Background... 1 The 5 Basic Questions: What, How, Where, Who, and Why?... 4 What are the Incoterms® rules?.. . 4 How are the Incoterms® rules properly used?... 8 Where do you find the Incoterms® rules?.. . 9 Who is bound by the Incoterms® rules?... 10 Why should importers and exporters use and understand the Incoterms® rules in detail?... 12 Documents for reference Incoterms® 2010 Guidance Notes... 15 Specimen form of ICC Model International Sale Contract.. . 26 How does one choose the right Incoterms® rule? – A decision-making checklist.. . 35 The Incoterms® 2010 rules and documents – documents commonly needed in sale transactions under the Incoterms® rules.. 38 A note on ‘delivery’ under the Incoterms® rules.. . 39 Other common questions. . 40 The Golden Rules of the Incoterms® rules.. 43 Real-life questions received by ICC with responses giving interpretive guidance, prepared by a group of the world’s foremost experts on the Incoterms® rules Incoterms® 2010 – General questions.. . 47 1. Use of ® trademark symbol and letters of credit.. . 47 2. ‘Terminal handling charges’.. . 47 3. Costs of security charges.. . 47 4. Export clearance ‘applicable’ in F-family of rules?.. 49 5. Non-freight costs during transit in C-family of rules.. . 50 6. Stowage of full container loads.. . 51 7. Incoterms® rules not designed to resolve accounting issues such as revenue recognition.... 51 8. Buyer faced with multiple charges from carrier under C-family of rules.... 52 9. Incoterms® 2010 rules do not address pipeline transactions.. . 54 10. Containers going by sea under C-family of rules... 54 11. Goods damaged prior to arrival at departure terminal under C-family of rules.. . 55 12. Global insurance policy... 56 13. Mandatory local law overriding Incoterms® 2010 rules.. . 56 14. ‘Transport documents’ in the Incoterms® 2010 rules... 57 15. ‘Usual proof of delivery’ v. ‘usual transport document’ in FCA, FAS and FOB.. . 58 16. Obligation v. custom for transport documents in C-family of rules.. . 59 Incoterms 1990 – General questions .. .. 61 1. Customs not recognizing the Incoterms® rules.. . 61 2. Should industry standard terms refer to the Incoterms® rules?.. 62 3. The Incoterms® rules as ‘payment terms’ – COD/CAD.. 66 4. The Incoterms® rules and the European Single Market.. 67 5. Bonded goods and bail cover costs.. . 69 6. Letters of credit and the Incoterms® rules.. . 71 7. ‘C + I’ – Interpretation .. 76 8. ‘C’-family of Incoterms® rules v. ‘D’-family of Incoterms® rules... 77 Incoterms® 2010 – Multimodal questions.. 78 17. ‘Seller’s premises’ in FCA. . 78 18. ‘Seller’s means of transport’ in FCA.. . 78 19. ‘First carrier’ in CPT and CIP.. 78 20. Seller using own means of transportation under DAT, DAP and DDP.. 78 21. ‘Terminal’ in DAT... 79 22. Where to unload in DAT?.. 79 23. Buyer does not arrive to collect goods under DAP.. .. 79 24. Documents under DAP and DDP... 80 25. VAT and DDP. . 81 26. Does need for on board transport document rule out FCA for containers?.. . 81 27. Can seller refuse to load buyer’s arriving truck under FCA?.. . 83 28. Who is ‘shipper’ on transport document under FCA?... 84 29. Destination contract with seller unloading, but not at a terminal.... 84 30. Domestic arrival contracts for pre-imported foreign goods – DAP or DDP?.. 85 31. Seller doubts safety of buyer’s arriving truck under EXW... 85 32. Who pays ‘container cleaning charges’ under DAP?..