In 1920, the International Chamber of Commerce established a commission for the study of an organic discipline of business terminology and, in 1923, published a pamphlet “Trade Terms” containing the interpretation of six terms (FOB, CUF, C&F, FAS, FOR / FOT and ex-return to destination – a term that has since fallen out of use).
The Chamber of Commerce has always taken steps to update and renew the business terminology to follow changes in the field of transport, leading to the current version, published as: “Incoterms 2010“.
Incoterms 2010 show the obligations of the seller and the buyer in relation to the various terms of delivery, and for different types of transport, and define their respective responsibilities in a simple and safe way, eliminating the possibility of subsequent disputes.
Below are the different conditions made according to the method of transport used.
RULES FOR ANY MODE OF TRANSPORTATION
FCA Free carrier
CPT Carriage paid to
CIP Transport and insurance paid to
DAT Rendered at terminal
DAP Delivered to destination
DDP Delivered duty paid
RULES FOR MARITIME AND INLAND WATERWAY TRANSPORT
FAS Free alongside ship
FOB Free on board
CFR Cost and freight
Presentation of Incoterms 2010
In 2010, the number of Incoterms rules was reduced from 13 to 11, replacing Incoterms DAF, DES, DEQ and DDU with two new rules to use on any chosen mode of transport: DAT, delivered to Terminal, and DAP, delivered to destination.
It is possible to request the full Incoterms 2010 text from the International Chamber of Commerce. In addition, to simplify the choice, two decision tables have been produced: one for the seller and for the buyer.