Incoterms 2010 came into force on January 1, 2011.

The Incoterms rules are a group of internationally recognised commercial terms used in international and domestic contracts for the sale of goods.

Incoterms 2010, the eight edition of the Rules, which was released by the International Chamber of Commerce in September 2010, became effective as of January 1, 2011. In the new edition, the number of Incoterms has been reduced from 13 to 11. Also the rules have been split into two categories based on the mode of transport. 7 rules can be used for any mode of transport, and the other 4 rules can be used solely for maritime transport.

RULES FOR ANY MODE OR MODES OF TRANSPORT

EXW ex works

FCA free carrier

CPT carriage paid to

CIP carriage and insurance paid to

DAT delivered at terminal

DAP delivered at place

DDP delivered duty paid

RULES FOR SEA AND INLAND WATERWAY TRANSPORT

FAS free alongside ship

FOB free on board

CFR cost and freight

CIF cost insurance and freight

The Incoterms 2000 rules DAF (Delivered at Frontier), DES (Delivered Ex Ship), DEQ (Delivered Ex Quay) and DDU (Delivered Duty Unpaid) have been replaced with the following three rules, two of which are new: DAT (Delivered at Terminal), DAP (Delivered at Place), and DDP (Delivered Duty Paid). The new terms apply to all modes of transport.

The essential difference between Incoterm DAT and Incoterm DAP is that in the latter delivery at the place of destination takes place while the goods are still loaded on the arriving mode of transport and in the former, have been unloaded from the transport.

In Incoterm DAT, the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal or other place at the named port or place of destination. Old Incoterm DEQ required the goods to be placed on the quay at the named port of destination.

In Incoterm DAP, the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. This is exactly what the old Incoterm DDU stipulated.

Incoterm DES required delivery on board the ship and the Incoterm DAF required delivery on mode of transport at the frontier. Both these scenarios now fall within Incoterm DAP because the mode of transport for Incoterm DAP can be a ship (or other means of transport) and the place of destination can be a place on the frontier.