THE NEW INCOTERMS® 2010

Parties to international contracts of sale very often use international commercial terms – so-called INCOTERMS® – in order to define their obligations. INCOTERMS® regulate major obligations of the seller and the buyer for all international contracts of sale, irrespective of the business sector. The terms are characterized by their abbreviations consisting of three letters such as “FOB” (“Free On Board”) and “CIF” (“Costs Insurance and Freight”). Since 1936 the International Chamber of Commerce (ICC) has published several versions with a set of international rules for the interpretation of trade terms. The present version “INCOTERMS® 2010” names 11 terms and has been in force since 1st January, 2011.