costs from the buyer unless so agreed. DELIVERED AT TERMINAL (DAT) The goods are handed over once they are unloaded and placed at the disposal of the buyer at a specified terminal, meaning for example a quay, warehouse, container yard or road, rail or air cargo terminal. Specify the exact terminal of delivery and/or an exact point within that terminal. The seller bears the risk until that point and should make sure that the contract of carriage is formulated precisely. This term requires the seller to clear the goods for export, if applicable. However, no such requirement exists for the clearance of the goods for import. If the seller is intended to bear the risks and costs of transporting and handling the goods from the terminal to a different kind of place, then DAP or DDP should be used.

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