Guide to the Incoterms

2010
Rules
INCOTERMS

2010 Rules
The Incoterms

2010 rules* (International Commercial Terms) were developed b the International Chamber o!
Commerce (ICC) as a uni!orm set o! rules to clari! the costs" ris#s and obli$ations o! buers and sellers in
international commercial transactions% &ecause the address issues relatin$ to import and e'port" Incoterms

2010 rules are most appropriate !or use in international shippin$( the are" however" used !or )%*% domestic
shippin$ as well%
Incoterms

2010 rules are periodicall revised and multiple versions are available !or use b contractin$ parties%
The Incoterms

2010 rules became e+ective ,anuar 1" 2000" and remain in e+ect% The Incoterms

2010 rules are

e+ective as o! ,anuar 1" 2011%

Re!er to the ICC -eb site at www%iccwbo%or$.Incoterms.id/000.inde'%html !or in!ormation about these terms and
their de1nitions" which are copri$hted b the ICC%
Note: Although the new Incoterms

2010 rules became aa!lable "or use as o" #anuar$ 1% 2011%

Incoterms 2000 rules cont!nue to be aa!lable& It !s !ncumbent u'on contract!ng 'art!es to
(eterm!ne wh!ch term the$ want to use an( to (es!gnate the ers!on be!ng a''l!e(&
2or some time Incoterms

rules have consisted o! 1/ terms% Incoterms

2010 rules eliminate !our o! the

previousl3e'istin$ terms ())*% )ES% )E+ an( )A,) and add two new terms ()AT an( )A-)" resultin$ in a
total o! 11 terms% The new version is made available !or both domestic and international use( contractin$ parties
should" however" review the applicabilit o! these terms to the domestic environment prior to applin$ them%
The terms are structured to increase incrementall the obli$ations (control" ris# and cost) on one part while
decreasin$ the obli$ations o! the other" dependin$ on the speci1c term chosen% 4ach term clari1es which part is
responsible !or5
Inland !rei$ht (transportation within the ori$ination countr)
2orwarder selection
4'port clearance
Carrier selection and schedulin$
International !rei$ht
Import clearance
6n3carria$e (transportation within the destination countr)
7eliver occurs (and risk of loss trans!ers) at the point desi$nated b the term selected% Trans!er o! title is 86T
covered b an o! the Incoterms

2010 rules and must be separatel speci1ed b the parties%

Incoterms

2010 rules can be divided into two $roups 9 multi3modal (available !or multiple !orms o! transport"
includin$ land" air and waterwa transportation) and sin$le mode (applicable onl to waterwa transportation)%
The terms in each $roup are listed on pa$e 2 in order o! increasin$ responsibilit !or the seller (and
correspondin$l decreasin$ responsibilit !or the buer)% *o" !or e'ample" usin$ the term 4:- ma#es the seller
responsible onl !or ma#in$ the $oods available at its own premises( deliver occurs and ris# o! loss trans!ers at
that point% -hen the term 77; is used" the seller becomes responsible !or everthin$ e'cept on3carria$e where
the location !or deliver is not the buer<s actual location% 77; is the onl Incoterms

rule that ma#es the seller

responsible !or import clearance%
&uers in the )nited *tates who are li#el to be !amiliar with deliver terms de1ned within =rticles 2 and 2= o! the
)ni!orm Commercial Code ()CC) should pa particular attention to the overlap in the use o! certain
terms.abbreviations between the Incoterms

2010 rules and the )CC% >2ree on board? (2%6%&%)" >!ree alon$side?
(2%=%*%) and >C%I%2%? are all used in the )CC" but their de1nitions there are much di+erent !rom the de1nition o! the
same terms in the Incoterms

2010 rules% )nder the Incoterms

2010 rules all three o! the overlappin$ terms

(26&" 2=* and CI2) !all into the >sin$le mode? $roup" meanin$ the can onl be used !or waterwa transportation%
)nder the )CC onl 2%=%*% is limited to use with a vessel%
Guide to the Incoterms

2010 Rules 9 2011 )pdates ;a$e 1 o! .

*Incoterms

is a re$istered trademar# o! the International Chamber o! Commerce%

8umerous publications and seminars are available throu$h the International Chamber o! Commerce
(http5..store%iccboo#susa%net. or http5..www%iccboo#s%com.@ome.@ome%asp') as well as !rom other or$aniAations
e'plainin$ in depth the application o! both the Incoterms

2000 rules and Incoterms

2010 rules%
TERM / )E,INITION
The multi3modal (available !or multiple !orms o! transport" includin$ land" air and waterwa transportation) terms are5
9 )nchan$ed
in
Incoterms

2010 rules
E0 wor1s 2E345 named place (seller<s location) 9
=n Incoterms

rule under which the price that the seller Buotes applies onl at the point o! ori$in%
The buer ta#es possession o! the shipment at the point o! ori$in and bears all costs and ris#s
associated with transportin$ the $oods to the destination% This Incoterms

rule is re$arded as the

most open3ended% There is $enerall nothin$ speci1c re$ardin$ deliver and there is a mutuall
convenient pic#up time !or e'porter and importer a$reed upon% )sed !or an mode o! transport%
See Also Incoterms

rules

Compare: 7elivered 7ut ;aid
9 )nchan$ed
in
Incoterms

2010 rules
,ree Carr!er At 2,CA5 named place (seller<s countr) 9
=n Incoterms

rule under which seller delivers $oods" cleared !or e'port" to the buer3desi$nated
carrier at a named location% )sed !or an mode o! transport% *eller must load $oods onto the buerCs
carrier% The #e document si$ni!in$ trans!er o! responsibilit is receipt b carrier to e'porter%
See Also: Incoterms rules
9 )nchan$ed
in
Incoterms

2010 rules
Carr!age -a!( To 2C-T5 named place o! destination 9
=n Incoterms

rule used !or an mode o! transportation% &uer assumes title and ris# o! loss when
$oods are delivered to the carrier% *eller pas shippin$ to destination% C;T deliver ta#es place when
the e'porter hands over $oods to the carrier% The e'porter is $iven bill o! ladin$ or eBuivalent
document (air wabill" sea wabill" multi3modal bill o! ladin$)%
See Also: Incoterms rules
Compare: Carria$e and Insurance ;aid To
9 )nchan$ed
in
Incoterms

2010 rules
Carr!age Insurance -a!( 2CI-5 named place o! destination 9
=n Incoterms

rule under which seller delivers $oods to seller3desi$nated carrier" pas cost o!
carria$e to named destination and must obtain insurance to cover buer<s ris# o! loss in transit%
&uer bears ris# o! loss and an additional costs a!ter seller<s deliver to carrier" protected b seller<s
insurance% )sed !or an mode o! transportation( same as C;T" but seller pas !or insurance and
names buer as bene1ciar%
See Also: Incoterms rules
Compare: Carria$e ;aid To
9 4liminated
in
Incoterms

2010 rules
)el!ere( )ut$ *n'a!( 2))*5 named place o! destination 9
=n Incoterms

rule under which seller bears the ris# and e'pense o! $ettin$ the $oods to a named
destination" but e'cludin$ duties" ta'es and other oDcial char$es paable on import% *ome
variations on 77) are possible i! the seller is to pa some o! the import char$es% 7eliver ta#es place
when the e'porter places $oods at the disposal o! the importer in cit o! deliver% There is no
correspondin$ transportation document" althou$h a bill o! ladin$ is usuall used% )sed !or an mode
o! transportation% *ame as 7elivered 4' Eua (74E)" e'cept that the buer and seller can speci!
deliver o! the $oods to a warehouse or other destination point% *eller must arran$e !or $round
transport in the buerCs countr% &uer bears responsibilit !or import customs duties%
This term is de1ned in the Incoterms

2000 rules% It has been eliminated in the Incoterms

2010
rules" but the Incoterms 2000 rules can still be used b contractin$ parties i! the so a$ree%
See Also: Incoterms

rules
Compare: 7elivered 7ut ;aid" 7elivered 4' Eua" 7elivered at Terminal" 7elivered at ;lace
Guide to the Incoterms

2010 Rules 9 2011 )pdates ;a$e 2 o! .

*Incoterms

is a re$istered trademar# o! the International Chamber o! Commerce%

TERM / )E,INITION
9 8ew in
Incoterms

2010 rules
)el!ere( at Term!nal 2)AT5 named place o! destination 9
=n Incoterms

rule under which seller delivers $oods to a named terminal in the destination
countr% &uer is responsible !or import clearance and an !urther in3countr carria$e% This term is
one o! two terms considered to be replacement terms !or 7elivered 7ut )npaid (77))" which is
eliminated !rom Incoterms 2010%
See Also5 Incoterms rules
Compare5 7elivered at ;lace" 7elivered 7ut )npaid" 7elivered 7ut ;aid
9 8ew in
Incoterms

2010 rules
)el!ere( at -lace 2)A-5 named place o! destination 9
=n Incoterms

rule under which seller delivers $oods to the buer<s !acilit or another named
location (other than a terminal) in the destination countr% &uer is responsible !or import clearance
and an !urther in3countr carria$e% This term is one o! two terms considered to be replacement
terms !or 7elivered 7ut )npaid (77))" which is eliminated !rom Incoterms 2010 rules%
See Also5 Incoterms rules
Compare5 7elivered at Terminal" 7elivered 7ut )npaid" 7elivered 7ut ;aid
9 )nchan$ed
in
Incoterms

2010 rules
)el!ere( )ut$ -a!( 2))-5 named place o! destination 9
=n Incoterms

rule under which seller (e'porter) is responsible !or all costs involved in deliverin$
the $oods to a named place o! destination and !or clearin$ customs in the countr o! import% *eller
provides literall door3to3door deliver" includin$ customs clearance in the port o! e'port and the
port o! destination% Thus" seller bears the entire ris# o! loss until $oods are delivered to the buerCs
premises% 2ull term is F77; named place o! destination%F 7eliver ta#es place when e'porter places
$oods at disposal o! importer in cit o! deliver% There is no correspondin$ transportation document"
althou$h bill o! ladin$ is usuall used% )sed !or an mode o! transportation% *eller bears all ris# and
customs responsibilities until the $oods are delivered to a speci1ed location and clear import
customs% &uer assumes ris# and title when the $oods are delivered to the buerCs speci1ed
location%
See Also: Incoterms rules
Compare: 7elivered 7ut )npaid" 4' -or#s" 2ree 6n &oard ()CC)" 7elivered at Terminal" 7elivered at
;lace
The sin$le mode terms (which can onl be used with waterwa transportation) are5
9 )nchan$ed
in
Incoterms

2010 rules
,ree Alongs!(e Sh!' 2,AS5 named vessel at loadin$ port 9
=n Incoterms

rule used onl !or maritime trade (transport b vessel) )nder this arran$ement" the
supplier a$rees to deliver the $oods in proper condition alon$side the vessel% The buer assumes all
subseBuent ris#s and e'penses a!ter deliver to the pier% This term can only be used for waterway
transportation.
See also5 Incoterms rules
Compare5 2%=%* 9 )CC
9 )nchan$ed
in
Incoterms

2010 rules
,ree On 6oar( 2,O65 named vessel at loadin$ port 9
=n Incoterms

rule used onl !or maritime trade (transport b vessel) under which responsibilit !or
the shipment trans!ers !rom e'porter to importer when shipment is loaded aboard the vessel% *eller
must load the $oods onto the ship% Centuries o! maritime tradition sas that the 26& point is the
*hipCs Rail" also re!erred to as F2rei$ht on &oard%F This is the older maritime term o! trade% I! the
!rei$ht !alls while loadin$" however" it is the e'porterCs responsibilit i! it lands on Bua" but it is the
importerCs responsibilit i! it lands on ship% The documentation o! deliver is the ocean bill o! ladin$
or sea wabill% This term can only be used for waterway transportation%
See Also: 2rei$ht Collect" Incoterms rules
Compare: 2ree 6n &oard 9 )CC
9 )nchan$ed
in
Incoterms

2010 rules
Cost 7 ,re!ght 2C,R5 named port o! destination
=n Incoterms

rule under which $oods are considered to be FdeliveredF (and buer assumes ris# o!
loss) when the pass the shipCs rail in the port o! shipment% The seller is responsible !or clearin$ the
$oods !or e'port and !or costs and !rei$ht to brin$ the $oods to the destination port% This term can
only be used for waterway transportation.
*ee =lso5 Incoterms rules
Compare5 C%G2% 9 )CC" C%I%2 9 )CC" CI2 9 Incoterm" Carria$e ;aid To
Guide to the Incoterms

2010 Rules 9 2011 )pdates ;a$e 8 o! .

*Incoterms

is a re$istered trademar# o! the International Chamber o! Commerce%

TERM / )E,INITION
9 )nchan$ed
in
Incoterms

2010 rules
Cost% Insurance 7 ,re!ght 2CI,5 named port o! destination 9
This Incoterms

rule is similar to Cost G 2rei$ht (C2R) where $oods are considered to be FdeliveredF
(and buer assumes ris# o! loss) when the pass the shipCs rail in the port o! shipment% The seller is
responsible !or clearin$ the $oods !or e'port and !or costs and !rei$ht to brin$ the $oods to the
destination port% )nder CI2 the seller must also obtain marine insurance a$ainst buerCs ris# o! loss
or dama$e in transit% This term can only be used for waterway transportation.
See Also: Incoterms rules
Compare: C%G2% 9 )CC" C%I%2 9 )CC" Cost and 2rei$ht" Carria$e Insurance ;aid
9 4liminated
in
Incoterms

2010 rules
)el!ere( E0 Sh!' 2)ES5 named port
=n Incoterms

rule under which seller<s deliver obli$ation is satis1ed when $oods are placed at
buer<s disposition on board a vessel at a desi$nated destination port" not cleared !or import%
This term is de1ned in the Incoterms

2000 rules% It has been eliminated in Incoterms

2010 rules"
but Incoterms

2000 rules can still be used b contractin$ parties i! the so a$ree%
See Also: Incoterms

rules
Compare: 7elivered 4' Eua
9 4liminated
in
Incoterms

2010 rules
)el!ere( E0 +ua$ 2)E+5 named port
=n Incoterms

rule used !or ship transport% *i$ni1es that the seller is responsible !or all ris#s and
costs incurred to have the $oods delivered and unloaded at a named port o! destination% This
includes the obli$ation to contract and pa !or !rei$ht and transportation costs b sea or inland
waterwa" unloadin$ !ees" e'port and import licensin$ !ees" and other ta'es (unless speci1call
e'cluded in the contract)% The buer is obli$ated onl to assist in obtainin$ an import license or
other oDcial authoriAation necessar to import the $oods%
This term is de1ned in the Incoterms

2000 rules% It has been eliminated in the Incoterms

2010
rules" but Incoterms

2000 rules can still be used b contractin$ parties i! the so a$ree%
See Also: Incoterms

rules
Compare: 7elivered 4' *hip
9 4liminated
in
Incoterms

2010 rules
)el!ere( at ,ront!er 2)A,5
=n Incoterms

rule under which sellerCs deliver obli$ation is satis1ed when $oods are placed at
buerCs disposition on arrivin$ means o! transportation" cleared !or e'port but not import" and not
unloaded% 7eliver ta#es place when the vehicle is placed at disposal o! importer at desi$nated
border cit% There is no speci1c documentation !or trans!er" althou$h some carriers provide some%
)sed !or an mode o! transportation% &uer acBuires title" ris# and responsibilit !or import customs
clearance%
This term is de1ned in the Incoterms

2000 rules% It has been eliminated in the Incoterms

2010
rules" but the Incoterms

2000 rules can still be used b contractin$ parties i! the so a$ree%

See Also: Incoterms

rules
Guide to the Incoterms

2010 Rules 9 2011 )pdates ;a$e . o! .

*Incoterms

is a re$istered trademar# o! the International Chamber o! Commerce%