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13 Eur. J.L. Reform 380 (2011)
INCOTERMS 2010

handle is hein.journals/ejlr13 and id is 380 raw text is: INCOTERMS® 2010* Jan Ramberg A. Incoterms 1936 and Subsequent Revisions After their initial introduction in 1936, Incoterms were revised for the first time in 1957 and thereafter in 1967, 1976, 1980, 1990 and 2000. This appears to sug- gest that, in recent times, Incoterms have been revised at 10-year intervals. This, however, is a false impression. It is merely a coincidence that the last three revi- sions are separated by two 10-year periods. Indeed, the main purpose of Inco- terms is to reflect international commercial practice. Needless to say, commercial practice does not change at a set interval. It is a common misunderstanding that Incoterms represent nothing more than standard contract terms that could be revised at any time. In fact, the value of Incoterms as an expression of international commercial practice would be endan- gered by frequent changes for some purpose or other, such as to make them more reader-friendly or to clarify a few points of minor importance. A revision of Inco- terms therefore requires that something important has taken place in commercial practice. The first version of Incoterms1 was clearly focused on commodity trading and fixed the important delivery points at the ship's side or at the moment when the goods are taken on board the ship. The risk transfer point in the latter case was deemed to be the moment when the goods passed the ship's rail.2 This point was in the important and well-known trade terms FOB (Free On Board), CFR (Cost and Freight) and CIF (Cost, Insurance and Freight). In cases where the goods were to be delivered alongside the ship rather than across the ship's rail, the trade term FAS was available. Incoterms 1936 also contained a trade term representing the minimum obligation of the seller, namely EXW (EX-WORKS). After the Second World War, work on the revision of Incoterms was resumed. Carriage of goods by rail had now increased, and it was necessary to introduce appropriate terms. In railway traffic, the seller frequently undertakes to arrange for the carriage in the same manner as under FOB. In 1957, two trade terms were added for this purpose, namely FOR and FOT (Free on Rail and Free on Truck). In 1976, a specific term for air transport was added, namely FOB Airport. * This article has also been published in Penn State International Law Review, Vol. 29, No. 3, pp. 415-424. Professor Emeritus of the Law Faculty of the University of Stockholm. 1 See for an account of the historical background D. Sassoon, CIF and FOB Contracts, London 1975, para. 319; F. Eisemann & J. Ramberg, Die Incoterns heute und morgen, Vienna 1980, p. 133 et seq. 2 The ship's rail has been regarded as a border between the seller's and the buyer's land. See C.M. Schmitthoff, Legal aspects of export sales, London 1953, p. 43. European Journal of Law Reform 2011 (13) 3-4 380

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