International Commercial Law - Incoterms 2010

Incoterms 2010

Incoterms 2010 refers to the newest collection of essential international commercial and trade terms. The terms were devised in recognition of non-uniform standard trade usages between various States. When incorporated into a sale contract, the Incoterm code provides a detailed interpretation of rights and obligations between parties.

Any given Incoterm, in most jurisdictions, will not be incorporated into a contract without express or implied reference to it being an Incoterm. They are standardised and published, available for incorporation into international sale contracts at the parties’ discretion. Parties should specifically refer to the Incoterms in the sale contract to indicate incorporation. The International Chamber of Commerce (ICC) is responsible for revising Incoterms periodically to reflect changing practices in international trade.

The Incoterms are classified in 4 different classes:

• Ex (ExW);
• Free (FOB, FCA);
• Cost (CPT, CIP);
• Delivery (DAP, DAT, DDP).