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    What Are The Main Differences Between INCOTERMS 2010 and INCOTERMS 2000?

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    Intekhab Jubraz
    Incoterms are international commercial terms developed by the International Chamber of Commerce that define responsibilities for transportation and delivery of goods between buyers and sellers. Incoterms 2010 replaced Incoterms 2000 and reduced the number of defined terms from 13 to 11 by eliminating DAF, DES, DEQ, and DDU and introducing new terms DAT and DAP. Incoterms are incorporated into sales contracts and letters of credit to clarify delivery terms, and the same Incoterms language must appear on both the letter of credit and commercial invoice to avoid discrepancies between documents.

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    What Are The Main Differences Between INCOTERMS 2010 and INCOTERMS 2000?

    Uploaded by

    Intekhab Jubraz
    46 views2 pages
    Incoterms are international commercial terms developed by the International Chamber of Commerce that define responsibilities for transportation and delivery of goods between buyers and sellers. Incoterms 2010 replaced Incoterms 2000 and reduced the number of defined terms from 13 to 11 by eliminating DAF, DES, DEQ, and DDU and introducing new terms DAT and DAP. Incoterms are incorporated into sales contracts and letters of credit to clarify delivery terms, and the same Incoterms language must appear on both the letter of credit and commercial invoice to avoid discrepancies between documents.

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    International Commercial Terms

    Original Title

    Incoterms 2010

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    Incoterms are international commercial terms developed by the International Chamber of Commerce that define responsibilities for transportation and delivery of goods between buyers and sellers. Incoterms 2010 replaced Incoterms 2000 and reduced the number of defined terms from 13 to 11 by eliminating DAF, DES, DEQ, and DDU and introducing new terms DAT and DAP. Incoterms are incorporated into sales contracts and letters of credit to clarify delivery terms, and the same Incoterms language must appear on both the letter of credit and commercial invoice to avoid discrepancies between documents.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    46 views2 pages

    What Are The Main Differences Between INCOTERMS 2010 and INCOTERMS 2000?

    Uploaded by

    Intekhab Jubraz
    Incoterms are international commercial terms developed by the International Chamber of Commerce that define responsibilities for transportation and delivery of goods between buyers and sellers. Incoterms 2010 replaced Incoterms 2000 and reduced the number of defined terms from 13 to 11 by eliminating DAF, DES, DEQ, and DDU and introducing new terms DAT and DAP. Incoterms are incorporated into sales contracts and letters of credit to clarify delivery terms, and the same Incoterms language must appear on both the letter of credit and commercial invoice to avoid discrepancies between documents.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Incoterms are International Commercial Terms.

    The Incoterms rules are an internationally


    recognized standard and are used worldwide in international and domestic contracts for the
    sale of goods. Incoterms are developed by ICC, International Chamber of Commerce. ICC
    regularly revised Incoterms to catch the changing market conditions and trade practices. Latest
    incoterms rules are titled with Incoterms 2010 that has been effective since 01.January.2011.
    Incoterms 2000 was the previous set of rules that was put into action on 1st of January 2000.
    What are the main differences between INCOTERMS 2010 and INCOTERMS 2000?
    Two new Incoterms rules DAT and DAP have replaced the Incoterms 2000 rules DAF, DES,
    DEQ and DDU. As a result the number of Incoterms rules has been reduced from 13
    (INCOTERMS 2000) to 11 (INCOTERMS 2010). There is no more DAF, DES, DEQ and DDU rules
    defined in INCOTERMS 2010. They have been eliminated
    INCOTERMS 2010 Classification

    EXW EX WORKS (... named place)


    FCA FREE CARRIER (... named place)
    RULES FOR ANY MODE OR
    MODES OF TRANSPORT

    CPT CARRIAGE PAID TO (... named place of destination)


    CIP CARRIAGE AND INSURANCE PAID TO (... named place of
    destination)
    DAT DELIVERED AT TERMINAL (new rules)
    DAP DELIVERED AT PLACE (new rules)
    DDP DELIVERED DUTY PAID (... named place of destination)

    FAS FREE ALONGSIDE SHIP (... named port of shipment)


    RULES FOR SEA AND INLAND FOB FREE ON BOARD (... named port of shipment)
    WATERWAY TRANSPORT

    CFR COST AND FREIGHT (... named port of destination)


    CIF COST, INSURANCE AND FREIGHT (... named port of
    destination)

    How to use INCOTERMS 2010 in letter of credit transactions?


    Incoterms are incorparated into sales contracts or proforma invoices. In letter of credit
    transactions we see incoterms in field 45A - Description of Goods and Services. If issuing banks
    put incoterms into the field 45-A Description of Goods and Services then beneficiaries should
    include this exact incoterms pharase in to the commercial invoice. Otherwise banks determine
    such presentation as discrepant
    Examples : Usage of Incoterms 2010 in a letter of credit
    Field 45A: Description of Goods and Services
    HYDROLIC PET BOTTLE BALING AND EQUIPMENTS. CONFORM TO PROFORMA INVOICE
    NUMBER ADG-001 DTD 08.11.2012 CFR ALGIERS PORT-ALGERIA,INCOTERMS 2010 THIS
    MENTION SHOULD APPEAR ON COMMERCIAL INVOICE.

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