Our Shanghai Buying office team would like to advise you of some changes in Incoterms which you may wish to apply to future shipments. The International Chamber of Commerce (ICC ) has published revisions to its international commercial terms, also known as Incoterms, that will go into effect from January 1, 2011.

The revised list from Incoterms 2010 contains a series of changes, such as a reduction in the number of terms to 11 from 13.  The DAF, DES, DEQ, and DDU designations have been eliminated, while two new terms, Delivered at Terminal (DAT) & Delivered at Place (DAP), have been added. They attempt to better take into account the role cargo security and electronic data interchange now play in international trade.

DAT (Delivered at Terminal):
This incoterm replaces the previous DEQ (“Delivered ex quay”)
DAP (Delivered at Place):
This Incoterm will replace the DAF – (Delivered At Frontier), DES – (Delivered Ex Ship) & DDU – (Delivered Duty Unpaid).

 

The revised Incoterms will also address duties to provide information regarding security-related clearances, such as Importer Security Filings or more commonly called 10+2.

This requires cargo information to be transmitted to the agency at least 24 hours before goods are loaded onto an ocean vessel for shipment into the US – for security purposes.

Let our freight forwarding partners help you with complicated shipping processes – other chain-of-custody information (CoC), chronological documentation or paper trails, showing the seizure, custody, control, transfer, analysis, and disposition of evidence, physical or electronic.

For mor information about freight please check Incoterms 2010 & other terms like What is a bill of lading get in touch.

ODMAsia also have a Puzzle for Incoterms for futher explanation to clients – will update this puzzle for you..