The International Chamber of Commerce (ICC) developed Incoterms in 1936 and updates them periodically to conform to changing trade practices. Because of these updates, contracts should specify which version of Incoterms they use - e.g., Incoterms 2010.
Trade terms used in different countries may appear identical on the surface, yet they can have different meanings when used internationally. INternational COmmercial TERMS are universal for international trade. All parties involved in international trade use and accept INCOTERMS. They define the key parts of freight forwarding for shipping companies, traders, buyers, sellers and banks, which means that everybody understands the terms. (https://www.tradefinanceglobal.com/freight-forwarding/incoterms/)
Traders and shipping companies everywhere understand and accept INCOTERMS which means that they remove any ambiguity in international trade. Instead of trying to define exactly what you want or expect in a contract, the terms are already defined by the ICC.
Replaced Terms
Parties rarely used DAF, DES and DEQ. Because of this the ICC have replaced them, together with DDU by two new terms (DAT , DAP).
DAF -
Delivered At Frontier (2000)
This term means that the seller delivers when the goods are placed at
the disposal of the buyer on the arriving means of transport not
unloaded, cleared for export but not cleared for import, at the named
point & place at the frontier - but before the customs border of
the adjoining country. To be used when delivering to a land
frontier.
DES -
Delivered Ex Ship (2000)
Seller delivers when goods are placed at the disposal of the buyer on
board the ship, not cleared for import at the named port of
destination. The seller bears all costs & risks in bringing the
goods to the named port before discharging. This term can only be used
when the goods are to be delivered by ocean.
DEQ -
Delivered Ex Quay (2000)
This terms is the same as DES with the exception that the seller is
responsible to place the goods at the disposal of the buyer, not
cleared for import, on the quay (wharf) at the named port of
destination. Seller bears all costs & risks as in DES plus
discharging the goods on the quay. This term can only be used in ocean
transport.
DDU -
Delivered Duty Unpaid (2000)
This term means the seller delivers the goods to the buyer, not cleared
for import, and not unloaded from arriving means of transport at the
named place of destination. The seller bears all costs & risks
involved in bringing the goods to the named place other than "duty"
(which includes the responsibility for customs formalities &
payment of those formalities, duties & taxes) for import into the
country of destination. Buyer is responsible for payment of all customs
& duties & taxes.
New Terms
The two new terms are:
DAT -
Delivered at Terminal (named terminal at port or place of destination)
(2010)
Seller pays for carriage to the terminal, except for costs related to
import clearance, and assumes all risks up to the point that the goods
are unloaded at the terminal.
DAP -
Delivered At Place (named place of destination) (2010)
Seller pays for carriage to the named place, except for costs related
to import clearance, and assumes all risks prior to the point that the
goods are ready for unloading by the buyer.