Paris and New York, September 16, 2010 – Continuing a long tradition of providing the global trading community with the most up-to-date trade tools, the International Chamber of Commerce (ICC) today launched the latest revision of its internationally recognized trade terms Incoterms® 2010. The rules, used by companies in countless business transactions all over the world, will come into effect on January 1, 2011.
Short for “international commercial terms,” the Incoterms® rules were first created by ICC in 1936 to help traders avoid misunderstandings by clarifying the costs, risks, and responsibilities of both buyers and sellers in the delivery of goods.
The Paris-based ICC is the largest, most representative business organization in the world, working on behalf of thousands of member companies in over 140 countries. ICC champions the global economy as a force for economic growth, job creation and prosperity, and it sets rules and standards for business in a variety of areas.
The United States Council for International Business (USCIB), ICC’s American national committee, is organizing a series of training seminars throughout the United States to explain the changes to the Incoterms® rules.
“Before ICC developed the Incoterms® rules, the different terms were often subject to varying interpretations in different countries, often giving rise to disputes and litigation,” said ICC Chairman Rajat Gupta. “Today the Incoterms® rules for the usage of terms such as Ex Works (EXW), Free on Board (FOB), Cost and Freight (CFR) and Cost, Insurance and Freight (CIF) are part of the recognized canon defining the responsibilities of buyers and sellers in transactions for the sale of goods worldwide.”
The Incoterms® 2010 rules take into account developments in global trade since they were last revised in 2000. These include changes in cargo security, which has been at the forefront of the transportation agenda for many countries since the 9/11 attacks, and the increased use of electronic communications in business transactions.
Revisions have been made to ensure that the wording of the Incoterms® rules clearly and accurately reflects present-day trade practices.
The number of rules has been reduced from 13 to 11, and two new rules have been created: Delivered at Terminal (DAT) and Delivered At Place (DAP). The latest version also features guidance notes at the beginning of each of the rules to help clearly steer the user to the correct Incoterms® rule.
ICC has a long history of developing rules of practice for business, according to USCIB President and CEO Peter M. Robinson. “Because its rules are developed by experts and practitioners brought together by ICC in a thorough consultative process, they are globally accepted and have become the standard in international business rules-setting,” he said.
The USCIB seminars will be led by Frank Reynolds, a longtime authority on international commercial rules and the U.S. representative on the ICC drafting group that recommended the changes. The seminars will provide an overview of the Incoterms® rules and the revision process, definitions, their role in sales/purchasing contracts, analysis of the various Incoterms®
rules and their relation to payment terms. Each attendee will receive a copy of the official ICC Incoterms® 2010 book as well as a companion book, Incoterms® for Americans®, along with comprehensive seminar notes.
“We’re delighted to have one of the foremost Incoterms® authorities leading our fall seminar series,” said Mr. Robinson. “Several seminars are already sold out, and we look forward to working with experts like Frank among others to meet the growing demand.”
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation. Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.
Jonathan Huneke, VP Communications, USCIB
+1 212.703.5043 or email@example.com
Incoterms® is a trademark of the International Chamber of Commerce.