The Professional Standard for International The Professional Standard for International Trade Trade ©2010 Trade Technologies, . All rights reserved. 1

Incoterms® 2010 Incoterms® 2010

©2010 Trade Technologies, Inc. All rights reserved. 2

INCOTERMS® 2010 - Who set the rules?

International Chamber of Commerce (ICC)

Founded 1919 in Paris

International representatives from

over 120 countries

Conforms with WTO, U.N., G20

©2010 Trade Technologies, Inc. All rights reserved. 3

INCOTERMS® 2010 -

What are they?

©2010 Trade Technologies, Inc. All rights reserved.

4

Incoterms (International Commercial Terms)

3 Letter trade terms that relate to common sales practices:

• Standardizes rules

• Defines responsibility

• Outlines costs included in each term

• Reveals gaps in all areas of concern

• Determines specific delivery point

Incoterms® 2010 – The Basics

Considerations

•How will the goods be shipped?

•Who will pay the costs of the transportation and Insurance?

•Have all the necessary costs been included in the final pricing? •What risks are involved with the terms that are being used?

•What is the exact location point where risk transfers from seller to buyer?

©2010 Trade Technologies, Inc. All rights reserved. 6

Incoterms® Incoterms® 2010 2010 Common Misconceptions. Common Misconceptions. . .. .

Incoterms do not:

o Transfer legal title or ownership of goods. Transfer, title, or ownership process begins with exchange of documents

• Exchange of money for documents +

• Delivery of goods per Incoterms®

=

• Title Transfer

©2010 Trade Technologies, Inc. All rights reserved. 7