Get ready — Incoterms® are a changin’

Ten years after the last publication of Incoterms® 2000, the International Chamber of Commerce (ICC) is poised to issue significant revisions to these international standardized shipping terms.  Effective January 1, 2011, Incoterms® 2010 will change the landscape of international sales contracts, so US  importers (and exporters) should be prepared.

In a recent Council of Supply Chain Management Professionals (CSCMP) seminar, Dan Gardner of ATC Logistics & Electronics noted the following key revisions:

  • There are 13 official Incoterms® 2000
  • There will be only 11 official Incoterms® 2010
  • Incoterms® that will no longer be used:
    • Delivered At Frontier (DAF)
    • Delivered Ex Ship (DES)
    • Delivered Ex Quay (DEQ)
    • Delivered Duty Unpaid (DDU)
  • Incoterms® that will be added:
    • Delivered At Terminal (DAT)
    • Delivered At Place (DAP)
  • Incoterms® 2010 are now organized into 2 categories:
    • Those that are used for any mode of transport
    • Those that apply to maritime or inland waterway shipments only

As these are just an overview of changes that will occur as of January 1, 2011, importers are strongly advised to seek legal counsel about the specifics of these revisions and how they may affect sales agreements.  Additionally, importers should purchase their own copy of Incoterms® 2010 from ICC for the extensive guidance notes and other information helpful for interpreting and using the new terms.