History of the Incoterms® rules

 The Incoterms® rules have become an essential part of the daily language of trade. They have been incorporated in contracts for the sale of goods worldwide and provide rules and guidance to importers, exporters, lawyers, transporters, insurers and students of international trade. The idea, first conceived by the International Chamber of Commerce (ICC) in 1921, and brought to fruition with the first Incoterms® rules in 1936, set in motion a long and vibrant history of Incoterms® publications that continues today with Incoterms® 2010, which will go into effect 1 January 2011.

Pre-Incoterms rules

A Trade Terms Committee with the assistance of the ICC National Committees developed the first six rules in 1923: FOB, FAS, FOT, FOR, Free Delivered CIF and C&F, which were the precursor of what would later be known as the Incoterms® rules.   

1936 In a time when industries were usually regulated by local rules of law, ICC’s introduces the Incoterms® standard commercial rules, which was a major step in bringing coherence to a diversity of commercial and judicial systems worldwide.

Revisions

Since their introduction in 1936, Incoterms® rules have been revised periodically to meet the demands of changes in a global trade environment and to reflect prevailing business-to-business practices.

Newest Version The latest revision of the Incoterms® rules reflects major developments and changes throughout the last decade, such as the increased importance of cargo security and the deletion of the former US shipment and delivery terms.         In addition to the 11 rules, Incoterms®2010 includes:  extensive guidance notes and illustrative graphics to help users efficiently choose the right rule for each transaction  new classification to help choose the most suitable rule in relation to the mode of transport  advice for the use of electronic procedures  updates on security-related information requirements advice for the use of the Incoterms® 2010 rules in domestic trade.