Priyanka jadhav incoterms

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  • Waterway/Maritime Terms: FOB, FAS, CFR, CIF-used for water ways only
  • In charge of carrier (and usually forwarder) selectionMain Carriage contracted by sellerMost control over documentsMore work for exporter than F Terms
  • Priyanka jadhav incoterms

    1. 1. International Commercial Terms 2010 Priyanka Jadhav
    2. 2. International Commercial Terms: History Initially created in 1936 by the International Chamber of Commerce (ICC) and have been periodically revised (Incoterms® 2010 is the 8th revision) Current revision (“Incoterms 2010”) to become effective January 2011 These Trade Terms are Short abbreviation for lengthy Contract provisions . New Layout – Divided into two distinct sections  Any Mode Terms: DDP, DAP, DAT, CIP, CPT, FCA, EXW  Waterway/Maritime Terms: FOB, FAS, CFR, CIF  As opposed to 2000 version that began with EXW and progressed to DDP – Least to most risk 11 Terms (Down from 13)  DAF, DES, DDU, & DEQ have been removed and replaced by DAP & DAT respectively
    3. 3. Incoterms: Incoterms are set of international rules of interpretation of most commonly used terms in international trade . Objective :  To achieve uniformity  To Avoid and minimize the uncertainties of trade in different countries Obligations, transfer of risks and allocation of costs in connection to delivery of a consignment from seller to buyer. Up to which place the risks are borne by seller. Up to which place the costs are borne by seller. Which responsibilities are borne by the seller. Which responsibilities are borne by the buyer.
    4. 4. Incoterms 2010 :Departure Main Carriage Unpaid • FCA • EXW • FAS • FOB Group E Group FArrival Main Carriage Paid Group D Group C • DAT • CFR • DAP • CIF • DDP • CPT • CIP
    5. 5. Group E:EXW (Ex works) (…named place of delivery )  Ex means from .Work means factory ,mill or warehouse which are sellers premise.  The only term where the seller /exporter makes the goods available at his own premises to buyer .Seller: Minimum Obligations Buyer :Maximum Obligations• Goods to be made available only at seller • Is responsible for loading goods on truck or premises . container at sellers premises and for subsequent cost and risk . • Arranges for export and Import Licenses Carriage ,risks and cost transfers to Buyers
    6. 6. Group F Terms Main Carriage Unpaid Are considered Seller Friendly The seller /exporter is only responsible to deliver the goods to a carrier named by the buyer.Three types :1. FCA (Free Carrier )2. FAS (Free Alongside Ship )3. FOB (Free On Board ) Seller Responsibility : Buyer Responsibility : • Handles Export Clearance • Contracts for Main Carriage • Handles Pre-carriage • Control over Freight Costs • Named Place on Seller’s Side
    7. 7. 1. FCA (Free carrier ) (…named place of delivery ) u The delivery of goods on truck , rail car or container at the specified point of departure .Seller: Buyer :• Clears the goods for export . • Contracts for Main Carriage.• Pre carriage . • Insurance• Delivers goods to the carrier (transport • Costs and Risks transfers once goods have vehicle )specified by the buyer at the been delivered to the carrier at named pace named place. . Carriage ,Risks and Cost transfers to Buyers
    8. 8. 2.FAS (Free Alongside ship ) (…named port of shipment ) Goods are placed in the dock shed or at the side of the ship , on the dock within the reach of its loading equipment so that they can be loaded aboard the ship at seller expense.Seller: Buyer :• Clears the goods for export . • Loading fees .• Pre-carriage • Contracts for Main Carriage.• Places the goods along side the vessel at • Insurance the “named port of shipment”. • Costs and Risks transfers once goods have• Commonly used in the sale of bulk been placed alongside ship. commodity like oils grains and ore . Carriage ,Risks and Cost transfers to Buyers
    9. 9. 3. FOB (Free on Board ) (…named port of shipment ) u The delivery of goods on board the vessel at the named port of origin (loading) at sellers expense .Seller: Buyer :• Clears the goods for export . • Contracts for Main Carriage• Pre-carriage • Cargo insurance• Is responsible for delivering the goods, on • Costs and Risks transfers once goods have board the ship at the port of shipment . been placed on board of ship. Carriage ,Risks and Cost transfers to Buyers
    10. 10. Group C Terms The seller contracts and pays for carriage . Not responsible for costs and risks once the goods have been shipped . Are considered Buyer Friendly.Three types1. Cost and Freight (CFR )2. Cost Insurance freight (CIF)3. Carriage Paid To (CPT)4. Carriage and Insurance Paid To (CIP) Seller Responsibility : Buyer Responsibility : • Contracts for Main Carriage • Named Place is on Buyer’s side • Handles pre-carriage • Has risk of loss while goods are in • Has control over freight costs transit with carrier selected and paid • Passes risk of loss (delivers) to for by seller. Buyer prior main carriage • Handles export clearance
    11. 11. 1. CFR (Costs and Freight ) (…named port of destination )  The delivery of goods to the named port of destination (discharge ) at sellers expense .Seller: Buyer :• Clears the goods for export . • Onward Carriage by buyer• Pre carriage • Has risk of loss while goods are in transit• Is responsible : with carrier selected and paid for by seller. • For contracting and paying for • Cargo Insurance carriage of the goods . • Risk transfers once goods have been placed on board . Cost transfers to Risk transfers buyers at delivery to buyers at named place
    12. 12. 2.CIF (Costs Insurance Freight ) (..named port of destination ) u The cargo insurance and delivery of goods to the named port of destination (discharge ) at the sellers expense . u Seller is responsible for procuring and paying for marine insurance in the buyer „s name for the shipment .Seller: Buyer :• Clears the goods for export . • Onward Carriage by buyer• Is responsible : • Has risk of loss while goods are in transit • For contracting and paying for with carrier selected and paid for by seller. carriage of the goods . • Cargo Insurance • Insurance of goods Cost transfers to Risk transfers buyers at delivery to buyers at named place
    13. 13. 3. CPT (Carriage Paid To ) (…named place of destination )  The delivery of goods to the named place of destination (discharge ) at sellers expense .  Often used in sales where the shipment is by air fright .Seller: Buyer :• Clears the goods for export. • Has risk of loss while goods are in• Is responsible for : transit. • Carriage of goods to “named • Import Custom clearance place of destination” arranged by seller . • Risk transfers once goods have been delivered to first carrier . Cost transfers Risk transfers to buyers to buyers
    14. 14. 4. CIP (Carriage and Insurance Paid To ) (…named place of destination )  The delivery of goods and the cargo insurance to the named place of destination (discharge ) at sellers expense .Seller: Buyer :• Clears the goods for export. • Has risk of loss while goods are in transit.• Is responsible for : • Import Custom clearance • Carriage of goods and insurance to the “named place of destination” arranged by seller . • Risk transfers once goods have been delivered to first carrier. Risk transfers Cost transfers to Buyers to buyers
    15. 15. D Group Termsu The seller is responsible for all costs associated with bringing goods to the named plaice or portu Are considered to be “Arrival Contracts”u Are “Buyer friendly “Three Types1. DAT (Delivered At Terminal)2. DAP (Delivered At Place )3. DDP (Delivered Duty Paid ) Seller Responsibility : Buyer Responsibility : • Contracts for Main Carriage • Named Place on Buyer’s side • In charge of carrier (and usually forwarder) selection • Handles pre-carriage • Has control over freight costs • In control of documentation • Passes risk of loss (delivers) to Buyer at freight arrival point • Handles export clearance
    16. 16. 1. DAT (Delivered at Terminal ) (….named terminal at port ) u Delivery of goods to the named terminal at the port or place of destination and unloaded .Seller: Buyer :• Clears the goods for export . • Import Custom clearance• Is responsible • Delivery of goods to the named terminal at port or place of destination . • Unload the goods at terminal . Cost and Risks transfers to buyer once goods are made available to buyer .
    17. 17. 2. DAT (Delivered at Place) (named place of destination)  Delivery of goods to the named place of destination .Seller: Buyer :• Clears the goods for export • Onward Carriage• Is responsible • Import Custom clearance • Delivery of goods to the named place of destination buyer side . • Ready for Unloading by seller . Cost and Risks transfers to buyer once goods made available at port .
    18. 18. 3. DDP (Delivered Duty Paid ) (named place of Destination )  Delivery of goods at the named place of destination with import clearance .Seller: Buyer :• Clears the goods for export • Onward Carriage• Is responsible • Delivery of goods to the named place of destination • Goods are ready for Unloading . • Import Custom clearance by seller . Cost and Risks transfers to buyer once goods made available at named destination .
    19. 19. Incoterms 2010 Chart Any Mode Terms Control of Main Carriage Risk of Costs Cost CostsDepartureEXW (Ex-Works) Buyer Buyer BuyerMain Carriage UnpaidFCA (Free Carrier) Buyer Buyer BuyerMain Carriage PaidCIP (Carriage & Insurance Paid To) Seller Seller BuyerCPT (Carriage Paid To) Seller Seller BuyerArrival, Freight PrepaidDAT (Delivered at Terminal) Seller Seller SellerDAP (Delivered at Place) Seller Seller SellerDDP (Delivered Duty Paid) Seller Seller Seller 19
    20. 20. Incoterms 2010 Chart Sea, Inland Waterway Control of Main Carriage Risk of Transport Terms Costs Cost CostsMain Carriage Freight CollectFAS (Free Alongside Ship) Buyer Buyer BuyerFOB (Free on Board) Buyer Buyer BuyerMain Carriage Freight PrepaidCFR (Cost and Freight) Seller Seller BuyerCIF (Cost, Insurance, and Freight) Seller Seller Buyer 20
    21. 21. u Thank You

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