January 18, 2022

Volume XII, Number 18

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January 15, 2022

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Five Quick Facts About Incoterms 2010

Incoterms 2010 have now been effective for nearly three months, and contracting parties should be familiarizing themselves with the changes that were made from the 2000 to the 2010 version. While some of those changes are seemingly minor (such as the reorganization of the Incoterms rules into two categories according to the mode of transport used instead of by initial letter), others are more substantial. To assist those parties, Dinsmore & Shohl has identified five areas where the changes to the rules have been important to its clients:

  1. Four terms (DAF, DEQ, DES, DDU) have been eliminated and have been replaced by two new rules: Delivered at Place (DAP) and Delivered at Terminal (DAT). The two new terms were intended to allow the parties some flexibility as to the place where seller's obligation is complete when choosing the "D" terms.
     
  2. Each of the Incoterms rules now allocates parties' responsibility to obtain or provide information for security-related clearances. Each rule also allocates responsibility for terminal handling charges, in an attempt to eliminate double-charges for those items.
     
  3. The rules and the comments to the rules have been drafted to make clear that the rules can be used internationally, as well as domestically. Where the rules address import and export formalities, the rules make clear that the parties bear those responsibilities "where applicable."
     
  4. The parties' obligations to provide contract documents may be fulfilled by providing electronic records if the parties have agreed or if providing electronic records is customary in the industry. Thus the rules may adapt as industries move towards wider acceptance of electronic records.
     
  5. The rules now allow for string sales, in which the seller's obligation is fulfilled not by shipping goods but by procuring goods already shipped.
© 2022 Dinsmore & Shohl LLP. All rights reserved.National Law Review, Volume I, Number 88
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Harvey Jay Cohen, Domestic Foreign Transactions Attorney, Dinsmore Shohl law
Partner

Harvey Cohen is a long-standing, accomplished corporate attorney, uniquely focused on helping clients win by practically, pro-actively and efficiently assisting with their domestic and foreign transactions. With years of studies and dealings abroad, Harvey applies his global experience to address cross-border strategies and complex issues in tandem with client product or service needs, specific industry situations, as well as "must haves" and "must avoids" before crafting any solution or agreement. 

Harvey is known for asking the hard, practical...

513-977-8144
Jacob Manning, Business transactions lawyer, Dinsmore Shohl law firm
Partner

Jacob Manning advises businesses and individuals in a variety of business transactions, both domestic and cross-border. He drafts and reviews contracts, particularly those involving sales of goods, distributorships and licensing, and construction, vendor and service contracts on behalf of boards of education and other public entities. When clients are negotiating a contract, Jacob also provides advice about payment, including guarantees and letters of credit. Should a dispute arise, he represents clients both before US courts and in arbitration subject to international...

304-230-1604
Frank Schuckmann, Dinsmore Law, International Practice Group Lawyer
Of Counsel

Frank Schuckmann is a Partner in the Corporate Department and a member of the International Business Practice Group where he heads the German Desk for the firm. Frank represents domestic and international companies and individuals in the areas of mergers and acquisitions, corporate, financing, securities and customs matters. He specializes in the representation of German companies in their activities in the U.S., as well as representing U.S. companies as they enter Europe.  Recently, he has represented numerous international joint ventures in the area of biotechnology, and particularly...

614-227-4297
Peter Draugelis, Business Corporate Matters, Legal professional, dinsmore lawyer
Partner

Peter Draugelis is a Partner in the Corporate Department. Peter's practice covers a broad spectrum of business and corporate matters, including mergers and acquisitions, finance, supply and distributorship agreements, and international business transactions. He advises clients from small entrepreneurs to Fortune 500 companies concerning forming new businesses, strategic partnering relationships, and general business issues that in-house counsel and executives face on a daily basis. 

513-977-8415
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