The 2010 Incoterms released by the International Chamber of Commerce took effect on January 1, 2011. Updated once every ten years, the 2010 version of the Incoterms brings changes to the international rules on trade in goods, impacting the rights and obligations of buyers, sellers, shippers and other market participants. Changes to the 2010 Incoterms include:
- Classification of the Eleven Incoterms Rules. The 2010 Incoterms have now been organized into two classifications: those rules applicable to any mode of transport and those specific to sea and inland waterway transport. Importantly, language concerning the "ship's rail" as the point of delivery has been eliminated from these rules, and instead delivery is deemed complete when the goods are "on board" the vessel.
- Security-related Clearances. Since the last publication of the Incoterms in 2000, world events have resulted in an increased focus on security-related clearances for the entry of goods from abroad. Many jurisdictions now require parties to verify that goods do not pose a threat to human life or property. The 2010 Incoterms allocate the obligation to obtain or assist with such security-related clearances between the buyer and seller.
- New Incoterms Rules Introduced. The 2010 Incoterms introduce two new rules: "DAT" (Delivered at Terminal) and "DAP" (Delivered at Place). These new rules replace the 2000 Incoterms rules DAF, DES, DEQ and DDU. DAT and DAP were adopted in order to apply to delivery of goods using any mode of transport (i.e., not just by sea vessel).
- Terminal Handling Charges. In order to avoid situations under certain Incoterms rules where the buyer pays the costs of handling and moving goods at the port of delivery or terminal twice (once to the seller via the increased selling price, and again to the port or terminal operator), the 2010 Incoterms allocate these costs to the parties depending upon their obligations under the applicable rule.