The New Incoterms 2010

KWE's Viewpoint
Issued by Corporate Strategy Headquarters 1st January 2011
KWE Confidential Material

Contents
1. Outline 2. Basic Directions 3. Key Changes 4. Responsibility Chart

KWE Confidential Material

1. Outline
Incoterms 2010 were launched in mid-September 2010 and will come into effect on 1 January 2011. As you may know, the International Chamber of Commerce (ICC) sets up and maintains this rule. Though the rule doesn't have regal binding force, it is internationally used and recognized. And our customers use this rule in their business.

KWE Confidential Material

2. Basic Directions
All related KWE staffs are required to know this rule. And we will have the case where we have to explain the rule to customers in our daily work. Please note following points at least. Incoterms 2010 are valid from 1 January 2011. Incoterms have "NO" legal binding force. Incoterms 2000 and older ones are still used.

In case you have to answer the customer about "their trade terms", please try to check their contract sheet first.

KWE Confidential Material

3. Key Changes

Incoterms 2010 will be categorized into 2 groups as "Any Mode of Transport" and "Sea and Inland Waterway Transport Only" whereas it used to be divided into 4 groups, "E / F / C / D" in Incoterms 2000. Elimination of 4 terms (DDU DAF DES DEQ) DAT DAP will be added. DAT (Delivered At Terminal) Seller is subject to all risks and charges of transport until the completion of unloading goods at requested terminal. DAP (Delivered At Place) most likely DDU replacement Seller is subject to all risks and charges of transport until the goods is delivered to the requested place. (Unloading goods is all risks & charges of buyer) Change of seller's risk in FOB CFR CIF KWE Confidential Material

* Provided by Kintetsu World Express (Benelux) B.V.

4. Responsibility Chart
The timing of risks & charges move / Seller & Buyer's responsibilities in the new rule.
Timing of risks & charges move EXW FCA CPT CIP DAT DAP (DDU) DDP FAS FOB CFR CIF Factory
Handing over the cargo to carrier Handing over the cargo to carrier Handing over the cargo to carrier
After unloading cargo at dest terminal Before unloading cargo at final dest. Before unloading cargo at final dest. Before unloading cargo at final dest.

Export C/C

Flight/Shipping arrangement

Insurance

Import C/C

Duty & Tax

Charges at foreign port / terminal

Delivery to final dest.

Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller

Buyer Buyer Seller Seller Seller Seller Seller Seller Buyer Buyer Seller Seller

Buyer Buyer Buyer Seller Seller Seller Seller Seller Buyer Buyer Buyer Seller

Buyer Buyer Buyer Buyer Buyer Buyer

Seller(Buyer)*

Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Buyer Buyer Buyer Buyer

Buyer Buyer Buyer Buyer Seller Seller Seller Seller Buyer Buyer Buyer Buyer

Buyer Buyer Buyer Buyer Buyer Seller Seller Seller Buyer Buyer Buyer Buyer

Seller Buyer Buyer Buyer Buyer

Freight ship's rail Freight on board Freight on board Freight on board

*Under DDU, Import C/C is to be the buyer's responsibility according to the Incoterms published by ICC.

* Provided by Kintetsu World Express (Benelux) B.V.

KWE Confidential Material