‘Understanding of Incoterms helps limit risk'

“The survival of
businesses depends
increasingly on
their ability to trade
competitively on world
markets – and as the
‘basic language’ of world
trade, a knowledge and
understanding of the
Incoterms 2010 rules is a
fundamental requirement
for all parties engaged
in this field,” said Mark
Goodger, managing
director of Global
Maritime Learning
Solutions (GMLS). He
was speaking at the
Smart Procurement
World Conference in
Johannesburg last week.
“The new Incoterms
2010 Rules have been
scaled down from 13 to 11
– including two new rules,
DAT and DAP, which
replace the Incoterms 2000
Rules: DAF, DES, DEQ
& DDU – and basically,
break down barriers to
international trade by
ensuring compliance and
eliminating risk,” said
Goodger.
He reiterated that by
understanding the new
rules, companies would
enhance their efficiencies
and cost-effectiveness and
avoid leaving themselves
open to problems and
disputes.
The new rules go to the
heart of trade security,
with the onus on importers
and exporters alike to
ensure compliance in
delivery. He added that it
was particularly important
to note that the term
“delivery” was used in
two different senses in
the Incoterms 2010 rules.
“Firstly, the term is used to
determine when the seller
has fulfilled his delivery
obligation and it is also
used in the context of the
buyer’s obligation to accept
delivery of the goods.”