The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) that are widely used in international, as well as national and community-based commercial transactions or procurement processes.
Its main purpose is to provide international rules to construe most used trade terms in foreign trade as regards to parties’ obligations to a sale agreement for goods’ delivery, apportionment of costs and risks associated with the said goods, as well as export and import formalities.
Since 1st January 2011, Incoterms 2000 has been replaced by Incoterms 2010. The main changes concern the following:
Disappearance of Incoterms DAF / DES / DEQ / DDU ;
Loss of the notion of “railing gateway”;
With the rise of terrorism, checks on the security of goods will be clarified, mainly regarding the taking over of formalities and related costs;
Creation of two new Incoterms namely DAT (Delivered At Terminal) and DAP (Delivered At Place). The former replaces DEQ and the latter is set for the terms DAF / DES / DDU.
Consequently, there are now 11 Incoterms distributed according to whether they are applicable to all means of transportation and for waterway and / or maritime transportation.