1. The Professional Standard for International Trade The Professional Standard for International Trade ©2010 Trade Technologies,. All rights reserved. 1

2. Incoterms® 2010 ©2010 Trade Technologies, Inc. All rights reserved.2

3. INCOTERMS® 2010 - Who set the rules? International Chamber of Commerce (ICC)  Founded 1919 in Paris  International representatives from over 120 countries  Conforms with WTO, U.N., G20 ©2010 Trade Technologies, Inc. All rights reserved.3

4. INCOTERMS® 2010 - What are they? ©2010 Trade Technologies, Inc. All rights reserved. 4 Incoterms (International Commercial Terms)  3 Letter trade terms that relate to common sales practices: Standardizes rules Defines responsibility Outlines costs included in each term Reveals gaps in all areas of concern Determines specific delivery point

5. What do they do? STANDARDIZE They provide uniform compliance of all parties, buyer and seller for all types of international and domestic sales transactions DEFINE RESPONSIBILITY They determine what party is responsible for the goods and up to what point. OUTLINE COSTS To determine what fees and charges need to be included in the sales price in addition to the costs of goods REVEAL GAPS What is not specified in the terms? DETERMINE DELIVERY POINT Up to what point do you want your responsibility to end? ©2010 Trade Technologies, Inc. All rights reserved.5

6. Incoterms® 2010 – The Basics Considerations How will the goods be shipped? Who will pay the costs of the transportation and Insurance? Have all the necessary costs been included in the final pricing? What risks are involved with the terms that are being used? What is the exact location point where risk transfers from seller to buyer? ©2010 Trade Technologies, Inc. All rights reserved.6

7. Incoterms® 2010 Common Misconceptions... Incoterms® 2010 Common Misconceptions...  Incoterms do not: o Transfer legal title or ownership of goods. Transfer, title, or ownership process begins with exchange of documents Exchange of money for documents + Delivery of goods per Incoterms® = Title Transfer ©2010 Trade Technologies, Inc. All rights reserved.7