Incoterms. This guideline is also posted on the UNOPS intranet: Main Page Practices Procurement How to guides
|
|
- Brenda Pope
- 7 years ago
- Views:
Transcription
1 Incoterms This guideline is also posted on the UNOPS intranet: Main Page Practices Procurement How to guides Organizational Effectiveness Centre 20 ecember 2006
2 Contents 1 WHAT ARE INCOTERMS WHAT O INCOTERMS SPECIY WHAT ARE THE IERENT INCOTERMS HOW TO CLASSIY THE INCOTERMS HOW TO USE INCOTERMS IN A CONTRACT INCOTERMS AN INSURANCE INCOTERMS AN LINER TERMS INCOTERMS AN PAYMENT OBLIGATIONS BETWEEN SELLER AN BUYER RECOMMENE INCOTERMS AN OTHER TIPS LESSONS LEARNE INCOTERMS 2000: TRANSPORT, OBLIGATIONS, COSTS AN RISKS GLOSSARY O INCOTERMS USE IN THIS GUIELINE What are Incoterms Logistics is defined as all the operations involved in moving from the time they are manufactured until they have been taken over by the end-user. Logistics relates to packing, storing, handling, transit, insurance, custom clearance, etc. or example when purchased for country B are manufactured in country A, moving the from the factory to final destination entails a series of logistics operations, ranging from: - Packing the - Export clearance - Transport from factory to country A port/airport - International transport - Transport from country B port/airport to final destination - Handling - Insurance during transport - Import clearance All these operations include costs, which must be paid either by the buyer or by the seller. In order to avoid misunderstanding and to reduce risks of costly disputes between the buyer and the seller, the ICC (International Chamber of Commerce) has developed a set of international and official rules for the interpretation of trade terms. These terms are called incoterms (International Commercial Terms). References to incoterms 2000 (the latest revision came into effect in 2000) in a sale contract define clearly the parties respective obligations and rights. The incoterms deal only with the relation between the seller and the buyer under the contract of sale. As such they do not apply to the contract of carriage (only the contract of sale). urthermore, they do not cover all aspects of the contract of sale, i.e. they do not provide for all the duties, which parties may wish to include in a contract of sale. The incoterms are a standard coded language understood by everyone involved in international trade: buyers, vendors, forwarders, carriers, custom officials, etc. 2
3 To purchase a handbook with detailed description on incoterms 2000, please see Information on the incoterms can be found at 2 What do incoterms specify The incoterms specify the seller and buyer s obligations in terms of: - Transfer of costs (i.e. from which point the costs will be borne by the buyer) - Transfer of risks (i.e. from which point the risks will be borne by the buyer) - ocuments (i.e. what are the documents to be provided by the vendor and the seller) However, the incoterms do not specify the transfer of property. Since their creation in 1936, the incoterms have been modified regularly in view of the development of the international trade and of the new transport techniques (containers, air transport, etc...). The latest version has applied since 01 January What are the different incoterms There are 13 different incoterms, each being a 3-letter acronym based on the English description (a summary is provided in the table at the end of this document): Incoterms escription EXW Ex Works CA ree Carrier AS ree Alongside Ship OB ree On Bord CR Cost and reight CPT Carriage Paid To CI Cost, Insurance, and reight CIP Carriage and Insurance Paid To A elivered At rontier ES elivered Ex Ship EQ elivered Ex Quay U elivered uty Unpaid P elivered uty Paid The incoterms define three basic elements: - Place: Where the seller delivers the to the buyer - : What the seller pays up to that point of delivery, unless otherwise agreed with the buyer - : When the seller passes the transit risk to the Buyer or each of the 13 incoterms, these 3 elements are defined as follows: EXW - Ex Works (named place) - Place: At the works or warehouse - : The seller packs for export and prepares for dispatch - : Transferred when the are at buyer s disposal 3
4 CA - ree Carrier (named place) - Place: At the place, and to the carrier, named by the buyer - : The seller pays up to the point of delivery of the and for export formalities - : Transferred when the seller delivers the at the named place AS - ree Alongside Ship (named shipment port) - Place: Alongside the ship, and at the shipment port, named by the buyer, or the lighter - : The seller pays for the delivery, export formalities, of the alongside the ship or in lighter - : Transferred when the seller delivers the alongside the ship OB - ree on Board (named shipment port) - Place: On board the ship at the main shipment port - : The seller pays for the delivery, export formalities and loading, of the over the ship s rail - : Transferred when the have passed the ship s rail at the shipment port CR - Cost and reight (named destination port) - Place: On board the ship at the point of shipment for transport to the named port - : The seller pays for all cost and freight, excluding unloading, import clearance and duties, to the named destination port - : Transferred when the have passed the ship s rail at the port of shipment CI - Cost, Insurance and reight (named destination port) - Place: On board the ship at the point of shipment for transport to the named port - : The seller pays for all costs and freight, including marine insurance but excluding unloading, import clearance and duties, to the named destination port - : Transferred when the have passed the ship s rail at the port of shipment CPT - Carriage Paid To (named destination place) - Place: At the first carrier or forwarder for transport to the agreed point at the named place - : The seller pays for all costs and freight, excluding unloading, import clearance and duties, to the named destination place - : Transferred when the have been handed over to the first carrier or forwarder CIP - Carriage and Insurance Paid (named destination place) - Place: At the first carrier or forwarder for transport to the agreed point at the named place - : The seller pays for all costs and freight, including marine insurance but excluding unloading, import clearance and duties, to the named destination place - : Transferred when the have been handed over to the first carrier or forwarder A - elivered At rontier (named place) - Place: At the named frontier place, cleared for export but not for import - : The seller pays for all costs and freight to the named frontier place excluding unloading, import clearance and duties - : Transferred when the are at buyer disposal ES - elivered Ex Ship (named destination port) - Place: On board the ship at the unloading point in the named port of destination - : The seller pays for all costs and freight, to the named destination port, excluding unloading, import clearance and duties - : Transferred when the are delivered to the named destination port, but still onboard the ship 4
5 EQ - elivered Ex Quay (named destination port) - Place: On the quay at the named destination port - : The seller pays for all costs and freight to the named destination port, including discharging on the quay but excluding import clearance and duties - : Transferred when the are unloaded at the named destination port U - elivered uty Unpaid (named destination place) - Place: At the named destination place - : The seller pays for all costs to the named destination place, excluding unloading, import clearance and duties - : Transferred when the are delivered to the named destination place P - elivered uty Paid (named destination place) - Place: At the named destination place - : The seller pays for all costs to the named destination place, including duties, taxes and import charges, but excluding unloading - : Transferred when the are delivered to the named destination place 4 How to classify the incoterms The incoterms can be classified in different ways: By ascending obligation for the seller: EXW, CA, AS, OB, CR, CPT, CI, CIP, A, ES, EQ, U, P. By group: Group E: EXW. Goods delivered in the seller s factory or premises. Group : CA, AS, OB. Main carriage not paid by the seller. Group C: CR, CPT, CI, CIP. Seller pays for the main carriage but does not bear the risks. Group : A, ES, EQ, U, P. Seller pays for the transport and bears the risks. Seller s obligation Group E (EXW) (CA, AS, OB) C (CR, CPT, CI, CIP) (A, ES, EQ, U, P) Buyer s obligation By mode of transport: Some incoterms can only be used for sea transport, for overland transport, or for any mode of transport. Sea transport only: AS, OB, CR, CI, ES, EQ All modes of transport: EXW, CA, CPT, CIP, A, U, P 5
6 Based on the place of transfer of risks: The risks are transferred to the buyer in the sellers country: EXW, CA, AS, OB, CR, CPT, CI, CIP. The risks during the main transport are borne by the buyer. The risks are transferred to the buyer in the final destination country: ES, EQ, U, P. The risks during the main transport are borne by the seller. The risks are transferred to the buyer neither in the seller s country nor in the final destination country: A. The risks are transferred to the buyer at the named frontier. 5 How to use incoterms in a contract In a contract the selected incoterm must be put before the place of delivery or of transfer of costs, e.g. OB Hamburg, Germany. It is also important to specify in the contract that the incoterm is a ICC incoterm to avoid potential confusion with for example the American incoterms (for the OB incoterm in particular), e.g. OB Hamburg, Germany (ICC 2000). It is recommended, in particular for non-english speaking buyers, not to translate the incoterm in the national language (for example avoid C& or CA etc.). The incoterms are flexible and as such the contracting parties may decide to use variants. or example CR landed if the parties decide that the seller should pay for the unloading of the or to include unloading costs in the sea freight, or P, VAT unpaid if the parties wish to exclude from the seller s obligations the value-added tax. However, the ICC gives a clear definition of the term of delivery for each incoterm but not for the variant. or the sake of clarity, it is suggested that the variant be written after the reference to incoterm, e.g. CR Abidjan, Ivory Coast (ICC 2000) landed. It is also important that the trading partners mutually agree of the exact meaning of the variant in order to avoid potential misinterpretation and dispute. 6 Incoterms and insurance UNOPS has signed a global marine cargo insurance and it is therefore recommended not to use the incoterms CI or CIP. However, if using the CI or CIP incoterm, the buyer must take special care to the distribution of responsibilities in case of damages during transport. Under the CI or CIP, the seller has to subscribe to a minimum insurance covering the CI or CIP value plus 10%. This may not be sufficient, i.e. all risks are not covered and the amount to be reimbursed in case of claim might be too low to fully cover a replacement. Therefore, the buyer must clearly specify the insurance coverage and the perils to be covered when using these 2 incoterms. or the perils not covered by the seller s insurance, the buyer might decide to subscribe to a separate insurance. 7 Incoterms and liner terms Incoterms only relate to trade terms used in the contract of sale, thus they do not deal with terms, which may be used, in specific contracts of carriage (terms of various charter parties). With the development of liner transport (transport organized on a regular basis between various seaports), cargo space can be booked directly with the shipping line or through an agent as the shipping line has a fixed sailing date (weekly, every two weeks, monthy, etc.) from each port they sail from. 6
7 Liner terms means that the ship owner bears the costs related to the cargo handling, including loading and landing. However this varies from country to country and from port to port within the same country, and the shipper usually has to pay some of these costs. The parts of the loading and landing costs which are to be borne by the ship owner and the shipper are defined in the liner terms. Therefore, the shipper must check carefully the liner terms, as liner terms depend on the sailing and destination ports. Whereas incoterms are the same regardless of the port, liner terms vary from port to port. 8 Incoterms and payment The main obligation of the buyer is to pay the price as provided in the contract of sale. The main obligation of the seller is to provide the and the commercial invoice together with the payment and shipping documents in conformity with the contract of sale. epending on the type of incoterm, the required documents may differ: Incoterm Group E C Payment and shipping document Invoice, Packing list, CR (orwarder Confirmation of receipt), Invoice, Packing list, CR Invoice, Packing list, B/L (Bill of lading, Airwaybill, or Waybill) marked with reight prepaid Invoice, Packing list, B/L, elivery receipt 9 Obligations between seller and buyer Obligations E X W C A A S O B C R C P T C I C I P A E S E Q U P Loading at seller s premises B S S S S S S S S S S S S omestic precarriage/local cartage B S S S S S S S S S S S S Trade documentation in country of exportation B S S S S S S S S S S S S Customs clearance in country of exportation B S S S S S S S S S S S S Export charges B S S S S S S S S S S S S Transport (Cargo) Insurance S S International main carriage B B B B S S S S S S S S S Unloading at terminal (not Buyer s premises) from arriving mean of B B B B B S B S S B S S S transport* Trade documentation in country of transit/importation B B B B B B B B B B B B S Customs clearance in country of importation B B B B B B B B B B B B S Import charges 7
8 Local cartage/omestic on-carriage* Unloading at buyer s premises B B B B B B B B B B B S B B B B B B B B B B B B S B S B B B S S B B B B B B B *: or CPT, CIP, U, and P, it is assumed that delivery takes place at buyer s premises, which is not the named terminal 10 Recommended incoterms and other tips Recommended incoterms: CA: Considering that UNOPS has joined the long term arrangement for freight with Kühne & Nagel on the assumption that UNOPS would use this freight forwarder for its shipments if proven cost effective and practical, the recommendation in such case would be to use the incoterm CA (ree carrier, named place). CA should be preferred to EXW as this resolves the problem of loading inside the seller s premises or export clearance for the buyer. CA should also be preferred to OB or AS as with the CA incoterms full shipment from port of loading will be under the responsibility of only one entity: the freight forwarder (Kühne and Nagel). CR/CPT: If the choice is for the supplier of the to take care of the freight as well, one should use CR if the are to be shipped to a port or CPT if they are to be shipped to a named point. CR/CPT should be preferred to CIP, CI and to the incoterms of the family considering that UNOPS has signed a global cargo insurance contract providing an exceptional overall coverage. U: or small local purchase orders not requiring import of it is recommended to use U. TIPS: The use of the incoterms in a contract is not an obligation. However, it is highly recommended to use them as they are internationally used and understood by those involved in international trade. Using the incoterms reduces the risks of costly disputes. Be careful to use the right incoterm, i.e. do not use a sea transport incoterm for overland transport. Be careful when using variants in view of the associated risks. Specify ICC together with the selected incoterm to avoid confusion with other existing incoterms. o not translate the incoterm. When liner terms are used, check carefully the liner terms, in particular the distribution of loading and landing costs between the ship owner and the shipper. 11 Lessons learned Incoterms of the group are often considered an easy way to transfer risks to the supplier. Although the supplier has additional responsibilities, the buyer must not assume that this is a solution for eliminating his risks. Below are two examples of problems resolving from purchased under U Terms: 8
9 Example 1: A tender for a shipload of cement requested firms to quote both CR port of discharge & U Customs Warehouse. The lowest offer did not show a significant price difference between the two terms, even though under U the supplier was undertaking additional costs & substantial financial risks. The supplier was requested to confirm that their price was U Customs Warehouse as requested. Such a quote defines that they are required to cover all costs to the warehouse. This was confirmed, and the buyer decided to take advantage of their offer, even though there was a doubt that the supplier really understood their obligations. Unfortunately almost everything that might go wrong, did go wrong: - The ship arrived late, and was blocked 2 weeks in the port, waiting for a berth, as food items had to be discharged. This resulted in the shipping company invoicing the supplier for demurrage. - The discharge was slowed down due to heavy rains, resulting in additional demurrage. - uring discharge, one of the holds got stuck and couldn t be closed during heavy rains, resulting in water damage to a large quantity of cement. - ue to the supplier s lateness in shipping, they did not load the cement into 1.5 ton big-bags as required, planning on doing this in the port of arrival. Unfortunately, this required additional labour, and was subject to additional taxes by the Port Authority. - The supplier claimed that these additional costs, which amounted to over $60,000, were to the account of the buyer. This was contested, pointing out the supplier s obligations under U deliveries. After many months of negotiations between the legal department & the supplier, a compromise was reached whereby the costs were split between the buyer & supplier, as the Legal epartment felt this was less costly than going to arbitration. Lesson learned: If in doubt that a supplier fully understands their financial risks, be sure these are clarified before contracting. Example 2: An order for industrial chemicals was issued to a manufacturer for delivery U to a land-locked country. The were travelling by sea to a West African port, and inland by rail. Payment terms required the consignee to confirm good receipt. The delivery note mentioned some damaged drums, and these were deducted from the invoice, which was paid. A short while later, it was discovered that an error was made on the correct quantity of damaged drums. The supplier was contacted, supplied with a Lloyds Agent s Survey Report & relevant claim documentation against the railroad, and requested to reimburse for the damaged. The supplier contested the report & refused to reimburse. After almost one year of negotiations, including exclusion of the manufacturer from shortlists and refusal to purchase any of their products from trading firms, the firm accepted to reimburse for the losses Lesson learned: When purchasing under U Terms, understand that errors may be made in the field when confirming good receipt. When are delivered to another part of the world it is extremely difficult to be 100% certain that all of the have arrived in good condition & there will not be an insurance claim later. This risk should therefore be taken into consideration when choosing to purchase U. 9
10 12 Incoterms 2000: Transport, obligations, costs and risks Symbol Type (*) Seller Exp Clearance Carrier Imp Clearance Buyer Comments EXW M Carriage of Carriage arranged by the buyer Risk transfer to the buyer once are at buyer disposal Cost transfer to the buyer once are at buyer disposal CA M Carriage of AS S Carriage of OB S Carriage of CR S Carriage of CI S Carriage of CPT M Carriage of CIP M Carriage of A O Carriage of Carriage arranged by the buyer Risk transfer to the buyer once delivered to carrier Cost transfer to the buyer once delivered to carrier Carriage arranged by the buyer Risk transfer to the buyer once placed alongside the ship Cost transfer to the buyer once placed alongside the ship Carriage arranged by the buyer Risk transfer to the buyer once have passed ship s rail Cost transfer to the buyer once have passed ship s rail Carriage arranged by the seller Risk transfer to the buyer once have passed ship s rail Cost transfer to the buyer at port of destination Carriage and insurance arranged by the seller Risk transfer to the buyer once have passed ship s rail Cost transfer to the buyer at port of destination Carriage arranged by the seller Risk transfer to the buyer once delivered to carrier Cost transfer to the buyer at place of destination Carriage and insurance arranged by the seller Risk transfer to the buyer once delivered to carrier Cost transfer to the buyer at place of destination Carriage arranged by the seller 10
11 ES S Carriage of EQ S Carriage of U M Carriage of P M Carriage of * M: Multimodal, S: Sea, O: Overland Risk transfer to the buyer once delivered at frontier Cost transfer to the buyer once delivered at frontier Carriage arranged by the seller Risk transfer to the buyer once placed on board the ship Cost transfer to the buyer once placed on board the ship Carriage arranged by the seller Risk transfer to the buyer once placed on the quay Cost transfer to the buyer once placed on the quay Carriage arranged by the seller Risk transfer to the buyer once placed at buyer disposal Cost transfer to the buyer once placed at buyer disposal Carriage and import clearance arranged by the seller Risk transfer to the buyer once placed at buyer s disposal Cost transfer to the buyer once placed at buyer s disposal 13 Glossary of incoterms used in this guideline Airway Bill: ocument similar to a bill of lading but utilized for the transport of merchandise by airfreight. It shows the title of ownership and the details of being air freighted Bill of Lading (BL): ocument issued by a ship owner to a shipper of. It serves as a receipt for the (description and quantity, suitable notations), evidence of the contract of carriage (terms and conditions of the contract or reference to a charter party if applicable) and document of title (to take delivery of the from the ship) Carriage: The act of carrying, transporting, or conveying Carrier: Individual, partnership, or corporation that transports for compensation Cartage: The act of carrying or conveying in a cart. Charter party: ocument containing all the terms and conditions of the contract between a ship owner and a charterer, and signed by both parties or their agents, for the hire of a ship or the space in a ship Charterer: Person or company who hires a ship from a ship owner for a period of time or who reserves the entire cargo space of a ship for the carriage of from a port of loading to a port of discharge Clearance: ormality needed to obtain authorization from the customs to allow a ship to leave a port or to permit her to discharge her cargo orwarder: irm engaged in arranging to forward parcels of cargo by sea, land or air from one place to another on behalf of its clients Handling: The act of loading, unloading, or moving cargoes 11
12 Hold: Space below the deck of a ship used to carry cargo Incoterms: International Commercial Terms Lighter: Type of barge used to carry to a port part of the cargo of an ocean ship (e.g. when the draught of the ship is too deep to reach the port) Liner Terms: Qualification to a freight rate which means that it consists of the ocean carriage and the cost of cargo handling at the loading and discharging ports according to the custom of those ports. This varies widely from country to country and, within countries, from port to port (in some ports the freight excludes all cargo handling costs while in others the cost of handling between the hold and the ship s rail or quay is included) Multimodal transportation: reight movement involving more than one mode of transportation (ground, air, rail, ocean). (Multimodal is also called Intermodal) Negotiable documents: ocuments, which legally transfer the right of property from one or more persons to others Ship owner: Person or firm that owns one or more ships Shipper: Person or firm who enters into a contract with a shipping line or ship owner for the carriage of Ship s rail: Side of a ship Transit: Conveying of from the port of departure to the port of arrival Waybill: ocument issued by a shipping line to a shipper, which serves as a receipt for the and evidence of the contract of carriage. It resembles a bill of lading, but unlike a B/L, it is not a document of title; it bears the name of the consignee who has only to identify himself to in order to take delivery of the cargo. The purpose of the waybill is to avoid the delays to cargoes, which occur when bills of lading are late in arriving at the discharge port 12
APPENDIX V: INTERNATIONAL COMMERCIAL TERMS (INCO)
APPENDIX V: INTERNATIONAL COMMERCIAL TERMS (INCO) INCOTERMS (INternational COmmercial Terms) 2000, published by the International Chamber of Commerce (2000 pub 560), are the most commonly accepted terms
More informationINCO Terms LIBERTY-TERMINALS.COM INDEX
2055 Col. Cole Drive Post Office Box 2775 Georgetown, SC 29442 U.S.A. Phone: (+1 843-527-3552 Fax: +1 843-527-3554 Email: managament@liberty-terminals.com INCO Terms INDEX Ex Works (EXW)... 2 Free Carrier
More informationINCOTERMS 2000 EX WORKS (EXW)
INCOTERMS 2000 The purpose of Incoterms 2000 is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. Thus, the uncertainties of different
More informationINCO Terms. The seven rules defined by Incoterms 2010 for any mode(s) of transportation are:
INCO Terms INCO Terms The seven rules defined by Incoterms 2010 for any mode(s) of transportation are: EXW: Ex Works (named place of delivery) The seller makes the goods available at its premises. This
More informationDSV Air & Sea Inc. Incoterms 2010 Introduction Guidelines
DSV Air & Sea Inc. Incoterms 2010 Introduction Guidelines Contents Section Page 1 What do I need to know about Incoterms 2010? 3 2 What is Incoterms 2010 and how does it differ from Incoterms 2000? 4 3
More informationINCOTERMS 2010. International Commercial Terms by the ICC (International chamber of commerce)
INCOTERMS 2010 International Commercial Terms by the ICC (International chamber of commerce) Who is responsible and has to pay the damage/loss?? PURPOSE OF INCOTERMS To provide a set of international
More informationTRADE AFRICA Trade Promotion Program
Incoterms 2000 In their sells contract the seller (exporter) and the buyer agree on the conditions of sale: payment on the one hand, delivery on the other. These terms determine at what precise moment
More informationCFR (CNF/C&F) (Cost and Freight) has a long history in the INCOTERMS.
Incoterms - CFR/CIF CFR (CNF/C&F) (Cost and Freight) has a long history in the INCOTERMS. As an INCOTERM, seller passes the risk to the buyer when the cargo crosses the ship's rail at the port of origin.
More informationIncoterms Incoterms EXW ex works Seller ex works ex factory ex mill ex plant ex refinery ex site ex warehouse EXW
INCOTERMS Incoterms, promulgated by the International Chamber of Commerce, is an acronym for International commercial terms, and provide a standard set of definitions for trade terms (also known as delivery
More informationIncoterms 2010 Workshop. November 2010
Incoterms 2010 Workshop AGENDA Introduction to the International Trade Terms Trade Terms: EXW; FCA; FAS; FOB; CFR; CIF Trade Terms: CPT; CIP; DAT; DAP;DDP Important Notes on Obligations, Risks and Exposure
More informationINCOTERMS IN TWO MAJOR GROUPS
INCOTERMS IN TWO MAJOR GROUPS Incoterms has become a famous term in the international freight world. In fact it is a word that is copyrighted by the International Chamber of Commerce (ICC). Following some
More informationINCOTERMS 2010 INTERNATIONAL COMMERCIAL TERMS
INCOTERMS 2010 INTERNATIONAL COMMERCIAL TERMS (CONTRACT OF SALE) Incoterms Key elements of international contracts of sale. They tell the parties what to do with respect to carriage of the goods from buyer
More informationWorld Trade Practices Chapter 14 FCL= full container load LCL= less than full container load (door to door)
Logistics Containerized Cargo Twenty-Foot Equivalent Units (intermodal shipping container) 1 TEU 20 long container 2 TEUs per 40 long container World Trade Practices Chapter 14 FCL= full container load
More information10. Incoterms The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International
10. Incoterms The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) that are widely used in International
More informationINCOTERMS 2010 AN INTRODUCTION
AN INTRODUCTION 1 Copyright CargocandisFürst WHAT THEY ARE Incoterms is an abbreviation of International Commercial Terms Incoterms are published by the International Chamber of Commerce First published
More informationINCOTERMS 2010 INDEX
CHAPTER 30 INCOTERMS 2010 1 CHAPTER 30 INCOTERMS 2010 INDEX Para No TOPIC Page No 30 Introduction 3 30 1 EX Works (EXW) 4 30 2 Free Carrier (FCA) 4 30 3 Free Alongside Ship (FAS) 5 30 4 Free on Board (FOB)
More informationArticle 7 - Incoterms
Article 7 - Incoterms Incoterms 2000 have been updated by Incoterms 2010 and therefore the old post below is now redundant.. Please read the analysis about Incoterms 2010 here.. -------------------------------------------------------------------------------------------------------------------------------
More informationHow To Sell Goods In The Uk
Local National International Quick Reference Guide to Incoterms 2010 Overview The Incoterms rules are an internationally recognized standard and are used worldwide in international and domestic contracts
More informationAustralian Customs Cargo Advice
Australian Cargo Advice Incoterms 2010 Number 2010/13 This notice is to advise that the International Chamber of Commerce (ICC) has revised Incoterms 2000 to reflect changes in international and domestic
More informationIncoterms 2010. The latest update of the Incoterms have entered into force on 01 January 2011, known as Incoterms 2010
The latest update of the Incoterms have entered into force on 01 January 2011, known as Incoterms 2010 The valid Incoterms as from 01 January 2010:- 1. EXW = Ex Works / all modes 2. FCA = Free Carrier
More informationINCOTERMS 2015. The current set of Incoterms is Incoterms 2010. A copy of the full terms is available from the International Chamber of Commerce.
INCOTERMS 2015 An overview International Commercial Terms ( Incoterms ) are internationally recognized standard trade terms used in sales contracts. They re used to make sure buyer and seller know: Who
More informationIncoterms 2010. General mode of transportation
Incoterms 2010 The eighth published set of pre-defined terms, Incoterms 2010 defines 11 rules, reducing the 13 used in Incoterms 2000 by introducing two new rules ("Delivered at Terminal", DAT; "Delivered
More informationINCOTERMS 2010 ANY MODE OF TRANSPORT. EXW (insert named place of delivery) Incoterms 2010
EXW (insert named place of delivery) Incoterms 2010 EXW The only responsibility of the seller is to places the goods at the disposal of the buyer at the seller s premises or at the named place. The buyer
More informationWHAT INCOTERMS 2010 RULES ARE
INCOTERMS NOTES WHAT INCOTERMS 2010 RULES ARE 11 terms of shipment and delivery provided by the International Chamber of Commerce for use in contracts for the business-to-business sales/purchases of tangible,
More informationINTERNATIONAL SHIPPING POLICY 2012
INTERNATIONAL SHIPPING POLICY 2012 The following is a checklist of information that must be listed on any International Purchase Order before it is accepted and processed. Name and invoicing address of
More informationFCA Free Carrier(...named place) Seller Seller Seller Seller. Seller Seller Seller Seller. Seller Seller Seller Seller
E/F Group E (Departure) EXW Exworks (...named place) FCA Free Carrier(...named place) Group F (Main Carriage Not Paid By Seller) FAS Free Alongside Ship(...named of shipment) Free On Board(...named of
More informationEXW (insert named place of delivery) Incoterms 2010
RULES FOR ANY MODE OR MODES OF TRANSPORT EX WORKS EXW (insert named place of delivery) Incoterms 2010 GUIDANCE NOTE This rule may be used irrespective of the mode of transport selected and may also be
More informationIncoterms 2000. English. www.if.fi
Incoterms 2000 English www.if.fi THE TRADE TERMS OF THE INTERNATIONAL CHAMBER OF COMMERCE WHAT IS A TRADE TERM? A trade term is a combination of letters or words, which specifies certain obligations within
More informationINTERNATIONAL TRADE FLOW DIAGRAMS
The structure of Incoterms (Copyright INCOTERMS) : Group E Departure Main Carriage Unpaid Group C : Main Carriage Paid Arrival : EXW Ex Works (... named place) FCA Free Carrier (... named place) FAS Free
More informationLogistically Speaking: Using Delivery Terms to Allocate Supply Chain Risks
Logistically Speaking: Using Delivery Terms to Allocate Supply Chain Risks Allen L. Anderson, Lawyer FEES & BURGESS, P.C. 256/536-0095; anderson@feesburgess.com Jeffrey L. Roth, Lawyer FEES & BURGESS,
More informationIncoterms 2000. SCA Transforest
Incoterms 2000 SCA Transforest EXW Ex works at the buyers disposal at agreed place and time the time the goods are placed at buyers disposal at agreed place and time Bear all costs until at buyers disposal
More informationDiagram: International Commercial Terms
Diagram: International Commercial Terms INTERNATIONAL COMMERCIAL TERMS EXW FAS FCA FOB CFR CIF CIP CPT DAF DDP DDU DEQ DES Ex Works Free Alongside Ship Free Carrier Free On Board Cost and Freight (The
More informationA Guide to the new Incoterms 2010 (effec7ve as of 01/01/2011)
A Guide to the new Incoterms 2010 (effec7ve as of 01/01/2011) Who pays for what? Goods move across interna7onal borders because there has been a sale involving: Seller Buyer Contract of sale should define
More informationCONTENTS. E TERMS Departure Terms EXW Ex Works (... named place of delivery)... 6
2 World Trade Press World Trade Press Illustrated Guide to Incoterms 2010* 800 Lindberg Lane, Suite 190 Petaluma, California 94952 USA Tel: +1 (707) 778-1124 x 3 Fax: +1 (707) 778-1329 www.worldtradepress.com
More informationA Brief Introduction to Logistics
A Brief Introduction to Logistics A Brief Introduction to Logistics The international freight market has a wealth and variety of transport providers to meet the needs of international trading companies
More informationCERTIFIED EXPORT SPECIALIST (CES) Case Study #005 Incoterms 2010 Study Material & Quiz
CERTIFIED EXPORT SPECIALIST (CES) Case Study #005 Incoterms 2010 Study Material & Quiz Incoterms 2010 Study Material Incoterms 2010 Rules International Commercial Terms (Incoterms ) are terms designed
More informationWhat are Incoterms? Any mode of transport: Sea and inland waterway transport (only): CIP - Carriage and Insurance Paid
What are Incoterms? International Commerce Terms (Incoterms) are an internationally recognised standard trade terms that set out buyer and seller responsibilities. Incoterms are maintained and developed
More informationFRAMEWORK AGREEMENT For Supply of Tarpaulins / plastic sheeting for World Vision International disaster response
FRAMEWORK AGREEMENT For Supply of Tarpaulins / plastic sheeting for World Vision International disaster response THIS FRAMEWORK AGREEMENT ("Agreement"), entered into on, by and between: [SUPPLIER NAME]
More informationInternational Terms of Sale: Incoterms Webinar. Miller & Company P.C. Charles W. Ballard Kansas City, Missouri June 14, 2012
International Terms of Sale: Incoterms Webinar Miller & Company P.C. Charles W. Ballard Kansas City, Missouri June 14, 2012 What are Incoterms? Incoterms are internationally agreed-upon definitions for
More information"Cost and Freight " means that the seller delivers when the goods rail in the port of shipment.
- CFR - CIF - CIP - CPT - DAF - DDU - DDP - DEQ - DES - EXW - FAS - FCA - FOB CFR COST AND FREIGHT (...named port of destination) "Cost and Freight " means that the seller delivers when the goods rail
More informationInternational Chamber of Commerce (ICC)
International Chamber of Commerce (ICC) Peak representative world business organization Established 1919 Fundamental mission is to promote trade and investment across frontiers and help business corporations
More informationDLC :Documentary Letter of Credit - Issued and guaranteed by the bank for the full amount of the contract, each shipment paid seperately.
Financial Instruments TRADE DICTIONARY COMMONLY USED TRADING TERMS LC : Letter of Credit - ICC UCP500 guidelines. DLC :Documentary Letter of Credit - Issued and guaranteed by the bank for the full amount
More informationA Practical Approach to Incoterms 2010. Presented By: Lori Koss, Logistics Supervisor for Carestream Health, Licensed US Customs Broker.
A Practical Approach to Incoterms 2010 Presented By: Lori Koss, Logistics Supervisor for Carestream Health, Licensed US Customs Broker. Carestream Health, 2014 p.2 2010 Incoterms Changes Goal was to simplify
More informationDDP Delivered Duty Paid
1 DDP Delivered Duty Paid Delivered Duty Paid means that the seller delivers the goods to the buyer, cleared for import, and not unloaded from any arriving means of transport at the named place of destination.
More informationCIP Carriage & Insurance Paid To
CIP Carriage & Insurance Paid To Carriage and Insurance paid to means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary
More informationICC Guide to Incoterms 2010. By Jan Ramberg
ICC Guide to Incoterms 2010 By Jan Ramberg 33-43AvenueduPrésidentWilson 75116Paris,France 978-92-842-0226-3 Contents Introduction 7 The evolution of the Incoterms rules from 1936 to 2010 8 The ICC Model
More informationThe Training Material on Multimodal Transport Law and Operations has been produced under Project Sustainable Human Resource Development in Logistic
The Training Material on Multimodal Transport Law and Operations has been produced under Project Sustainable Human Resource Development in Logistic Services for ASEAN Member States with the support from
More informationIntroduction to Incoterms 2010. May 9, 2013
Introduction to Incoterms 2010 May 9, 2013 Presenter Theresa Sekula Manager, BDP Corporate Compliance Team Joined BDP in 2005, various roles including marine procurement, operations, and compliance roles
More informationPROFILE INDEX. Introduction 3. Key Definitions 4. Features & Benefits 5. Standard Operating Procedure 6. Service Process 7. Service Undertaking 8
COMPANY PROFILE PROFILE INDEX Introduction 3 Key Definitions 4 Features & Benefits 5 Standard Operating Procedure 6 Service Process 7 Service Undertaking 8 Contact Details 9 Trade Finance Glossary 10 Page
More informationDifferences between 2000 and 2010 Incoterms
Want to start or grow your import/export business? Learn how from industry experts. View our training schedule Differences between 2000 and 2010 Incoterms Incoterms are revised periodically. he current
More informationLOGISTICS EXPERIENCE CUTTING EDGE EXPERTISE
LOGISTICS EXPERIENCE Unmatched knowledge and experience gives us the ability: to deliver vehicles safely to deliver vehicles efficiently to deliver vehicles cost-effectively to deliver vehicles to even
More informationIntroduction to Incoterms 2010. May 17, 2012
Introduction to Incoterms 2010 May 17, 2012 Incoterms 2010 Background Purpose General Notes Important changes for 2010 What Incoterms don t do What Incoterms aren t Recommended Usage Incoterm Groupings
More informationCIF Cost, Insurance & Freight
CIF Cost, Insurance & Freight Cost, Insurance and Freight means that the seller delivers when the goods pass the ship's rail in the port of shipment. The seller must pay the costs and freight necessary
More informationIncoterms. ICC Official Rules for the Interpretation of Trade Terms. Entry into Force 1st January 2000
Incoterms 2000 ICC Official Rules for the Interpretation of Trade Terms Entry into Force 1st January 2000 CONTENTS Foreword 4 Introduction 5 Incoterms 2000 EXW EX WORKS 27 (... named place) FCA FREE CARRIER
More informationINTERNATIONAL TRADE FINANCE SERVICES
INTERNATIONAL TRADE FINANCE SERVICES DOCUMENTARY LETTERS OF CREDIT A PRACTICAL GUIDE CONTENTS LETTERS OF CREDIT SIMPLY DEFINED.............................................2 BENEFITS OF A LETTER OF CREDIT...............................................3
More informationNegotiating with Your Supplier: Terms to Protect Your Company. Empower Your Supply Chain Seminar
6 Negotiating with Your Supplier: Terms to Protect Your Company What are Incoterms? 11 Terms of shipment and delivery for use in contracts for B2B sales/purchase goods Developed by the International Chamber
More informationIncoterms 2000. English. www.if.fi
Incoterms 2000 English www.if.fi THE TRADE TERMS OF THE INTERNATIONAL CHAMBER OF COMMERCE WHAT IS A TRADE TERM? A trade term is a combination of letters or words, which specifies certain obligations within
More informationECG Standard Shipping Terms
ECG Standard Shipping Terms Version 1, September 2011 This document has been prepared by the ECG Maritime & Ports Commission and it is also available on the ECG website (www.ecgassociation.eu) The ECG
More informationThe 13 Incoterms - FAQs about the basics
The 13 Incoterms - FAQs about the basics Why Incoterms? Incoterms are international rules that are accepted by governments, legal authorities and practitioners worldwide for the interpretation of the most
More informationTransport insurance Guide
Transport insurance Guide Whether you are buying or selling goods from or to the international market, there is always a risk that they may be damaged, lost or delayed in transit. Most people in the supply
More informationTamil Nadu Technology Development & Promotion Center
Financial Institutions in Food Business Day 3, Plenary Session I, 1000 Hrs-1115 Hrs, 19 th Dec 2009, MSME DI,Guindy, Chennai Presented By: H M Sathyamurthy Tamil Nadu Technology Development & Promotion
More informationC. ICC INCOTERMS 2000: Report of the Secretary-General (A/CN.9/479) [Original: English]
Part Two. Studies and reports on specific subjects 599 i(i) upon issue of a certificate of Default by a third party (who may without limitation be an independent architect or engineer or a Pre-Arbitral
More informationof: Frontier/Term inal/quay Shipm ent
Any mode of Seller/Exporter 'S RISKS 'S EXW of: D e s tin a tio n : RISKS B u ye r/ e r Ex Works 'S COSTS 'S COSTS EXW, Ex Works (...named place) In Ex Works, the seller/exporter/manufacturer merely makes
More informationSHIPPER S GUIDE. 18/F., 9 Des Voeux Road West,Hong Kong TEL: (852) 2559 7911, FAX: (852) 2581 3336 www.sinotrans-logistics.com
SHIPPER S GUIDE Sinotrans (HK) Logistics Limited have rich experience in shipping agency and freight forwarding and gained a lot of support and advice from our customers in the pass. Nowadays, our services
More informationTrade Rules of the National Hay Association U.S. FORAGE EXPORT COUNCIL
Trade Rules of the National Hay Association U.S. FORAGE EXPORT COUNCIL Adopted May 6, 2014 All Active members and other parties using these rules are free to agree upon any contractual provisions that
More informationThe INCOTERMS rules and their importance
The INCOTERMS rules and their importance Lecturer Ph.D. Candidate Anca LAZĂR 1 Abstract The content INCOTERMS are a set of rules that determine the rights and obligations of the international sales contract,
More informationExport Essentials: Export Pricing, Quoting & Terms of Sale
Export Essentials: Export Pricing, Quoting & Terms of Sale Food Export Association of the Midwest USA & Food Export USA -Northeast Food Export Marketing Forum September 29 th, 2010 Chicago Illinois Agenda
More informationB/E Aerospace Ovens (Nieuwegein)
Import Vendor Compliance Standards: Suppliers Shipping Inbound to the Philippines B/E Aerospace Ovens (Nieuwegein) 2012 April Table of Contents 1. Overview Purpose 3 2. Routing Instructions Routing Guide
More informationNGJ DAT/DAP - DDP Services Policy
NGJ DAT/DAP - DDP Services Policy DDUDDP Contents: NGJ DAT/DAP - DDP Services Policy... 1 DAT/DAP - DDP (Free Domicile / Free House Delivery Services)... 2 Definitions... 3 Free domicile... 3 Free house...
More informationCARRIER ROUTING GUIDE
CARRIER ROUTING GUIDE The following pages are for shipments consigned to General Dynamics NASSCO, San Diego, CA. Failure to comply with these instructions, which incurs additional freight costs, could
More informationADS Chapter 314 Eligibility of Delivery Services
Eligibility of Delivery Services Document Quality Check Date: 08/30/2012 Partial Revision Date: 12/21/2011 Responsible Office: GC/A&A File Name: 314_083012 Functional Series 300 Acquisition and Assistance
More informationLetters of Credit. A Guide to Letters of Credit
Letters of Credit A Guide to Letters of Credit These manuals are created as resource guides for members of Saskatchewan Trade and Export Partnership (STEP). For more information on these manuals please
More informationINTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS PART 4: FREIGHT FORWARDING TABLE OF CONTENTS PAGE INTRODUCTION TO FREIGHT HANDLING AND FORWARDING... 2 CATEGORIES OF FREIGHT... 3 HOW FREIGHT PRICING IS DETERMINED... 4 CARGO INSURANCE...
More informationpayment options letters of credit documentary collections import financing bankers acceptances incoterms
Importers Handbook payment options letters of credit documentary collections import financing bankers acceptances incoterms Importers Handbook Table of Contents Global Trade Services...1 Import Payment
More informationA GuiDe to DoCumentArY Business. Documentary Credits and Collections.
A GuiDe to DoCumentArY Business. Documentary Credits and Collections. Contents. The Documentary Collection. Documentary collection process. 7 General information. 7 The collection order. 8 What you should
More informationInternational Insurance - Part 3. Auto, Employee Benefits & Cargo Coverage
International Insurance - Part 3 Auto, Employee Benefits & Cargo Coverage INTERNATIONAL INSURANCE Auto, Employee Benefits & Cargo Insurance Part 3 Robin Federici, CPCU, AAI, ARM, AINS, AIS, CPIW PO BOX
More informationNew Incoterms Rules in effect January 1, 2011 / Adv. Dan Zaum*
New Incoterms Rules in effect January 1, 2011 / Adv. Dan Zaum* Export transactions generally involve international sales contracts, whose clarity of terms is crucial to avoiding disputes between parties.
More informationFruit Juice Market - 04 April 2014
Fruit Juice Market - 04 April 2014 OVERVIEW: The fruit juice market is presently in a fairly quiet phase largely due to flat demand. Supply is generally reported to be regular with the exceptions of peach
More informationTransportation Terminology
Transportation Terminology The following document includes key terms as they relate to the Transportation Industry. The words/phrases listed in red are the ones that are felt to be the most critical to
More informationCanada Export Requirements Incoterms
Canada Export Requirements Incoterms Topics of Discussion Canada export requirements Terms of sale Insurance Documentation Export Process Are there export restrictions? What are the import conditions?
More informationTLIL5063A Review contracts, insurance, risk and liability in the international freight forwarding context
TLIL5063A Review contracts, insurance, risk and liability in the international freight forwarding context Release: 1 TLIL5063A Review contracts, insurance, risk and liability in the international freight
More informationDOCUMENT PREPARATION UNDER LETTERS OF CREDIT
There are some universal requirements, including those listed below: DOCUMENT PREPARATION UNDER LETTERS OF CREDIT Document: THE LETTER OF CREDIT it is the correct referenced letter of it is still valid
More informationA Guide to Letters of Credit. Import Export
A Guide to Letters of Credit Import Export Table of Contents Introduction 2 Parties Involved in a Letter of Credit 3 What is a Letter of Credit? 4 Advantages and Disadvantages of Using a Letter of Credit
More informationDHL Customs Services Documentation WayBill Commercial Invoice Packing List. Online Solutions DHL Import Online Express DHL ProView
INDEX Introduction What can be imported by mode required Customs process Taxes and fees Operational flow to Brazil What can be imported by to Brazil mode required Customs process Taxes and fees WayBill
More informationIncoterms 2010 may be included in a sales contract if the parties desire the following:
INCOTERMS 2010 USE OF INCOTERMS Incoterms are not laws enacted by governments. Rather, they are rules agreed to by parties to a contract. Also, Incoterms are not implied into contracts for the sale of
More informationFreight Claim Submission Process
TSG Claims 770-995-3036 x260 Claims@shiptsg.com Freight Claim Submission Process All of the following documents must be submitted in support of the freight claim: Fully completed Standard Form for Presentation
More informationShipping and Incoterms
Shipping and Incoterms Practice Guide UNDP Practice Series Shipping and Incoterms Practice Guide Graphic Design, Layout and Print Production: Phoenix Design Aid A/S, Denmark. ISO 9001/ISO 14001/OHSAS
More informationIntroduction of Three New Regulations related to Freight Forwarder in China
服 务 创 造 价 值 Introduction of Three New Regulations related to Freight Forwarder in China Dr. Yang Yuntao Contents New provisions regulating the trial of sea freight forwarding disputes Implementation Opinions
More informationAPL Logistics. Free Carrier (FCA): Improving Supply Chain Performance
APL Logistics Free Carrier (FCA): Improving Supply Chain Performance FCA: Improving Supply Chain Performance 2 FCA: An Introduction Free Carrier (FCA) is an internationally accepted trade term that assigns
More informationChapter 8 EXPORTS and IMPORT FINANCING
Chapter 8 EXPORTS and IMPORT FINANCING Form of Trade Financing Direct form Loan to finance purchases Prepayment by buyers (sometimes in the form of red clause L/C) Delayed payment by sellers Indirect form
More informationTHE FOLLOWING ARE INSTRUCTIONS FROM THE FRONT SIDE OF SEAGATE PURCHASE ORDERS:
THE FOLLOWING ARE INSTRUCTIONS FROM THE FRONT SIDE OF SEAGATE PURCHASE ORDERS: INSTRUCTIONS: Read this entire order form, including the incorporated terms and conditions located at http://www.seagate.com/about/legal-privacy/purchasing-and-pricing/purchase-orders-legal-overview/
More informationTHE CONVENTION ON CONTRACTS FOR THE INTERNATIONAL CARRIAGE OF GOODS WHOLLY OR PARTLY BY SEA (THE ROTTERDAM RULES )
THE CONVENTION ON CONTRACTS FOR THE INTERNATIONAL CARRIAGE OF GOODS WHOLLY OR PARTLY BY SEA (THE ROTTERDAM RULES ) A POSITION PAPER BY THE INTERNATIONAL CHAMBER OF SHIPPING Introduction The exhaustive
More informationSOLAS. Verified Gross Mass Shipper Guide. www.kuehne nagel.com
SOLAS Verified Gross Mass Shipper Guide www.kuehne nagel.com 1 SEA LOGISTICS SOLAS Verified Gross Mass What is SOLAS? SOLAS is part of the IMO (International Maritime Organization, a United Nations Agency)
More informationStep 7 Transportation
Step 7 Transportation Qualifications of a Good Freight Forwarder How to Prepare an International Shipment How to Handle Small Shipments How INCOTERMS Affect Your Shipment Required Shipping Documents Why
More informationTENDER DOCUMENTS PROCUREMENT OF GOODS PRICE QUOTATIONS. Public Procurement Board. Accra, Ghana
TENDER DOCUMENTS PROCUREMENT OF GOODS PRICE QUOTATIONS Public Procurement Board Accra, Ghana October 2003 i Table Contents Table Contents... i Introduction and Instructions... 1 Section I. Invitation for
More informationTHE FOLLOWING ARE INSTRUCTIONS FROM THE FRONT SIDE OF SEAGATE PURCHASE ORDERS:
THE FOLLOWING ARE INSTRUCTIONS FROM THE FRONT SIDE OF SEAGATE PURCHASE ORDERS: INSTRUCTIONS: Read this entire order form, including the incorporated terms and conditions located at http://www.seagate.com/about/legal-privacy/purchasing-and-pricing/purchase-orders-legal-overview/
More informationGENERAL CONDITIONS OF LATVIAN NATIONAL ASSOCIATION OF FREIGHT FORWARDERS and LOGISTIC LAFF
GENERAL CONDITIONS OF LATVIAN NATIONAL ASSOCIATION OF FREIGHT FORWARDERS and LOGISTIC LAFF Effective as of January 1, 2007 These conditions taking effect on January 1, 2007, have been agreed between the
More informationTo separate a composite load into individual shipments and route to different destinations.
Term: Definition: 3PL The transportation, warehousing and other logistics related services provided by companies employed to assume tasks that were previously performed in-house by the client. Also referred
More informationContents. List of Tables. List of Figures. Preface. About the Authors. Acknowledgements
Contents List of Tables List of Figures Preface About the Authors Acknowledgements Glossary xii xiii xv xvii xviii xix 1 International Trade and Inherent Risks 1 Background of International Trade 1 Exporters
More information