Last Friday saw the official South African launch of Incoterms®2010. From January 1, 2011 there will only be 11 Incoterms – four from the 2000 version have been removed, and two new terms created. The launch coincided with the first training session of its kind in South Africa, hosted by the South African Chapter of the International Chamber of Commerce (ICC) in Sandton. The international launch is scheduled later this month. In essence, Incoterms define the risks and responsibilities of buyers and sellers in terms of their contractual obligations in goods transactions. Incoterms® 2010 are divided into two groups, namely: “Rules for Any Mode or Modes of Transport”, and “Rules for Sea and Inland Waterway Transport”. Seven terms are classifiable under “Rules for Any Mode or Modes of Transport”, while the remaining four relate to “Rules for Sea and Inland Waterway Transport”. An important change in the revision, according to an FTW source, is that the terms now also have application to national trade. “While you have some breathing space you may well want to consider speaking to your commercial bank and your lawyer to ensure that your contacts for 2011 are amended in line with the new and revised Incoterms, so ensuring that your risk is managed and minimised.”
