Five Quick Facts About Incoterms 2010

Incoterms 2010 have now been effective for nearly three months, and contracting parties should be familiarizing themselves with the changes that were made from the 2000 to the 2010 version. While some of those changes are seemingly minor (such as the reorganization of the Incoterms rules into two categories according to the mode of transport used instead of by initial letter), others are more substantial. To assist those parties, Dinsmore & Shohl has identified five areas where the changes to the rules have been important to its clients:

1. Four terms (DAF, DEQ, DES, DDU) have been eliminated and have been replaced by two new rules: Delivered at Place (DAP) and Delivered at Terminal (DAT). The two new terms were intended to allow the parties some flexibility as to the place where seller's obligation is complete when choosing the "D" terms.