Incoterms for Apparel Export


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Incoterms for Apparel Export

  1. 1. INCOTERMSAravin Prince Periyasamy M.Tech (Textiles) 0091-9790080302
  2. 2. Incoterms These are Internationally Accepted Commercial Terms defining the respective roles and responsibilities (including costs) of the buyer and seller in the arrangement of transportation and other obligations
  3. 3. Incoterms 2000 First published by the ICC in 1936 ICC (International Chamber of Commerce) Official Rules for the Interpretation of Trade terms. Purpose is to provide a set of international rules for the interpretation of the most commonly used trade terms. 10 categories describing where risks lie between seller and buyer International Commercial Terms (INCOTERMS)
  4. 4. Incoterms – Purpose and Scope  Pricing terms, shipping terms, sales terms  Apply to international trade  Define the rights and obligation of the parties to the contract of sale with respect to the delivery of goods sold.
  5. 5. Four Groups of Incoterms Less More Control 1) “E” group Control 2) “F” groupSeller Buyer 3) “C” group More Less 4) “D” group Control Control 5
  6. 6.  The “E”-term is the term in which the seller’s obligation is at its minimum. Seller delivers when goods placed at disposal of buyer
  7. 7. Incoterms 2000 The “F” –terms require the seller to deliver goods for carriage as instructed by the buyer. FCA FAS FOB
  8. 8. Incoterms 2000 The “C” –terms require the seller to contract for carriage at his expense – to a specified point. CFR CIF CPT CIP
  9. 9. Incoterms 2000 The “D” –terms require the seller to take the goods all the way to destination at the border or within the country of import. DAF DES DEQ DDU DDP
  10. 10. Incoterms Group E - Departure:  EXW. Ex Works (named place) Group F - Main Carriage Unpaid:  FCA Free Carrier (named place)  FAS Free Alongside Ship named loading port)  FOB Free On Board (named loading port) Group C - Main Carriage Paid:  CFR Cost and Freight (named destination port)  CIF Cost, Insurance and Freight (named destination port)  CPT Carriage Paid To (named destination)  CIP Carriage and Insurance Paid to (named destination) Group D - Arrival:  DAF Delivered At Frontier (named place)  DES Delivered Ex Ship (named port)  DEQ Delivered Ex Quay (named port)  DDU Delivered Duty Unpaid (named destination place)  DDP Delivered Duty Paid (named destination place)
  11. 11. In Summary Buyer’s Objective: maximize control of supply chain, use FOB, FCA, or FAS Must name a place after the INCOTERM INCOTERMS are negotiable! INCOTERMS should appear on all commercial documents Establish a close relationship with a forwarder 11