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2. Incoterms® 2010
a) Need for Changes
It is stated under the Foreword of Incoterms® 2010, since the creation
of the Incoterms® rules by ICC in 1936, this globally accepted contractual
standard has been regularly updated to keep pace with the development of
international trade.
It is also stated that the continued spread of customs-free zones, the
increased use of electronic communications in business transactions, the
heightened concern about security in the movement of goods and changes
in transport practices required the ICC to revise the Incoterms® 2000.
Moreover, the urge of the traders to commonly use Incoterms rules
for purely domestic sale contracts within the boundaries of countries or
trade blocks like EU and the greater willingness in the United States to
use Incoterms rules in domestic trade rather than the former Uniform
Commercial Code shipment and delivery terms also motivated ICC to
revise Incoterms in a way that would enable the trade terms to be used also
on domestic basis in addition to its previous use on international basis.
b) Main Novelties
i) New Incoterms Rules
First of all, the number of Incoterms rules has been reduced to 11 from 13.
Two new rules that may be used irrespective of the agreed mode of
transport being namely (1) DAT (Delivered at Terminal) and (2) DAP
(Delivered at Place) replace the Incoterms 2000 rules DAF, DES, DEQ
and DDU. Both of the new rules provide for delivery to occur at a named
destination. In DAT, the delivery occurs at the buyer’s disposal unloaded
from the arriving vehicle. In DAP, it occurs at the buyer’s disposal, ready
for unloading. These new rules, like their predecessors, are “delivered”,
with the seller bearing all the costs, other than those related to import
clearance, where applicable, and risks involved in bringing the goods to
the named place of destination.
ii) Classification of Incoterms
Under the previous version of 1990 and 2000 of Incoterms, the rules
were classified under four groups as;