ForewordBy Rajat Gupta, ICC ChairmanThe global economy has given business broader access than ever before to markets all over the world. Goods are sold in more countries，in large quantities, and in greater variety. But as the volume and complexity of global sales increase, so do possibilities for misunderstandings and costly disputes when sale contracts are not adequately drafted. The Incoterms rules, the ICC rules on the use of domestic and international trade terms, facilitate the conduct of global trade. Reference to an Incoterms 2010 rule in a sale contract clearly defines the parties respective obligations and reduces the risk of legal complications. Since the creation of the Incoterms rules by ICC in 1936, this globally accepted contractual standard has been regularly updated to keep pace with the development of international trade. The Incoterms 2010 rules take account of the continued spread of customs-free zones, the increased use of electronic communications in business transactions, heightened concern about security in the movement of goods and consolidates in transport practices. Incoterms2010 updates and consolidates the delivered rules, reducing the total number of rules from 13 to 11, and offers a simpler and clearer presentation of all the rules. Incoterms 2010 is also the first version of the Incoterms rules to make all references to buyers and sellers gender-neutral. The broad expertise of ICCs Commission on Commercial Law and Practice, whose membership is drawn from all parts of the world and all trade sectors, ensures that the Incoterms 2010 rules respond to business needs everywhere defines the parties respective obligations and reduces the risk of legal complications. ICC would like to express its gratitude to the members of the Commission, chaired by Fabio Bortolotti (Italy), to the Drafting Group, which comprised Charles Debattista (Co-Chair, France), Jens Bredow (Germany), Johnny Herre (Sweden), David Lwee (UK), Lauri Railas (Finland), Frank Reynolds (US),and Miroslav Subert (Szech Republic), and to Asko Raty (Finland) for assistance with the images depicting the 11 rules.INTRODUCTIONThe Incoterms rules explain a set of three-letter trade terms reflecting business-to-business practice in contracts for the sale of goods. The Incoterms rules describe mainly the tasks, costs and risks involved in the delivery of goods from sellers to buyers.How to use the Incoterms 2010 rules1. Incorporate the Incoterms 2010 rules into your contract of saleIf you want the Incoterms 2010 rules to apply to your contract, you should make this clear in the contract, through such words as, “the chosen Incoterms rule including the named place, followed by Incoterms 2010”.2. Choose the appropriate Incoterms ruleThe chosen Incoterms rule needs to be appropriate to the goods, to the means of their transport, and above all to whether the parties intend to put additional obligations, for example such as the obligation to organize carriage or insurance, on the seller or on the buyer. The Guidance Note to each Incoterms rule contains information that is particularly helpful when making this choice. Whichever Incoterms rule is chosen, the parties should be aware the interpretation of their contract may well be influenced by customs particular to the port or place being used.3. Specify your place or port as precisely as possibleThe chosen Incoterms rule can work only if the parties name a place or port, and will work best if the parties specify the place or port as precisely as possible.A good example of such precision would be:：“FCA 38 Cours Albert 1er, Paris, France Incoterms 2010”.Under the Incoterms rule Ex Works(EXW), Free Carrier(FCA), Delivered at Terminal(DAT), Delivered at Place(DAP), Delivered Duty Paid(DDP), Free Alongside Ship(FAS), and Free on Board(FOB), the named place is the place where delivery takes place and where risk passes from the seller to the buyer.Under the Incoterms rule Carriage Paid to (CPT),Carriage and Insurance Paid to(CIP), Cost and Freight(CFR) Cost, Insurance and Freight(CIF), The named place differs from the place of delivery. Under these four Incoterms rules, the named place is the place of destination to which carriage is paid.Indications as to place or destination can helpfully be further specified by stating a precise point in that place or destination in order to avoid doubt or argument.4. Remember that Incoterms rules do not give you a complete contract of saleIncoterms rules do say which party to the sale contract has the obligation to make carriage or insurance arrangements, when the seller delivers the goods to the buyer, and which costs each party is responsible for.Incoterms rules, however, say nothing about the price to be paid or the method of its payment. Neither do they deal with the transfer of ownership of the goods, or the consequences of a breac