Exp delivery terms. Incoterms: what is it, how and where is it used

Incoterms 2010

1 Purpose and scope of Incoterms 2 Why are Incoterms being revised? 3 Incoterms 2010 (Incoterms 2010) 4 Classification of Incoterms 2010 5 Rules for domestic and international trade 6 Explanations 7 Electronic communications 8 Insurance coverage 9 Security control and the information required 10 Terminal handling costs 11 Subsequent sales 12 Changes to Incoterms 13 Terms 14 Structure of Incoterms 2010 15 How to use the rules of Incoterms 2010

Purpose and scope of Incoterms

The purpose of Incoterms is to provide a set of international rules for the interpretation of the most widely used trade terms in the field of foreign trade. In this way, the uncertainty of different interpretations of such terms in different countries can be avoided or at least greatly reduced.

Often the parties entering into a contract are unfamiliar with the different trading practices in their respective countries. This can lead to misunderstandings, disagreements and litigation, resulting in a waste of time and money. To resolve all these problems, the International Chamber of Commerce published for the first time in 1936 a set of international rules for the precise definition of trade terms. These rules are known as Incoterms 1936.

Amendments and additions were later made in 1953, 1967, 1976, 1980, 1990, 2000 and currently in 2010 (effective January 1, 2011) to bring these rules into line with modern international trade practices.

It should be emphasized that the scope of Incoterms is limited to matters relating to the rights and obligations of the parties to a sales contract in relation to the delivery of goods sold (the word “goods” here means tangible goods, excluding intangible goods such as computer software).

Incoterms are not international treaty. But in the case of reference to the Incoterms delivery basis in the contract, various state bodies, primarily customs, as well as state courts considering foreign economic disputes, are obliged to take into account the provisions of Incoterms. In some countries, Incoterms have the force of law, and this is especially important when concluding supply contracts with residents of these countries, in terms of determining the applicable law to the transaction.

Having concluded a deal with partners from other countries and not wanting to be guided by Incoterms, this circumstance should be specifically stipulated. In our Russia, Incoterms are advisory in nature, and only contract provisions that have a link to Incoterms have legal force. But, if the contract makes reference to the delivery basis according to Incoterms, but other clauses of the contract contradict the delivery terms used according to Incoterms, then the corresponding clauses of the contract, and not Incoterms, should be applied: it is considered that the parties have established certain exceptions from Incoterms in the interpretation of individual delivery bases.

When choosing one or another delivery basis, it is necessary to strictly adhere to the Incoterms terminology. It is better to indicate a specific term English language(as in Incoterms). When using one or another term, it is necessary to indicate a specific geographical point (and sometimes the exact place, as, for example, in the case of delivery on the ExWorks basis), in which the seller is considered to have fulfilled his obligations to transport the goods, bear the risk of accidental loss or damage to the goods, etc. d.

Be sure to refer to the edition of Incoterms. When concluding a foreign economic contract, it is necessary to clearly define the details of the basic delivery conditions. That is, before specifying the delivery basis in the contract, for example, FOB, it is necessary to carefully study the customs of the port specified in the basis, the charter agreement, in order to accurately allocate costs between the buyer and seller. All delivery bases that require the seller to provide insurance, in the event of insured events, are covered by insurers on minimal terms (cost of goods + 10%).

Incoterms rules represent trade terms abbreviated by the first three letters, reflecting business practice in contracts for the international sale of goods. Incoterms rules mainly define the responsibilities, costs and risks involved in delivering goods from sellers to buyers.

Why are Incoterms being revised?

The main reason for successive editions of Incoterms was the need to adapt them to modern commercial practice. Thus, during the 1980 revision, the term Free Carrier (now FCA) was introduced to consider frequent cases, when the point of receipt of goods in maritime trade was no longer the traditional FOB point (passing the ship's rail), but a point on land before loading on board the ship, where the goods were stowed in a container for subsequent transport by sea or a combination of different means of transport (the so-called intermodal or multimodal transport).

Further, when Incoterms was revised in 1990, the articles concerning the seller's obligation to provide proof of delivery allowed paper documentation to be replaced by EDI messages, provided that the parties agreed in advance to communicate by email. Needless to say, efforts are constantly being made to improve the drafting and presentation of Incoterms in order to facilitate their practical implementation. For example, in the 2000 amendments, significant changes were made in the area of ​​customs clearance and customs payments under the terms FAS and DEQ; and in 2010, the terms: DDU, DAF, DEQ, DES were completely excluded from Incoterms 2010.

Incoterms 2010 (Incoterms 2010)

Updated international rules on the interpretation of the most commonly used trade terms in international trade

Incoterms 2010 came into force on January 1, 2011. The advantage of Incoterms 2010 rules is that they have a wider scope of application. The version of the Incoterms Rules as amended by Incoterms 2000 was used when concluding a foreign trade contract, while the 2010 edition will allow the application of these Rules in international and domestic trade within one state or integration associations such as the EU, CIS and others.

Two new rules in Incoterms 2010 (Incoterms 2010) - these are DAT and DAP - replaced the rules DAF, DES, DEQ, DDU in Incoterms Incoterms 2000 (Incoterms 2000) Thus, the number of rules in Incoterms 2010 was reduced from 13 to 11. This was achieved the introduction of two new rules that can be used regardless of the agreed modes of transport - DAT - delivered at the terminal, and DAP - delivered locally - for Incoterms 2010. In both new rules, delivery is made to the named destination: in DAT, at the disposal of the buyer unloaded from arriving vehicles (as in DEQ 2000), and in DAP, at the disposal of the buyer, but ready for unloading (as in DAF - Delivered at Frontier, DES, DDU - Delivered Duty Free - Incoterms 2000 rules). These new rules made the Incoterms 2000 DES and DEQ rules redundant. The reference to the terminal in the term DAT (Delivered at Terminal) may be at the port, and therefore the term DAT can safely be used in cases where Incoterms 2000 DEQ (Delivered Ex Terminal) was used.

Likewise, the arriving "vehicle" in the term DAP (Delivered at Destination) could be a ship, and the agreed destination the port of destination: therefore, DAP (Delivered at Destination) could safely be used in cases where the Incoterm term was used 2000 DES (Delivered Ex Ship). These new rules, like their predecessors, are “delivered terms”, i.e. The seller bears all costs (other than import clearance costs, if applicable) and risks associated with delivering the goods to the agreed destination.

The new rules take into account the requirements of modern container transport, additions have been made to the terms FOB, CFR and CIF - now Incoterms can choose the correct term for a trade contract by introducing new rules for each term.

Incoterms 2010 classification

The 11 rules of Incoterms 2010 were divided into two groups (in Incoterms 2000 there were 4 groups):

Incoterms 2010 rules for any type of transport

EXW - Ex factory

FCA - Free Carrier

CPT - Carriage paid to

CIP - Carriage and insurance paid until

DAT - Delivered in the Terminal

DAP - Delivery on site

DDP - Delivered Duty Paid

Incoterms 2010 rules for sea and inland waterway transport

FAS - Free along the side of the ship

FOB - Free on board

CFR - Cost and Freight

CIF - Cost, Insurance and Freight

Incoterms 2010 rules for any mode of transport include seven rules that can be used regardless of the chosen mode of transport and regardless of whether one or more than one mode of transport is used for transportation, this type includes: EXW, FCA, CPT, CIP, DAT, DAP and DDP. They can be used even in the absence of sea transportation. It is important to remember, however, that these rules can be used in cases where the ship is used for part of the transport. Incoterms 2010 rules for sea and inland waterway transport are used when the place of dispatch and the place to which the goods are transported to the buyer are both ports. FAS, FOB, CFR and CIF rules apply to this type of delivery. Also, changes were made to the last three rules by the 2010 edition of Incoterms, all references to the ship's railing as a point of delivery were omitted in favor of the term “on board” the ship. This more accurately reflects modern commercial realities.

Rules for domestic and international trade

Incoterms have traditionally been used in international sales contracts when goods cross a border. In various parts of the world, the creation of trade unions, such as the European Union, has made visible control over goods as they pass through the borders of their respective parties less important. Therefore, the subheadings of the Incoterms 2010 rules explicitly state that these rules can be used both in contracts for the international sale of goods and in domestic sales contracts. As a result, the Incoterms 2010 rules clearly emphasize in a number of points that the obligation to carry out export-import formalities exists only when applicable. Two developments convinced the ICC that it was timely to move in this direction. Firstly, merchants widely use Incoterms rules in domestic sales contracts. Secondly, there is a growing desire in the United States to use Incoterms in domestic trade instead of the shipping and delivery terms previously enshrined in the US Uniform Commercial Code.

Explanations

Before each Incoterms 2010 term you will find explanations. They highlight the main points for each Incoterm, for example: when they should be used, when risk passes, how costs are allocated between seller and buyer. These clarifications do not form part of the current Incoterms 2010 rules and are intended to assist the user in carefully and efficiently selecting the appropriate international trade term for a particular transaction.

Electronic communications

Previous versions of the Incoterms rules defined documents that could be replaced by electronic messages (EDI messages). The new edition of the rules provides for the possibility of replacing all paper documents with electronic forms of documents and electronic records, if agreed upon by the parties. In this case, electronic forms of documents and electronic records will have the same legal significance as documents on paper. This formula facilitates the evolution to new electronic procedures during the Incoterms 2010 period.

Insurance cover

The Incoterms 2010 Rules represent the first version of Incoterms since the revision of the London Insurers' Rules (the Institute Cargo Clauses) and take into account changes made to these Rules. In Incoterms 2010, information regarding insurance obligations is placed in clauses AZ/BZ, which deal with contracts of carriage and insurance. These provisions were moved from Articles A10/B10 of Incoterms 2000, which were of a general nature. The wording of Articles AZ/BZ on insurance has also been supplemented to clarify the obligations of the parties in this regard.

Security control and information required for this

Currently, there is increasing concern about the safety of movement of goods, requiring verification that the goods do not pose a threat to human life or their property for reasons not related to its natural properties. Therefore, in articles A2/B2 and A10/B10 of the Incoterms 2010 terms, the issues of cargo safety are highlighted as much as possible, taking into account the differences in legal systems. Responsibilities are shared between the seller and the buyer to implement or assist in the implementation of security control formalities, such as the seizure information system. In particular, the rules provide for mandatory minimum insurance coverage when applying the terms CIP and CIF, which does not include coverage for risks arising from a piracy attack. The seller and buyer will be forced to cooperate, which was not the case before. This is because Incoterms 2010 sets out obligations to provide information in order to achieve export-import clearance (for example, information regarding the supply chain).

Terminal handling costs

According to the Incoterms CPT, CIP, CFR, CIF, DAT, DAP and DDP, the seller is obliged to carry out all necessary measures to ensure the transportation of goods to the agreed destination. When freight is paid by the seller, it is essentially paid by the buyer, since freight costs are usually included by the seller in the total price of the goods. Freight costs sometimes include the costs of handling and moving the goods at a port or container terminal, and the carrier or terminal operator may pass on these costs to the buyer receiving the goods. In such circumstances, the buyer is interested in avoiding double payment for the same service - once to the seller as part of the total price of the goods and a second time separately to the carrier or terminal operator. Incoterms 2010 managed to avoid this by clearly allocating such costs in clauses AB/BB of the relevant terms.

Subsequent sales

In commodity trading, as opposed to finished goods trading, cargo is often sold several times in succession during the period of transport. If this is the case, the seller in the middle of the chain does not “ship” the item because the item has already been shipped by the first seller in the chain. Therefore, the seller in the middle of the chain fulfills his responsibilities towards the buyer, not by shipping the goods, but by providing the shipped goods. For the purpose of clarification, the relevant terms of Incoterms 2010 include the obligation to “provide the goods shipped” as an alternative to the obligation to ship the goods in the corresponding terms of Incoterms.

Changes made to Incoterms

Sometimes parties wish to supplement some Incoterms rule. Incoterms 2010 does not prohibit such an addition, but there are dangers in this regard. To avoid unwanted surprises, it is advisable for the parties to provide in their agreement as precisely as possible the expected effect of such additions. For example, if the contract changes the allocation of costs from the Incoterms 2010 rules, the parties need to make it clear whether they intend to change the point at which risk transfers from the seller to the buyer.

Terms

As in Incoterms 2000, the responsibilities of the seller and buyer are mirrored, with Column A containing the responsibilities of the seller and Column B the responsibilities of the buyer. These responsibilities may be fulfilled directly by the seller or buyer or sometimes, in accordance with the terms of the contract or applicable law, through intermediaries such as carriers, forwarders or other persons nominated by the seller or buyer for a specific purpose.

The text of Incoterms 2010 is self-contained. However, to assist users, the following is the content of the symbols used throughout the text.

Carrier: For the purposes of Incoterms 2010, the carrier is the party with whom the contract of carriage is concluded.

Customs formalities: requirements that must be fulfilled under applicable customs regulations and may include obligations regarding documents, security, information or actual inspection of the goods.

Delivery: This concept is a multifaceted concept in commercial law and practice, but Incoterms 2010 uses it to refer to the point at which the risk of loss or damage to the goods passes from the seller to the buyer.

Shipping documents: this concept is used in the title of paragraph A8. It means a document confirming the delivery (transfer) of goods. For many Incoterms 2010 terms, the shipping document is the transport document or corresponding electronic record. However, according to the terms EXW, FCA, FAS, FOB, a receipt can also be a shipping document. The shipping document may also have other functions, such as forming part of a payment mechanism.

Electronic record or procedure: A collection of information consisting of one or more electronic messages and, when applicable, functionally performing the same function as a paper document.

Packaging: This concept is used for several purposes:

1. The packaging of the goods must comply with the requirements of the sales contract

2. Packaging of the goods means that the goods are suitable for transportation.

3. Storage of packaged goods in a container or other means of transport.

In Incoterms 2010, the concept of packaging includes both the first and second specified meanings. Incoterms 2010 does not regulate the obligations of the parties to pack goods in a container and, moreover, if necessary, it is advisable for the parties to provide for this in the sales contract.

Structure of Incoterms 2010

The following table is a classification of trade terms.

STRUCTURE OF INCOTERMS 2010

EXW Any modes of transport Ex factory (...name of place)

FCA Any modes of transport Free carrier (...name of destination)

FAS Maritime and inland waterway transport Free along the side of the vessel (... name of the port of shipment)

FOB Sea and inland water transport Free on board (...name of port of shipment)

CFR Sea and inland waterway transport Cost and freight (...name of destination port)

CIF Sea and inland waterway transport Cost, insurance and freight (...name of destination port)

CPT Any type of transport Transportation paid to (... name of destination)

CIP Any mode of transport Carriage and insurance paid to (... name of destination)

DAT Any type of transport new!!! Delivery to terminal (...name of terminal)

DAP Any types of transport new!!! Delivery at point (... name of point)

DDP Any mode of transport Delivery with duty paid (... name of destination)

How to use Incoterms 2010 rules

If you wish to apply Incoterms® 2010 (Incoterms 2010), you must clearly indicate this in the contract as follows: “[selected Incoterms term, including named place, in accordance with] Incoterms® 2010” / Incoterms 2010.”

The Incoterm chosen must be appropriate to the goods, the method of transport and, in addition, reflect the extent to which the parties intend to introduce additional obligations, for example, the obligation of the seller or buyer to arrange transportation or insurance. The explanations for each term provide information useful in making these selections. Whatever term is chosen, parties should be aware that the interpretation of their contract may be affected by the customs of ports or other localities.

The chosen Incoterm can only work if the parties have specified a point or port, or better yet, if the parties have specified as precisely as possible such a point or port.

A good example of such a clarification is the following: “FCA 38 Cours Albert ler, Paris, France Incoterms® 2010.” According to Incoterms Ex Works (EXW, Ex Works), Free Carrier (FCA, Free Carrier), Delivered at Terminal (DAT), Delivered at Place (DAP), Delivered Duty Paid (DDP, Delivery Duties Paid), Free Alongside Ship (FAS) and Free on Board (FOB), the named point represents the place where delivery takes place and risk passes to the buyer. According to the Incoterms Carriage Paid To (CPT, Carriage paid to), Carriage and Insurance Paid To (CIP, Transportation and insurance paid to), Cost and Freight (CIF, Cost and Freight) and Cost, Insurance and Freight (CIF, Cost, insurance and freight), the named point is different from the place of delivery. According to these four Incoterms, a named point means the destination to which carriage is paid. For the avoidance of doubt or dispute, references to such a place as a point or destination may be further defined by reference to a precise point at that point or destination.

It should be remembered that Incoterms do not represent a complete sales contract

Incoterms rules only indicate which party to the sales contract must carry out the necessary steps for transportation and insurance when the seller transfers the goods to the buyer, and what costs each party bears. Incoterms rules do not specify the price to be paid or the method of payment. They also do not regulate the transfer of ownership of goods or the consequences of breach of contract. These matters are usually determined in express terms in the contract of sale or in the law applicable to such a contract. The parties, however, must take into account that the strictly binding national law(mandatory local law) may take precedence with respect to any aspect of the sales contract, including the chosen Incoterm.

Sometimes it creates different understandings of the same legal terms and definitions in different legislations. IN modern world, where everything is interconnected and integrated, this is unacceptable. The unequal content of the same legal term in different legislations can lead to misunderstandings and disputes. At the same time, the global world requires unified approaches to the same issues and processes.

All states, including their individual private companies, interact with each other in one way or another. As a rule, this happens within the legal framework, in the scope of agreements concluded between them. However, in different countries the approach to law is also different, as sometimes evidenced by the above-mentioned difference in the content of the same concepts. It is important that this difference does not affect the efficiency and stability of concluded transactions. As is known, the most frequent and natural interaction of various legislations manifests itself primarily in the field of international trade. Here, a different approach to the same terms can lead to losses, which, of course, is unacceptable.

To resolve these issues, the idea arose of developing unified terms that would be interpreted equally by all participants, regardless of national legislation. As a result of painstaking work large quantity Experts in the field of international trade law presented the business community with international rules (in the form of terms) that provide unambiguous interpretations of the most widely used terms in the field of foreign trade. The development of such terms was undertaken by the International Chamber of Commerce - an independent non-profit organization, founded in 1919. The first edition of such rules appeared in 1936 and were subsequently constantly improved. These rules are called Incoterms (“International Commercial Terms”, i.e. “conditions of international trade”).

Incoterms rules are essentially terms that impose on the parties to a contract a certain amount of rights and obligations, provided, of course, that these parties voluntarily wish to use them in their transaction (this is done by indicating in the contract itself that they apply Incoterms rules). This scope of rights and obligations, hidden under the abbreviation (terms) Incoterms, is usually called the “delivery basis,” which determines the most important (but not all) aspects of the transaction.

Please note that Incoterms rules are not intended to completely replace the terms of the contract that is concluded in any case. Many issues remain outside the “delivery basis” agreed upon by the parties. The terms of Incoterms do not indicate for the parties the price to be paid for the goods or the method of payment for them and do not regulate the transfer of ownership of them, as well as the consequences of violation of contractual obligations; the parties to the contract must take care of this independently.

The “delivery basis,” roughly speaking, only determines which of the parties to the transaction carries out the necessary actions for transportation and insurance, when exactly the seller transfers the goods to the buyer, as well as what expenses each party bears.

Today, Incoterms rules are an internationally recognized standard and are used throughout the world in international and domestic contracts for the sale of goods. On the territory of Russia, they fall under the definition of custom, that is, a rule of behavior that has developed and is widely used in any area of ​​business or other activity, not provided for by law, regardless of whether it is recorded in any document. At the same time, according to Part 11 of Art. 1211 Civil Code of the Russian Federation

If the agreement uses trade terms accepted in international circulation, in the absence of other indications in the agreement, it is considered that the parties have agreed on the application to their relations of customs denoted by the corresponding trade terms.

The content of Incoterms is voluntarily recognized by the parties to the transaction unambiguously and, importantly, is binding. All 11 terms of "Incoterms 2010" (currently the latest edition) are grouped into 4 groups and externally represent an abbreviation of three letters. The first of which indicates the place of transfer of obligations from the Seller to the Buyer.

• E- at the place of departure
• F- at the departure terminals of the main transportation, the main transportation is not paid for
• C- at the arrival terminals of the main carriage, the main carriage is paid for
• D- from the buyer, full delivery

In a legal sense this means:

• group E - the seller’s obligations are minimal and limited to making the goods available to the buyer
• group F - the seller’s obligations are limited to sending the goods, the seller does not pay for the main transportation;
• group C - the seller organizes and pays for the transportation of goods, but does not assume the risks associated with transportation
• group D - the seller's costs and risks are maximum (the seller makes the goods available to the buyer at the agreed destination and ensures the arrival of the goods).

Within the groups themselves, the obligations of the parties differ slightly, for example, in group C under the CIF and CIP basis, the seller is obliged to additionally insure the goods, and in group D, for example, under the DDP condition, he is obliged to pay import duties.

The use of Incoterms in contracts is very convenient and effective for the parties to the transaction, as it makes it possible to avoid the costly consequences of accidental misunderstandings, clearly explaining the responsibilities of the parties, distributing costs and risks associated with the supply of goods. The main thing is that the Incoterms rules allow the parties to achieve a uniform commercial understanding of the essence of the transaction by specifying a whole set of dispositive norms in the Civil Code of the Russian Federation, such as, for example,

• Article 457. Time limit for fulfilling the obligation to transfer goods
• Article 458. Moment of fulfillment of the seller’s obligation to transfer the goods
• Article 459. Transfer of risk of accidental loss of goods
• Article 490. Insurance of goods
• Article 510. Delivery of goods

Seven of the eleven Incoterms apply to any mode of transport of the main carriage:

4 Incoterms apply exclusively to maritime transport and transport of territorial waters

Let's summarize.

Incoterms rules are an internationally recognized standard and are used throughout the world in international and domestic contracts for the sale of goods. The 11 terms "Incoterms 2010" are grouped into 4 groups (E, F, C, D) and externally represent an abbreviation of three letters, the first of which indicates the place of transfer of obligations from the Seller to the Buyer.

The use of Incoterms is appropriate and justified if the parties to a transaction wish to standardize the most significant terms of the contract.

Incoterms regulate three most important issues:

1. Sharing transport costs between seller and buyer. That is, the rules determine a specific place when a change in funding occurs
2. The moment is determined when the buyer replaces the seller in bearing responsibility for the risk of loss, damage or accidental destruction of the goods being moved.
3. The date of delivery of goods is determined, that is, the specific moment when the seller must actually fulfill his obligations to transfer the goods either to the seller or to a representative of the transport company.

When concluding a purchase and sale agreement, the parties, along with other conditions, must agree and fix the basis for the supply of goods. The delivery basis sets:

• the Seller's obligations to deliver the goods;
• the moment of transfer of risks of damage and loss of goods from the Seller to the Buyer;
• distribution of costs for transportation, transshipment, insurance and customs clearance of goods between the Seller and the Buyer.

There is a difference between shipping contracts and delivery contracts. In the first case, the Seller transfers the goods to the Buyer at the specified point (or port) in the country of departure. In the second case, the Seller transfers the goods to the Buyer at the agreed port or point in the country of destination. Until this moment, he bears the risk of damage or loss of goods. Shipping contracts, as a rule, meet the interests of both parties to the transaction. They allow the seller to receive the contract price of the goods long before it is delivered to the port (point) of destination. The buyer receives the right to carry out financial transactions with the goods (sell, pledge) from the moment of receipt of the document of title; this is especially important if the Buyer is not a consumer, but a trading company.

In order to systematize all possible forms of the goods supply base and unify the responsibilities of the parties in each option, the International Chamber of Commerce and Industry in 1936 developed standard rules, which were compiled into a special document - Incoterms 1936. For ease of use, each product supply base option is assigned a special code. It consists of the initial letters of English words that define the Seller’s obligations to supply the goods, and, consequently, the costs and risks that are included in the price of the goods. As international trade developed, the necessary additions and changes were made to the Incoterms rules - in 1953, 1967, 1976, 1980, 1990, 2000 and 2010.

1. group E: includes only one option ex works (EXW), from the factory. Under this supply base, the Seller's obligations are minimal and limited to making the goods available to the buyer. The Seller is obliged to transfer the goods to the Buyer in his warehouse, fully ready for transportation, but without paying customs duties and fees. The risk of damage and loss of goods passes from the Seller to the Buyer from the moment the goods are transferred to his disposal;

2. group F: includes three main delivery bases:

• FCA - free carrier (named point), i.e. freely from the carrier at the specified point in the country of departure. The Seller is obliged to load the goods onto a vehicle provided by the Buyer - at its warehouse, or deliver it to the carrier’s terminal. The risks of damage or loss of cargo pass from the Seller to the Buyer from the moment the goods are loaded onto the vehicle provided by the Buyer or delivered to the carrier’s terminal.
• FAS - free alongside ship (named port of shipment)- freely along the side of the vessel provided by the Buyer at the designated port of loading. The seller is obliged, at his own expense, to deliver the goods to the pier along the side of the vessel, within the range of shore (ship) cargo facilities. The risks of damage and loss of cargo pass from the Seller to the Buyer at the time of delivery of the goods to the pier along the side of the vessel.
• FOB - free on board (named port of shipment)- freely on board the vessel provided by the Buyer at the designated port of loading. The seller is obliged to deliver the goods to the port at his own expense and load them on board the ship. The risks of damage and loss of cargo pass from the Seller to the Buyer from the moment the goods cross the ship's rails.

FOB base has two varieties. FOB and trimmed (stowed) - in this case the Seller is obliged not only to load the goods onto the ship, but also to pay for the trimming (stowing) of the cargo. FOB liner terms - when transporting cargo on liner terms, the shipowner organizes and pays for cargo operations at the ports of loading and unloading. The corresponding costs are included in the freight rate;

3. Group C includes four main types of supply base:

• CFR - cost and freight (named port of destination). The price of the goods includes the cost of the goods themselves and freight to the specified port of destination. The seller is obliged to deliver the goods to the port, load them on board the vessel chartered by him for this purpose and pay the freight.
• CIF - cost, insurance and freight (named port of destination). The price of the goods includes the cost of the goods themselves, its insurance for the duration of transportation between the ports specified in the bill of lading, and freight. The Seller must deliver the goods to the port of departure, charter a ship, load the goods on the ship, insure the goods during transportation in favor of the Buyer and pay freight to the port of destination.

The risks of damage and loss of cargo under CFR and CIF transactions transfer from the Seller to the Buyer at the moment the cargo passes the ship's railings (handrails) at the port of loading.

A variation of these transactions is the base for the supply of goods on CFR (CIF) liner terms. As already noted, when transporting on liner terms, the shipowner organizes, pays and includes in the freight rate the cost of loading and unloading cargo. Therefore, with the goods delivery base CFR (CIF) liner terms, the Seller must pay in the freight rate not only the transportation of the goods to the port of destination, but also its unloading at this port to the warehouse.

• CPT - carriage paid to (named point destination), i.e. transportation is paid to the specified point in the country of destination. Unlike transactions based on CFR, the Seller pays not only sea freight, but also the delivery of goods through the territory of the country of destination to the agreed point.
• CIP - carriage, insurance paid (to named point), i.e. transportation and cargo insurance are paid to the agreed point in the country of destination. Unlike CIF, the Seller pays not only sea freight and insurance of the cargo during its sea transportation (or river-sea transportation), but also the delivery of the cargo to its destination internal views transport and cargo insurance for the period of such transportation.

The risks of damage and loss of cargo under CPT and CIP transactions are transferred from the Seller to the Buyer from the moment the goods are transferred by the Seller to the first carrier. Delivery of goods under these conditions (CPT or CIP) may also provide that the Seller at the agreed destination is obliged to unload the goods into a warehouse if this is stipulated in the contract.

4. group D: the Seller’s costs and risks are maximum, since he is obliged to make the goods available to the Buyer at the agreed destination (to ensure arrival). The group consists of three supply base options:

• DAT - delivered at Terminal (named terminal of destination): delivery to the terminal in the exporter's country. The risks of damage and loss of cargo are transferred from the Seller to the Buyer from the moment the goods are transferred to the Buyer’s terminal. Payment of import duties and taxes is the responsibility of the Buyer.
• DAP - delivered at point (named point of destination): delivery to the destination specified by the Buyer, duty not paid. The seller pays all costs for delivering the goods to the agreed destination, except for customs duties. The risks of damage and loss of cargo pass from the Seller to the Buyer at the moment the cargo is delivered at the agreed destination.
• DDP - delivered duty paid (named point of destination): The only difference from the DAP base is that customs duties and taxes in the destination country are paid by the Seller.

Differences between the new edition of INCOTERMS 2010 and the previous INCOTERMS 2000:

• Terms: DAP and DAT: In Incoterms 2010, the number of terms was reduced from 13 to 11. But at the same time, two new provisions were created (DAP - delivered at place, DAT - delivered at terminal) that can be used as multimodal. Four of the least used terms in practice have been eliminated (DAF, DES, DEQ, and DDU).
• The term DAT (delivery to terminal) replaces the term DEQ: the goods are made available to the buyer unloaded from the arriving vehicle. DAT, unlike DEQ, is applicable for multimodal transport. According to logistics experts, delivery to the DAT terminal is most consistent with logistics practices at the port.
• The term DAP (delivered to point) is general position, in which it is important to accurately indicate the destination. The term DAP replaces three terms: DAF, DES, DDU, and provides that the goods are provided to the buyer ready for unloading (in our conditions for reloading under customs control, or for customs clearance).

Incoterms are international rules for the interpretation of terms widely used in foreign private trade. They are presented in the form of a dictionary and primarily concern the place of transfer of responsibility to the buyer from the seller (franco). Thanks to Incoterms, unambiguous interpretation of terms is ensured. These rules are recognized by both government agencies and private individuals. They are used when concluding standard sales contracts international character provided for by documents that have received international recognition. An example is the standard contract developed by the International Chamber of Commerce.

The first rules were called Incoterms-1936. They were published by the International Chamber of Commerce in 1936. Subsequently, a new edition of Incoterms appeared once a decade, starting in the 50s of the last century. The current text of the rules was published in 2010.

Scope of application

Incoterms regulate such aspects of international trading activities.

• Date of delivery of the contract object. In order to determine the fact of fulfillment of obligations for timely delivery or their violation, the moment when the goods are transferred to the customer personally or through an intermediary, for example, through a transportation organization, is determined.
• The moment when risks pass from the seller to the buyer, that is, circumstances arise in which the goods are damaged or completely destroyed, and financial consequences are created for one of the parties to the contract.
• Distribution of costs for transporting goods between the parties, namely determining the moment at which the costs fall on the buyer.

The following elements of international private trading activities, which are governed by the Vienna Convention or the provisions of applicable law, are not subject to Incoterms rules. These are sanctions for violation of contractual obligations by the parties, conditions for releasing them from liability and the rules by which the transfer of ownership is carried out.

Basic Rules

The terms defined in Incoterms are set out in a clear sequence, from least to most of the obligations to fulfill the basic terms of delivery assigned to the seller.

The application of the rules is subject to this important condition. The contract must necessarily stipulate how the moment of transfer of ownership will be determined when transferring the goods. To avoid any uncertainties, it is advisable to ensure that the time of transfer of risks associated with damage and destruction of goods coincides with the moment of transfer of ownership.

Each term, the interpretation of which is given in the rules, is assigned a name in the form of a three-letter abbreviation. The first of them indicates the moment of transfer of obligations and risks associated with the loss of goods between the parties to the contract and is the basis for the following classification of concepts defined by Incoterms.

• D – group containing the terms DDP, DAP, DAT. They relate to the arrival of goods (arrival), its full delivery and the transfer of obligations to the customer. Until the goods arrive in the country of destination, all risks and expenses for its transportation are borne by the seller.
• C – group of terms CIP, CPT, CIF and CFR. The scope of their application is the transfer of obligations at the arrival terminals for the main transportation paid for by the seller. He is obligated to enter into a contract for the carriage of goods without accepting the risks of unintentional damage or loss.
• F is a group that combines the terms FOB, FAS and FCA. They are about the transfer of obligations at the departure terminals without payment for the main transportation by the seller. The transport company hired by the buyer receives the goods at the disposal of the seller.
• E – a group of terms that regulate the transfer of obligations at the time of shipment of goods. A representative of this group is the concept EXW. The seller bears the obligation to transfer the goods to the buyer from the manufacturer's warehouse. In this case, subsequent loading onto the vehicle and customs clearance of the goods are not carried out by the selling party.

Incoterms, as amended in 2010, contains interpretations of 11 terms, of which 7 apply to transportation by any vehicle, and 4 - exclusively by sea and river.

Terms of transportation by any transport.

• DDP. Delivery is carried out to the destination specified in the contract. At the same time, the goods are cleared of any risks and customs duties.
• DAP. The ordered goods are delivered to the destination specified in the sales contract. The buyer will pay all mandatory import duties and local tax costs.
• DAT. The seller delivers the goods to the customs terminal provided for in the contract and bears the costs of main transportation, insurance and export payments. The buyer carries out customs clearance.
• C.I.P. The goods are delivered to the buyer's carrier by the seller. Transportation costs to the arrival terminal and insurance are borne by the seller. The buyer pays for delivery from the arrival terminal and makes mandatory customs payments.
• CPT. As in the previous case, the goods are delivered by the seller transport organization buyer. Transportation to the arrival terminal is at the expense of the seller. Customs duties and shipping costs from the arrival terminal are the responsibility of the buyer. Insurance, unlike CIP, is paid by the buyer, not the seller.
• . The seller delivers the goods to the carrier hired by the buyer to the departure terminal specified in the contract. Payment of duties levied upon export of goods is carried out by the seller.
• EXW – applicable to cases when the buyer receives goods from the seller’s warehouse specified in the contract. The buyer is responsible for paying duties when exporting goods.

Terms of transportation by sea and river transport

• CIF. The seller delivers to the port of destination specified in the contract and pays for insurance of the main carriage. The buyer bears the costs of unloading and transshipment.
• CFR. As in the previous case, the goods are transported to the port of destination. However, the buyer pays not only unloading and transshipment, but also transportation insurance.
• FOB. The goods are shipped by the seller to the buyer's ship. He is also entrusted with the responsibility for paying for transshipment.
• F.A.S. Delivery is carried out to the ship. In this case, the contract must indicate the port where loading will take place. Loading and handling costs are borne by the buyer.

The current 2010 edition of Incoterms has a number of differences from the previous one (2000). In particular, the term DEQ was replaced by the more general DAT, as well as the terms DDU, DES and DAF were excluded and the term DAP was introduced in their place.

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Incoterms 2010 (English Incoterms, International commerce terms) - on the interpretation of the most widely used trade terms in the field of foreign trade.
International trade terms are the standard terms of an international sales contract that are defined in advance in an internationally recognized document and come into force
from January 1, 2011.
September 16, 2010 International Chamber of Commerce on the use of national and international trade terms. Incoterms 2010 rules
reflect current trends in the development of international trade that have developed since the release of the last edition of the Rules in 2000.
The total number of terms has been reduced from 13 to 11. Also, 2 new terms have appeared in the Rules:
DAT (Delivered at Terminal) and DAP (Delivered at Point).
Besides, a new version contains a short guide to each term to help users of the 2010 Incoterms Rules select the right term. Each Incoterms 2010 term is a three-letter abbreviation.

Terms can be divided into 4 groups:

Group E— Place of departure (Departure):
EXW. Ex Works (specified place): goods from the seller's warehouse.

Group F— Main Carriage Unpaid:
FCA. Free Carrier (specified place): the goods are delivered to the customer's carrier.
F.A.S. Free Alongside Ship (loading port specified): goods are delivered to the customer's ship.
FOB. Free On Board (loading port specified): the goods are loaded onto the customer's ship.

Group C— Main Carriage Paid:
CFR. Cost and Freight (destination port indicated): the goods are delivered to the customer’s port (without unloading).
CIF. Cost, Insurance and Freight (destination port indicated): the goods are insured and delivered to the customer’s port (without unloading).
CPT.Carriage Paid To (specified destination): the goods are delivered to the customer's carrier at the specified destination
C.I.P. Carriage and Insurance Paid to (destination specified): the goods are insured and delivered to the customer's carrier at the specified destination

Group D— Delivery (Arrival):
DAP (Delivered at Place): Delivery at Destination
DAT (Delivered at Terminal): Delivered at Terminal
DDP Delivered Duty Paid (destination specified): the goods are delivered to the customer, cleared of duties and risks

A comment:
INCOTERMS are not an international treaty. But in the case of reference to the INCOTERMS delivery basis in the contract, various state bodies, primarily customs, as well as state courts considering foreign economic disputes, are obliged to take into account the provisions of INCOTERMS. In some countries, INCOTERMS has the force of law, and this is especially important when concluding supply contracts with residents of these countries, in terms of determining the applicable law to the transaction. For example, when concluding a contract for the supply of goods between Russian company and a Ukrainian company when determining the applicable law - the law of Ukraine, then INCOTERMS is subject to mandatory application even in cases where this is not specifically provided for in the contract. Therefore, when concluding a deal with partners from these countries and not wanting to be guided by INCOTERMS, you should specifically stipulate this circumstance. In our country, INCOTERMS is advisory in nature, and only contract provisions that have a link to ICOTERMS have legal force. But, if the contract makes reference to the delivery basis under INCOTERMS, but other clauses of the contract contradict the delivery terms used according to INCOTERMS, then the corresponding clauses of the contract should be applied, and not INCOTERMS: it is considered that the parties have established certain exceptions from INCOTERMS in the interpretation of individual delivery bases.

When choosing one or another delivery basis, it is necessary to strictly adhere to the INCOTERMS terminology. It is better to indicate the specific term in English (as in INCOTERMS). Applying
one or another term, it is necessary to indicate a specific geographical location (and sometimes exact location as, for example, in the case of delivery on the ExWorks basis), in which the seller is considered to have fulfilled his obligations to transport the goods, bear the risk of accidental loss or damage to the goods, etc. Be sure to refer to the edition of INCOTERMS. When concluding a foreign economic contract, it is necessary to clearly define the details of the basic delivery conditions. That is, before specifying the delivery basis in the contract, for example FOB..., it is necessary to carefully study the customs of the port specified in the basis, the charter agreement, in order to accurately allocate costs between the buyer and the seller. All delivery bases that require the seller to provide insurance, in the event of insured events, are covered by insurers on minimal terms (cost of goods + 10%).

INTRODUCTION
Incoterms rules represent trade terms abbreviated by the first three letters, reflecting business practice in contracts for the international sale of goods.
Incoterms rules mainly define the responsibilities, costs and risks involved in delivering goods from sellers to buyers.

HOW TO USE INCOTERMS 2010 RULES

1. By incorporating Incoterms® 2010 into your sales contract.
If you wish to apply Incoterms® 2010 (Incoterms 2010), you must clearly indicate this in your agreement.

2. By choosing the appropriate Incoterm.
The Incoterm chosen must be appropriate to the product, the method of transportation and, in addition, reflect the extent to which the parties intend to introduce additional obligations, for example, the obligation of the seller or buyer to arrange transportation or insurance. Each term contains information useful for making such a choice. Whatever term is chosen, parties should be aware that the interpretation of their contract may be affected by the customs of ports or other localities.

3. By identifying the point or port as precisely as possible.
The chosen Incoterm can only work if the parties have specified a point or port, or better yet, if the parties have specified as precisely as possible such a point or port.
A good example of such a clarification is the following; "FCA 38 Cours Albert ler, Paris, France Incoterms® 2010".
According to Incoterms Ex Works (EXW, Ex Works), Free Carrier (FCA, Free Carrier), Delivered at Terminal (DAT), Delivered at Place (DAP), Delivered Duty Paid (DDP, Delivery Duties Paid), Free Alongside Ship (FAS) and Free on Board (FOB), the named point represents the place where delivery takes place and risk passes to the buyer. According to the Incoterms Carriage Paid To (CPT, Carriage paid to), Carriage and Insurance Paid To (CIP, Transportation and insurance paid to), Cost and Freight (CFR, Cost and Freight) and Cost, Insurance and Freight (CIF, Cost, insurance and freight), the named point is different from the place of delivery. According to these four Incoterms, a named point means the destination to which carriage is paid. For the avoidance of doubt or dispute, references to such a place as a point or destination may be further defined by reference to a precise point at that point or destination.

4. It should be remembered that Incoterms do not represent a complete sales contract.
Incoterms rules only indicate which party to the sales contract must carry out the necessary steps for transportation and insurance when the seller transfers the goods to the buyer, and what costs each party bears. Incoterms rules do not specify the price to be paid or the method of payment. They also do not regulate the transfer of ownership of goods or the consequences of breach of contract. These matters are usually specified in express terms in the contract of sale or in the law applicable to such a contract. Parties should, however, be aware that mandatory local law may take precedence with respect to any aspect of the sales contract, including the chosen Incoterm.

MAIN FEATURES OF INCOTERMS 2010

1. Two new Incoterms - DAT(Delivered at Terminal) and DAP (Delivered at Destination) - replaced the following Incoterms 2000 terms: DAF (Delivered at Frontier), DES
(Delivered Ex Ship), DEQ (Delivered Ex Quay) and DDU (Delivered Duty Free)

The number of Incoterms has been reduced from 13 to 11. This has been made possible by the inclusion of two new terms that can be used regardless of the agreed mode of transport, namely DAT (Delivered at Terminal) and DAP (Delivered at Destination) in place of the Incoterms 2000 terms. DAF (Delivered at Frontier), DES (Delivered Ex Ship), DEQ (Delivered Ex Quay) and DDU (Delivered Duty Free). According to these two new terms, delivery is carried out at the agreed place of destination: under the term DAT (Delivery at Terminal) by placing the goods at the disposal of the buyer unloaded from the arriving vehicle (as was previously under the term DEQ (Delivered Ex Quay); under the term DAP (Delivery at the place of destination) also by placing the goods at the disposal of the buyer, but ready for unloading (as was previously the case under the terms DAF (Delivered at Frontier), DES (Delivered Ex Ship) and DDU (Delivered Duty Free).
These new rules make Incoterms 2000 DES (Delivered Ex Ship) and DEQ (Delivered Ex Quay) rules redundant. The reference to the terminal in the term DAT (Delivered at Terminal) may be at the port, and therefore the term DAT can safely be used in cases where Incoterms 2000 DEQ (Delivered Ex Terminal) was used.
Likewise, the arriving "vehicle" in the term DAP (Delivered at Destination) could be a ship, and the agreed destination the port of destination: therefore, DAP (Delivered at Destination) could safely be used in cases where the Incoterm term was used 2000 DES (Delivered Ex Ship). These new rules, like their predecessors, are “delivered terms”, i.e. The seller bears all costs (other than import clearance costs, if applicable) and risks associated with delivering the goods to the agreed destination.

2. Classification of 11 terms of Incoterms 2010
The eleven terms of Incoterms 2010 can be divided into two separate groups:

RULES FOR ANY TYPE OR TYPES OF TRANSPORT

RULES FOR MARINE AND INLAND WATER TRANSPORT

The first group includes seven terms that can be used regardless of the chosen method of transportation and regardless of whether one or more modes of transport are used. This group includes the terms EXW (Ex Works), FCA (Free Carrier), CPT (Carriage Paid to), CIP (Carriage and Insurance Paid to), DAT (Delivered at Terminal), DAP (Delivered at Destination) and DDP ( Delivered with duties paid). They can be used even if there is no sea transport at all. However, it is important to remember that these terms can be applied when a ship is partially used for transportation.
In the second group of terms of Incoterms 2010, both the point of delivery and the place to which the goods are transported by the buyer are ports, and therefore these terms are called “maritime and inland water rules”. This group includes the terms FAS (Free Alongside Ship), FOB (Free On Board), CFR (Cost and Freight) and CIF (Cost, Insurance and Freight). The last three terms omit any reference to the ship's rail as a point of delivery, since the goods are considered to be delivered when they are "on board" the ship. This more accurately reflects modern commercial reality and eliminates the notion that risk moves back and forth relative to an imaginary perpendicular line.

3. Rules for domestic and international trade
Incoterms have traditionally been used in international sales contracts when goods cross a border. IN various parts Since then, the creation of trade unions, such as the European Union, has made visible controls over goods as they pass through the borders of their respective parties less important. Therefore, the subheadings of the Incoterms 2010 rules explicitly state that these rules can be used both in contracts for the international sale of goods and in domestic sales contracts. As a result, the Incoterms 2010 rules make clear at a number of points that the obligation to carry out export-import formalities exists only when applicable. Two developments convinced the ICC that it was timely to move in this direction. Firstly, merchants widely use Incoterms rules in domestic sales contracts.
Secondly, there is a growing desire in the United States to use Incoterms in domestic trade instead of the shipping and delivery terms previously enshrined in the US Uniform Commercial Code.

4. Explanations
Before each Incoterms 2010 term you will find explanations. They highlight the main points for each Incoterm, for example: when they should be used, when risk passes, how costs are allocated between seller and buyer. These clarifications do not form part of the current Incoterms 2010 rules and are intended to assist the user in carefully and efficiently selecting the appropriate international trade term for a particular transaction.

5. Electronic communications
Previous versions of the Incoterms rules defined documents that could be replaced by electronic messages (EDI messages). In Articles A1/B1 of Incoterms 2010, electronic means of communication are recognized to have the same effect as paper messages if the parties have agreed to this or if this is accepted. This formula facilitates the evolution to new electronic procedures during the Incoterms 2010 period.

6. Insurance coverage
The Incoterms 2010 Rules represent the first version of Incoterms since the revision of the London Insurers' Rules (the Institute Cargo Clauses) and take into account changes made to these Rules.
In Incoterms 2010, information regarding insurance obligations is placed in clauses AZ/BZ, which deal with contracts of carriage and insurance. These provisions were moved from Articles A10/B10 of Incoterms 2000, which were of a general nature. The wording of Articles AZ/BZ on insurance has also been supplemented to clarify the obligations of the parties in this regard.

7. Security control and information required for this
Currently, there is increasing concern about the safety of movement of goods, requiring verification that the goods do not pose a threat to human life or their property for reasons not related to its natural properties. Therefore, in Articles A2/B2 and A10/B10 of the Incoterms 2010 terms, responsibilities are allocated between the seller and the buyer to carry out or assist in the implementation of formalities related to security controls, such as, for example, a seizure information system.

8. Terminal handling costs
According to Incoterms CPT, CIP, CFR, CIF, DAT, DAP and DDP, the seller is obliged to take all necessary measures to ensure the carriage of the goods to the agreed destination.
When freight is paid by the seller, it is essentially paid by the buyer, since freight costs are usually included by the seller in the total price of the goods. Freight costs sometimes include the costs of handling and moving the goods at a port or container terminal, and the carrier or terminal operator may pass on these costs to the buyer receiving the goods. In such circumstances, the buyer is interested in avoiding double payment for the same service - once to the seller as part of the total price of the goods and a second time separately to the carrier or terminal operator. Incoterms 2010 managed to avoid this by clearly allocating such costs in clauses AB/BB of the relevant terms.

9. Subsequent sales
In commodity trading, as opposed to finished goods trading, cargo is often sold several times in succession during the period of transport. If this is the case, the seller in the middle of the chain does not "ship" the item because the item has already been shipped by the first seller in the chain. Therefore, the seller in the middle of the chain fulfills his responsibilities towards the buyer, not by shipping the goods, but by providing the shipped goods. For the purpose of clarification, the relevant terms of Incoterms 2010 include the obligation to “provide the goods shipped” as an alternative to the obligation to ship the goods in the corresponding terms of Incoterms.

CHANGES TO INCOTERMS
Sometimes parties wish to supplement some Incoterms rule. Incoterms 2010 does not prohibit such an addition, but there are dangers in this regard. To avoid unwanted surprises, it is advisable for the parties to provide in their agreement as precisely as possible the expected effect of such additions. For example, if the contract changes the allocation of costs from the Incoterms 2010 rules, the parties need to make it clear whether they intend to change the point at which risk transfers from the seller to the buyer.

STATUS OF THIS INTRODUCTION
This Introduction contains general information on the use and interpretation of Incoterms 2010, which does not form part of these terms and conditions.

EXPLANATION OF TERMS USED IN INCOTERMS 2010
As in Incoterms 2000, the responsibilities of the seller and buyer are mirrored, with Column A containing the responsibilities of the seller and Column B the responsibilities of the buyer. These responsibilities may be fulfilled directly by the seller or buyer or sometimes, in accordance with the terms of the contract or applicable law, through intermediaries such as carriers, forwarders or other persons nominated by the seller or buyer for a specific purpose.
The text of Incoterms 2010 is self-contained. However, to assist users, the following is the content of the symbols used throughout the text.
Carrier: For the purposes of Incoterms 2010, the carrier is the party with whom the contract of carriage is concluded.
Customs formalities
with applicable customs regulations and may include responsibilities regarding documents, security, information or actual inspection of the goods.
Delivery: This concept is a multifaceted concept in commercial law and practice, but Incoterms 2010 uses it to refer to the point at which the risk of loss or damage to the goods passes from the seller to the buyer.

Shipping documents: this concept is used in the title of paragraph A8. It means a document confirming the delivery (transfer) of goods. For many Incoterms 2010 terms, the shipping document is the transport document or corresponding electronic record. However, according to the terms EXW, FCA, FAS and FOB, a receipt can also be a shipping document.
The shipping document may also have other functions, such as forming part of a payment mechanism. Electronic record or procedure: A collection of information consisting of one or more electronic messages and, when applicable, functionally performing the same function as a paper document.

Packaging: This concept is used for several purposes:
1. The packaging of the goods must comply with the requirements of the sales contract
2. Packaging of the goods means that the goods are suitable for transportation.
3. Storage of packaged goods in a container or other means of transport.
In Incoterms 2010, the concept of packaging includes both the first and second specified meanings. Incoterms 2010 does not regulate the obligations of the parties to pack goods in a container and, moreover, if necessary, it is advisable for the parties to provide for this in the sales contract.