NEW INCOTERMS ARE ISSUED
The International Chamber of Commerce has issued the Incoterms 2000, a
revised version of standard trade definitions.
The latest edition of Incoterms takes into account the increased use of
intermodal transport and clearly specifies the loading and unloading obligations of both
buyer and seller.
"One of the most frequent queries we received about the old version
(was) on the allocation of terminal handling charges under FCA (Free Carrier)," said
Emmanuel Jolivet, policy manager for international commercial practice at the
International Chamber of Commerce. "Previous ambiguities have now been removed,"
he added.
Revised definitions for the FAS (Free Alongside Ship) and DEQ (Delivered Ex
Quay) Incoterms reverse the obligation of customs clearance. Under FAS, the seller will
now have to clear the goods for export. Under DEQ, the buyer will now bear the
responsibility for clearing the goods.
Incoterms are a basic reference for sales contracts, widely used by traders
across the world. The International Chamber of Commerce said that the Incoterms 2000
should now be incorporated into contracts that are effective from Jan. 1, 2000.
The Incoterms 1990 remain valid until the end of the year.
The 13 Incoterms are: EXW (Ex Works); FCA (Free Carrier); FAS (Free Alongside
Ship); FOB (Free On Board); CFR (Cost and Freight); CIF (Cost, Insurance and Freight); CPT
(Carriage Paid To); CIP (Carriage and Insurance Paid to); DAF (Delivered At Frontier); DES
(Delivered Ex Ship); DEQ (Delivered Ex Quay); DDU (Delivered Duty Unpaid); and DDU
(Delivered Duty Paid).
The 13 Incoterms abbreviations are the same in the latest revision as in 1990, but their
definitions have changed and the reference to "duty paid" for Delivered Ex Quay
has been removed.