Auld Lang Syne Incoterms 2000

Good-bye, Incoterms 2000. Hello, Incoterms 2010. Changes in Incoterms are set to take effect in January 2011. Incoterms originally began in 1936 as a set of common rules to bring legal certainty and simplification to drafting legal contracts. The terms help define responsibility of goods throughout the shipment process, particularly in international trade.

Significant alterations have been made to the 2010 version to facilitate changes in global business including electronic documentation and security. Divided into two classes, 1) any mode of transport and 2) maritime transport, Incoterms will be reduced from 13 to 11. The most significant modifications will take effect in the 'D' Group terms (think DAT, DAP, DDT, etc.).

While most will welcome the new, updated terms, this coming New Year's Eve, don't forget a little Auld Lang Syne in tribute to Incoterms 2000.

Sample Test Question: Task 2-B-3

EXW (Ex Works) is an Incoterm best described as the which of the following:

A) The seller delivers goods, cleared for export to the buyer's designated carrier at a named location. Delivery may take place when goods are loaded into the carrier's equipment, or when goods are simply made available to the carrier.
B) The seller places goods on a loading dock at which time risk transfers to the carrier.
C) Used in maritime trade, the responsibility for goods transfers when the goods are loaded aboard the vessel.
D) The price quoted by a seller applies to the goods' point of origin. The buyer takes possession at that point and bears all costs and risks in transportation.