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6

The Incoterms® 2010 rules provide for information duties relating

to insurance in articles A3/B3, which deal with contracts of carriage and

insurance.

v) Security related clearances

ICC paid attention to the heightened concern about security in the

movement of goods, requiring verification that the goods do not pose a threat

to life or property for reasons other than their inherent nature in the new

version of Incoterms® 2010

1

. Therefore, ICC have allocated obligations

between the buyer and seller to obtain or to render assistance in obtaining

security-related clearances, such as chain-of-custody information, in

articles A2/B2 and A10/B10 of various Incoterms rules.

vi) Terminal Handling Charges

The Incoterms® 2010 rules seek to avoid multiple payments of

terminal handling charges by the buyer. Under Incoterms 2000 CPT, CIP,

CFR, CIF, DAT, DAP, and DDP, the seller must make arrangements for the

carriage of the goods to the agreed destination. While the freight is paid by

the seller, it is actually paid

for

by the buyer as freight costs are normally

included by the seller in the total selling price.

The carriage costs will sometimes include the costs of handling and

moving the goods within port or container terminal facilities and the carrier

or terminal operator may well charge these costs to the buyer who receives

the goods.

In these circumstances, the buyer would want to avoid paying for the

same service twice: once to the seller as part of the total selling price and

once independently to the carrier or the terminal operator. The Incoterms®

2010 clearly allocate terminal handling costs in articles A6/B6 of the

relevant Incoterms rules.

vii) String Sales

During the sale of commodities, goods in subject are frequently sold

several times during transit “down a string”. ICC notes that a seller in the

middle of the string does not “ship” the goods because these have already

1 Incoterms 2010, p. 8.