New Incoterms

Incoterms provide an internationally recognised set of rules for the interpretation of the most commonly used trade terms in foreign trade. They explain the obligations of the buyer and the seller in the contract of sale of goods. While not Customs driven, they do have some impact on the customs declaration especially as regards freight and transport costs and their impact on customs valuation.

These terms have been revised with effect from 1 January 2011. The changes include the removal of certain existing Incoterms and the introduction of new Incoterms to better reflect evolving trade practices. A new classification system divides 11 Incoterm rules into two distinct groups:

Rules for any mode of transport: EXW, FCA, CPT, CIP, DAT, DAP, DDP.
Rules for sea and inland waterway transport: FAS, FOB, CFR, CIF.

It is important that traders are aware of these changes and have engaged with their commercial partners to ensure their contractual arrangements are in line with the new Incoterms.

If you would like to learn more about new Incoterms and how they affect your business please contact Anne Williams (+353 1 792 6528).