3 EJCCL 1 (2011)

handle is hein.journals/ejccl3 and id is 1 raw text is: 

Burghard Piltz*

Incoterms® 2010

After comprehensive preliminary work, the Inter-
national Chamber of Commerce (ICC) has presented
an updated version of the rules on the interpretation
of commercial terms1 first published some 75 years
ago. These new 'Incoterms® 20102 came into force
on 1 January 2011 and, with respect to their scope
and depth, exceed those adaptations implemented by
the INCOTERMS 2000. The following outlines the
important changes vis-h-vis the INCOTERMS 2000'
and provide some indications for the application of the
Incoterms® 2010.

1.     Overview
The Incoterms® 2010 neither change the structure
created in 1990, thus continuing to use the previous
classification into groups, nor do they impact upon
the designations and abbreviations of the clauses.
However, the Incoterms® 2010 now consist of only
eleven clauses personalised, like before, by a three-
letter-combination, under which the ICC continues
to compose rules for interpretation of the seller's and
buyer's obligations under ten repeated headlines. In so
doing, a basis is thereby created for their internation-
ally coordinated, uniform application. As before, the
Incoterms® 2010 are divided into four main groups
arranged by the initial letters of the English version of
the clauses. Every main group is characterised in such
a way that the bearing of costs and risks within the
group is governed by the same principle. The obliga-
tions on the seller increase from the E through the F
and C to the D group, while the responsibility of the
buyer decreases correspondingly:

-  E group: The sole clause of this group (EXW - Ex
   Works) only demands from the seller that he makes
   the goods, packed and labeled but not loaded,
   available for collection by the buyer.
-  F group: According to the F-group clauses (FCA
   - Free Carrier, FAS - Free Alongside Ship, FOB
   - Free On Board), the buyer remains responsible
   for the main carriage of the goods. However, in
   contrast to the EXW clause, the seller is obliged to
   deliver the goods to the named place of delivery
   and to clear the goods for export at his own
   expense. The buyer must take delivery of the goods
   at the place of delivery, organise and pay for the
   main transport and bear the further responsibility
   for the transit through third countries and import
   into the country of destination. Unlike the FAS
   and FOB clauses, FCA is designed for any mode or
   modes of transport and is particularly convenient
   for transport by containers.

European Journal of Commercial Contract Law 2011-1

- C group: The CFR (Cost and Freight) and CIF
   (Cost, Insurance and Freight) clauses are designed
   for sea and inland waterway transport. The CPT
   (Carriage Paid To) and CIP (Carriage and Insur-
   ance Paid to) clauses can however be used for any
   mode or modes of transport and are especially
   convenient for transport by containers. A com-
   mon characteristic of all C clauses is that the seller
   must clear the goods for export and - other than
   according to the F-group clauses - organise the
   main carriage to the place of destination at his
   own expense. As in the F group, the risk passes to
   the buyer when the goods are handed over at the
   place of delivery to the carrier of the main carriage.
   However, in contrast to the F clauses, the buyer
   must take delivery at the destination only. C clauses
   distinguish themselves from the other groups in
   exhibiting two differing points, on the one hand by
   the place of delivery and the place where risk passes
   and, on the other hand, by the place where delivery
   is to be taken and the place decisive for the alloca-
   tion of costs.
- D group: Typically characteristic for all of the
   D-Group clauses (DAT - Delivered At Terminal,
   DAP - Delivered At Place, DDP - Delivered Duty
   Paid) is that the seller must bear all costs and - in
   contrast to the C clauses - also bear all risks until
   the goods arrive at the named place of destination.
   The named place of destination is the place of
   delivery and the place at which the buyer is to take
   delivery of the goods. However, the clearance for
   import remains the responsibility of the buyer. The
   D clauses hence form, to a large extent, the contrary
   rule compared to the F group. Only in the case of
   the DDP clause must the exporter also procure the
   clearance of the goods for import. Therefore, the

   Prof. Dr. Burghard Piltz, Lawyer at Brandi Rechtsanwilte,
   Professor at Universit~it Bielefeld.

1. On the history of development of the Incoterms see
   Ramberg, in: Andersen/Schroeter, Sharing International
   Commercial Law across National Boundaries, Festschrift for
   Albert H. Kritzer (2008), 394 et seq.
2. Incoterms® 2010 by the International Chamber of Com-
   merce (ICC), as ICC Publication 715 E published by ICC
   Publications, 38 Cour Albert ler, 75008 Paris, France.
3. For more details on this matter see, in particular, Werten-
   bruch, ZGS 2005, 136 et seq, Gabriel, VJ 2001, 41 et seq,
   Piltz, RIW 2000, 485 et seq, and Bredow/Seiffert, INCO-
   TERMS 2000, 2000.

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