September 2010

Monday, September 27, 2010 to Wednesday, September 29, 2010

On 1 January 2011 a comprehensive revision of ICC's Incoterms rules applying to billions of dollars of business transactions will come into effect, a major step in helping international trade professionals ensure legal certainty and save both time and money. The new revision, the first in a decade, reflects the profound changes that have taken place in global trade since 2000. These include the importance cargo security has taken for many countries and the 2004 revision of the United States' Uniform Commercial Code, which resulted in a deletion of the former US shipment and delivery terms. The revised Incoterms rules also reflect the adoption in 2009 by insurance markets of the revised Institute Cargo Clauses (LMA/IUA)(2009). The new rules have been developed to take into account these changes as well as other trends in international commercial practices. The onward march of containerization and point-to-point deliveries, for example, persuaded ICC to introduce two new "Delivered" terms. Incoterms rules have been clustered more clearly under two groups - those appropriate only for maritime transport and those appropriate for sale contracts where any mode or modes of transport are used. The result is a set of clearer, more precise and more comprehensive rules adapted for the 21st century that offer increased legal certainty in sales transactions between and within countries as well as within customs-free blocks. The rules will help traders avoid misunderstandings by clarifying the costs, risks, and responsibilities of both buyers and sellers, making it essential for professionals in international trade to clearly understand the new rules.