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I NTERNAT I ONAL COMMERC I AL LAW
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“E” Group consisting of “Ex Works: EXW”,
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“F” Group consisting of
“FCA, FAS and FOB”,
•
“C” Group consisting of
“CFR, CIF, CPT and CIP”, and
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“D” Group consisting of “DAF, DES, DEQ, DDU and DDP”.
Incoterms® 2010 prefers a completely different distinction and a
classification system based on modes of transport each Incoterms could be
used for. Under the new classification, there are two groups as;
•
Group 1: Rules for any mode or modes of transport consisting of
EXW, FCA, CPT, CIP, DAT, DAP and DDP; and
•
Group 2: Rules for sea and inland waterway transport consisting
of FAS, FOB, CFR and CIF.
The first group includes the seven Incoterms® 2010 rules that can
be used irrespective of the mode of transport selected and irrespective of
whether one or more than one mode of transport is employed.
In the second group, the point of delivery and the place to which the
goods are carried to the buyer are
both
ports. Under FOB, CFR and CIF all
mention of the ship’s rail as the point of delivery in the previous versions
of Incoterms has been omitted in preference for the goods being delivered
when they are “on board” of the vessel. ICC states that this approach more
closely reflects modern commercial reality and avoids the rather outdated
image of the risk swinging to and across an imaginary perpendicular line.
iii) Electronic Communication
Incoterms® 2010 grant electronic means of communication the same
effect as paper communication, as long as the parties so agree or where
customary under Articles A1/B1 of each Incoterms. It is emphasized
by ICC that this formulation facilitates the evolution of new electronic
procedures throughout the lifetime of the Incoterms® 2010 rules.
iv) Insurance Cover
There are only two terms which provide an insurance obligation for
the parties. CIP and CIF refer to Institute Cargo Clauses as to the coverage
of the insurance. Institute Cargo Clauses were subject to a revision which
started on 2006 and finalized on 2009. The Incoterms® 2010 rules take
account of the Institute Cargo Clauses 2009.