Incoterms definition

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Dear Valued Customer,
We would like to inform you about the industry-wide changes to the Incoterms ® 2010 being made by the
International Chamber of Commerce (ICC), as of 1st January 2011. Incoterms define the transport obligations,
costs and risks for parties who buy and sell goods. This revision, the first since 2000, aims to adapt to changes in
global international trade over the last ten years.
The changes is a nutshell are the following.
The number of terms is reduced from 13 to 11 and the number of categories is reduced from 4 to 2 as of January.
The most noticeable changes are that the following terms are removed:
DAF: Delivered At Frontier
DES: Delivered Ex Ship
DEQ: Delivered Ex Quay
DDU: Delivered Duty Unpaid
And the below terms are introduced:
DAT: Delivered At Terminal - to replace DAF, DES, DEQ
DAP: Delivered At Place - to replace DDU
The 11 Incoterms valid in January 2011 are:
Rules for any Mode of Transport (including international and domestic transport)
EXW: ExWorks
FCA: Free Carrier
CPT: Carriage Paid To
CIP:
Carriage and Insurance Paid To
DAT: Delivered At Terminal
DAP: Delivered At Place
DDP: Delivered Duty Paid
Rules for Sea and Inland Waterway Transport
FAS: Free Alongside Ship
FOB: Free On Board
CFR: Cost And Freight
CIF:
Cost, Insurance and Freight
How do these changes affect DHL Express?
It is important to note, that DHL Express uses Billing Terms which are not identical to Incoterms ®.
Incoterms ® are used whenever a commercial transaction of goods takes place based on a contract between the
Seller and the Buyer.
When DHL Express contracts with either the Shipper or Receiver for the transport of those goods, our billing
terms are similar in name but different in purpose. Billing Terms are used to define the contract between the
payer of a shipment and DHL Express in terms of billing conditions.
DTP (Duties & Taxes Paid): this service allows duties and taxes to be charged to the Sender or nominated third
party. DHL Express clears the shipment at destination, pays customs charges, and invoices the duties and taxes
to the account specified on the waybill. This enables the Sender to sell goods on an all-inclusive price basis.
DHL ExpressMagyarország Kft.
1097 Budapest
Fehérakác utca 3.
Phone
Fax
+36 (1) 382 3499
+36 (1) 382 3348
E-Mail info@dhl.hu
www.dhl.hu
DHL Express then invoices the Sender for the administration of this service as well as the duties and taxes
incurred at destination. DTP Billing Term is applied in case of Incoterm DDP.
DTU (Duties & Taxes Unpaid): in case of this service the Recipient pays the customs duties and import VAT,
while the Sender pays transportation costs. DTU Billing Term to be applied in case of Incoterm DAP.
We hope that this short guide helps you to apply the new Incoterm categories in you business.
We remain at your disposal for any questions.
Sincerely,
DHL Express
Budapest, December 2010
DHL ExpressMagyarország Kft.
1097 Budapest
Fehérakác utca 3.
Phone
Fax
+36 (1) 382 3499
+36 (1) 382 3348
E-Mail info@dhl.hu
www.dhl.hu
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