Incoterms 2010: What Are the 11 Rules and How Do They Work?

Incoterms 2010 can change the real cost and risk of a trade deal even when the product price stays the same. A buyer may pay less upfront but take control of freight earlier, while a seller may cover transport costs without carrying the cargo risk to the destination.

In this article, we explain why the rules still appear in contracts, how they differ from Incoterms 2020, and how all 11 terms divide delivery, cost, and risk. You can also use the yTrade platform to compare suppliers, routes, and shipment activity before agreeing to a trade term.

What Is Incoterms 2010 and Why Does It Matter?

Incoterms 2010 is a set of 11 trade rules from the International Chamber of Commerce that divides delivery tasks, costs, and risks between a seller and a buyer, took effect on 1 January 2011 and cut the earlier 13 rules down to 11.

It matters because the rule you pick decides who arranges transport, who clears customs, who pays which charges, and who bears loss or damage.

Once you know how a buyer usually ships, you can compare their trade activity before you agree to a term.

What Is the Main Difference Between Incoterms 2010 and 2020?

The main difference is that Incoterms 2020 updated the same 11 rules instead of replacing them. DAT was renamed DPU, CIP insurance was raised to a higher default level, FCA gained an on-board bill of lading option, and the newer edition set out costs and security duties more clearly.

Here are two major changes from Incoterms 2010 to 2020:

• The name dates the contract: If a term says "DAT," it is Incoterms 2010. If it says "DPU," it is 2020.
• CIP insurance: A buyer on a 2010 CIP contract gets thinner default cover, so you may want to add protection.

What Are the 11 Types of Incoterms for 2010?

The 11 Incoterms 2010 rules are EXW, FCA, CPT, CIP, DAT, DAP, DDP, FAS, FOB, CFR, and CIF. The first seven work for any mode of transport, and the last four apply only to sea and inland waterway transport. Remember that the 2010 list uses DAT, not the DPU term added in 2020.

The 7 Incoterms Rules for Any Mode of Transport

These rules work for road, rail, air, courier, sea, or a combination. They run from the lightest seller duty, EXW, to the heaviest, DDP.

The 4 Incoterms Rules for Sea & Inland Waterway Transport

These apply only when goods are delivered alongside or on board a vessel at a port. They suit bulk and non-containerized cargo, not air freight or courier parcels.

For FOB, CFR, and CIF, their biggest difference is on cost.

The buyer pays freight under FOB, the seller pays it under CFR, and the seller adds minimum insurance under CIF. For containers handed over before loading, FCA often fits the real handover better than FOB.

To confirm a supplier regularly serves your route, you can check their shipment data before you accept a term.

Can You Still Use Incoterms 2010 in 2026?

Yes. You can still use Incoterms 2010 in 2026 when both parties agree and name the edition in the contract. Incoterms 2020 is the current version, so choose inco 2010 on purpose, not because an old template carried it forward.

According to International Trade Administration, contracts using Incoterms 2010 stay valid after 2020 when the parties agree and name the version.

Here is a simple checklist before you sign:

• Write the term in full: rule + named place + Incoterms 2010
• Confirm both sides read the handover point the same way
• Keep the same edition across the contract, invoice, and shipping documents
• Separate who pays freight from where risk transfers

Switching to Incoterms 2020 makes sense for new contracts when you want DPU's wider unloading location, FCA's on-board bill option, or CIP's higher insurance.

Whatever you choose, apply it consistently, and avoid errors like the ones in our guide to common mistakes in trade compliance.

Conclusion

Incoterms 2010 is a set of 11 rules that splits delivery tasks, costs, and risks between seller and buyer. Seven rules work for any transport mode, four apply only to sea transport, and the edition still holds today when both parties name it.

The gap from Incoterms 2020 is small but real: DAT became DPU, and CIP insurance moved to a higher default level. The best rule is the one that matches who controls the freight, who can clear customs, and who should carry the risk. Knowing the rule is half the job, and verified trade data covers the other half.

Frequently Asked Questions

Is Incoterms 2010 still valid?

Yes. Incoterms 2010 can still govern a contract when both parties agree to use it and name the edition in their documents. Incoterms 2020 is the current version, so make sure 2010 is an intentional choice rather than a leftover from an old template.

What is the difference between FOB and CIF under Incoterms 2010?

Under both FOB and CIF, risk passes when the goods are on board the vessel at the origin port. The difference is cost. Under CIF, the seller also pays freight to the destination port and buys minimum insurance, while the buyer still carries the voyage risk.

Do Incoterms 2010 set import duty or customs value?

No. Incoterms 2010 splits delivery and clearance duties, but national law sets customs value, duty, and tax. The term only shows which transport and insurance costs the price includes; the customs authority decides which adjustments apply.

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