3 Things To Know About Incoterms 2010

Incoterms 2010

The International Chamber of Commece publishes a revised version of the Incoterms every 10 years. If you got used to Incoteerms 2010, you still have existing contracts regulated under those Incoterms, or you just want to use a specific Incoterm that the ICC just replaced, you might be wondering: can I still use Incoterms 2010?

Well, the short answer is: yes. There is nothing that prevents you from using previous versions of Incoterms, as long as both parties agree with it.

However, there are three important things that you should know when you decide to use old versions of Incoterms.

1) You Can Use Previous Versions Of Incoterms

As we just wrote, you can use Incoterms 2010. But there is more: according to the ICC, the parties can use any version of the Incoterms that they like, as long as they both agree to use it. Plus, the use of a previous version of the Incoterms must be specified in the contract.

Therefore, you can use Incoterms 2010, but you can also use Incoterms 2000 if you and your business partner like: these rules remain valid. Although they recommend using the latest version of the Incoterms, the ICC leaves full freedom to the parties to use what they think is best for their businesses.

2) Do Not Mix Up Incoterms Of Different Versions

Suppose that you still want to use DAT Delivered At Terminal, a 2010 Incoterm that has been replaced with DPU Delivered At Place Unloaded in Incoterms 2020.

In this case, you have to state DAT Delivered At Terminal Incoterms 2010. That is because DAT Incoterms 2020 does not exist. It is perfectly fine to use previous Incoterms, but you must specify the Incoterms version that you are referring to.

Now, DAT Incoterms 2020 does not exist, therefore it is obvious that you are referring to DAT Incoterms 2010. However, suppose that you want to use CIF Cost, Insurance & Freight Incoterms 2010, and instead you write CIF Incoterms 2020, which does exist: does this make any difference for you?

3) Know That Incoterms Might Have A Different Meaning

Specifying the Incoterms version that you are referring to makes particular sense when the Incoterms still exist but have a different meaning.

Most times, Incoterms will not change much: for example, under FCA Free Carrier 2020 the parties can use their own means of transportation. Leaving aside that that was still the case even before the update, it has just been clarified, it is not a game-changer.

Yet, sometimes the change can be significant. For example, CIF 2020 and CIP 2020 now require that the seller provides a minimum insurance coverage. This minimum coverage is set according to Institute Cargo Clauses.

That was not the case before. If you were used to provide a different level of insurance, and want things to stay the same, you cannot use CIF Incoterms 2020. Rather, you should stick to the previous CIF Incoterms 2010, and provide the insurance coverage agreed with your counterparty.

Incoterms 2010: The Full List

Finally, here we provide the full list of the Incoterms 2010:

  • EXW – Ex Works
  • FCA – Free Carrier
  • CPT – Carriage Paid to
  • CIP – Carriage and Insurance Paid to
  • DAT – Delivered at Terminal
  • DAP – Delivered at Place
  • DDP – Delivered Duty Paid
  • FAS – Free Alongside Ship
  • FOB – Free On Board
  • CFR – Cost and Freight
  • CIF – Cost, Insurance and Freight

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