Sturrock

New Incoterms®* 2010

The South African Association of Freight Forwarders has reminded it members about a further revision of Incoterms®  (International Commercial Terms) which have been covered in FIATA's e-Flash of July 2010 and which is repeated hereunder for the benefit of our readers:
 
NEW INCOTERMS ®* 2010
 
Excerpt from the FIATA E-Flash No. 10 - July 2010

The text of the INCOTERMS®  2010 rules has been finalised, but not yet approved. This is expected to be done by the ICC Executive in September 2010.
 
For a better understanding of what is to be expected, we quote from the ICC-
"When they were first introduced in 1936, the Incoterms® rules caused a sensation in the international business world. Representing a radically new concept in an industry then regulated by local rules of law, Incoterms rules were the first attempt to bring coherence to a commercial and judicial system that diverged widely from one country to another, thereby becoming a precursor of what has become known as globalization.
 
On 1 January 2011 a comprehensive revision of ICC's Incoterms rules applying to billions of dollars of business transactions will come into effect, a major step in helping international trade professionals ensure legal certainty and save both time and money.  The new revision, the first in a decade, reflects the profound changes that have taken place in global trade since 2000.

These include the importance cargo security has taken for many countries and the 2004 revision of the United States' Uniform Commercial Code, which resulted in a deletion of the former US shipment and delivery terms. The revised Incoterms rules also reflect the adoption in 2009 by insurance markets of the revised Institute Cargo Clauses (LMA/IUA) (2009).
 
The new rules have been developed to take into account these changes as well as other trends in international commercial practices. The onward march of containerization and point-to-point deliveries, for example, persuaded ICC to introduce two new "Delivered" terms. Incoterms® rules have been clustered more clearly under two groups - those appropriate only for maritime transport and those appropriate for sale contracts where any mode or modes of transport are used. 

The result is a set of clearer, more precise and more comprehensive rules adapted for the 21st century that offer increased legal certainty in sales transactions between and within countries as well as within customs-free blocks. The rules will help traders avoid misunderstandings by clarifying the costs, risks, and responsibilities of both buyers and sellers, making it essential for professionals in international trade to clearly understand the new rules."

*) 'Incoterms' is a registered trademark of the International Chamber of Commerce, registered in several countries