Incoterms® 2010 Updated in 2010 Incoterms - short for International Commercial Terms Standard trade definitions most commonly used in international sales contracts Incoterms make international trade easier and help traders in different countries to understand one another Covers tasks, costs and risks involved in the delivery of goods Incoterms do not deal with transfer of title The risk of loss or damage of the goods is generally transferred when the seller has fulfilled its delivery obligation Include reference to a location of delivery Incoterm should be clearly stated in the contract Among the best known Incoterms are EXW (Ex works), FOB (Free on Board), CIF (Cost, Insurance and Freight), DDP (Delivered Duty Paid) Below is an example of the correct use of Incoterms® rules: FCA 123 Example Street, Paris, France Incoterms® 2010
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