Incoterms pankaj

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  • Set of international rules for the interpretation of the most commonly used foreign trade terms.
  • The seller makes the goods available at his/her premises (works, factory, warehouse, plant) ready for collection. The buyer is responsible for uploading. The buyer pays all transportation costs and also bears the risks for bringing the goods to their final destination. This term places the maximum obligation on the buyer and minimum obligations on the seller.
  • The seller must deliver the goods, cleared for export, to the carrier nominated by the buyer at the named place. Costs for transportation and risk of loss transfer to the buyer after delivery to the carrier. The word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier “Carrier” means any person who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, air, sea, inland waterway or by a combination of such modes.
  • The seller must place the goods alongside the ship at the named port. The seller must clear the goods for export. Suitable only for maritime transport but NOT for multimodal sea transport in containers. This term is typically used for heavy-lift or bulk cargo
  • The seller must load the goods on board of the vessel by the buyer. Cost and risk are divided when the goods are actually on board of the vessel. The seller must clear the goods for export. The seller pays for transportation of goods to the port of shipment, loading cost. The buyer pays cost of marine freight transportation, insurance, uploading and transportation cost from the arrival port to destination.
  • Seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods are loaded on the vessel. The CFR term requires the seller to clear the goods for export. Insurance for the goods is NOT included. This term is formerly known as CNF (C&F, or C+F). This term can only be used for sea and inland waterway transport.
  • The seller has the same obligations as under CFR but with the addition that he has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIF term the seller is only required to obtain insurance on minimum coverage. The CIF term requires the seller to clear the goods for export. This term can only be used for sea and inland waterway transport.
  • The seller pays the freight for the carriage of the goods to the named destination. Risk transfers to buyer upon handling goods over to the first carrier at place of shipment in the country of export. The CPT term requires the seller to clear the goods for export. This term may be used for any mode of transport including multimodal transport.
  • The obligations are the same as under CPT with the addition that the seller must procure insurance against the buyer's risk of loss of, or damage to the goods during carriage. The containerized transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.
  • 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.
  • 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.
  • The seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation. This term may be used irrespective of the mode of transport. This term should not be used if the seller is unable directly or indirectly lo obtain the import licence. Whilst the EXW term represents the minimum obligation for the seller, DDP represents the maximum obligation.
  • Incoterms pankaj

    1. 1. INternational COmmercial TERMS PRESENTED BY | PANKAJ PRABHA |&| ANKITA SINGH| PUNJAB NATIONAL BANK – MANIPAL UNIVERSITY BANGALORE CAMPUS
    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. The Origin and History First published by the International Chamber of Commerce (ICC) in 1936 & since updated in 1953, 1967, 1976, 1980, 1990, 2000 and then the current revision in 2010. Incoterms® reflect world-wide trade practices, as practices change, Incoterms® are revised
    4. 4. Purpose To clarify how functions, costs and risks are split between the buyer and the seller in connection with delivery of goods as required in sales contract Each term clearly specifies the responsibilities of the seller and the buyer Delivery, risks and costs are the critical points
    5. 5. Importance Reduce the uncertainty caused by trade practices in different countries. Simplify the negotiations involved in international commerce. Ensure common understanding of obligations
    6. 6.   Group Term Complete Name Transport Mode E   DEPARTURE EXW   Ex Works Any       F   MAIN CARRIAGE UNPAID FCA   Free Carrier Any   FAS   Free Alongside Ship Sea   FOB   Free on Board Sea       C   MAIN CARRIAGE PAID CFR   Cost and Freight Sea   CIF   Cost Insurance and Freight Sea   CPT   Carriage Paid To Any   CIP   Carriage and Insurance Paid to Any       D   ARRIVAL DAT   Delivered At Terminal Any   DAP   Delivered At Place Any     DDP   Delivered Duty Paid Any  Incoterms 2010 
    7. 7. Changes in Incoterms from 2000 to 2010 New Terms Added 1. DAT – Delivered at Terminal (named terminal/port of Delivery) 2. DAP – Delivered at Place ( named Place of delivery) Terms Eliminated 1.DAF – Delivered at Frontier (named place of delivery) 2.DES – Delivered Ex Ship (named port of delivery) 3.DEQ – Delivered Ex Quay (named port of delivery) 4.DDU – Delivered Duty Unpaid (named place of destination)
    8. 8. The Steps of Global Logistics Main International Transportation 4 Handling Inbound Customs Clearance Duties Final TransportationUnloading Packing Loading Preliminary Transportation Customs Clearance for Export Handling Outbound Insurance 1 2 3 5 6 7 891011
    9. 9. Incoterm  2010 Export- Customs  declaration Carriage to  port of export Unloading  of truck in  port of  export Loading  charges in  port of  export Carriage (Sea  Freight/Air  Freight) to port  of import Insurance Loading on  truck in  port of  import Carriage to  place of  destination Import  customs  clearance,  Imports  Taxes EXW Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
    10. 10. Incoterm  2010 Export- Customs  declaration Carriage to  port of  export Unloading  of truck in  port of  export Loading  charges in  port of  export Carriage (Sea  Freight/Air  Freight) to port  of import Insurance Loading on  truck in  port of  import Carriage to  place of  destination Import  customs  clearance,   Imports  Taxes FCA Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer
    11. 11. Incoterm 2010 Export- Customs declaration Carriage to port of export Unloading of truck in port of export Loading charges in port of export Carriage (Sea Freight/Air Freight) to port of import Insurance Loading on truck in port of import Carriage to place of destination Import customs clearance, Imports taxes FAS Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer
    12. 12. Incoterm 2010 Export- Customs declaration Carriage to port of export Unloading of truck in port of export Loading charges in port of export Carriage (Sea Freight/Air Freight) to port of import Insurance Loading on truck in port of import Carriage to place of destination Import customs clearance, Imports Taxes FOB Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer
    13. 13. Incoter m 2010 Export- Customs declaration Carriage to port of export Unloading of truck in port of export Loading charges in port of export Carriage (Sea Freight/Air Freight) to port of import Insurance Loading on truck in port of import Carriage to place of destination Import customs clearance, Import Taxes CFR Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer
    14. 14. Incoterm 2010 Export- Customs declaration Carriage to port of export Unloading of truck in port of export Loading charges in port of export Carriage (Sea Freight/Air Freight) to port of import Insurance Loading on truck in port of import Carriage to place of destination Import customs clearance, Import Taxes CIF Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer
    15. 15. Incoter m 2010 Export- Customs declaration Carriage to port of export Unloading of truck in port of export Loading charges in port of export Carriage (Sea Freight/Air Freight) to port of import Insurance Loading on truck in port of import Carriage to place of destination Import customs clearance, Import Taxes CPT Seller Seller Seller Seller Seller Buyer Seller Buyer Buyer
    16. 16. Incoterm 2010 Export- Customs declaration Carriage to port of export Unloading of truck in port of export Loading charges in port of export Carriage (Sea Freight/Air Freight) to port of import Insurance Loading on truck in port of import Carriage to place of destination Import customs clearance, Import Taxes CIP Seller Seller Seller Seller Seller Seller Seller Buyer Buyer
    17. 17. Incoter m 2010 Export- Customs declaration Carriage to port of export Unloading of truck in port of export Loading charges in port of export Carriage (Sea Freight/Air Freight) to port of import Insurance Terminal Charges Carriage to place of destinatio n Import customs clearance, Import Taxes DAT Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer
    18. 18. Incoterm 2010 Export- Customs declaration Carriage to port of export Unloading of truck in port of export Loading charges in port of export Carriage (Sea Freight/Air Freight) to port of import Insurance Loading on truck in port of import Carriage to place of destination Import customs clearance, Import Taxes DAP Seller Seller Seller Seller Seller Seller Seller Seller Buyer
    19. 19. Incoterm 2010 Export- Customs declaration Carriage to port of export Unloading of truck in port of export Loading charges in port of export Carriage (Sea Freight/Air Freight) to port of import Insurance Loading on truck in port of import Carriage to place of destination Import customs clearance, Import Taxes DDP Seller Seller Seller Seller Seller Seller Seller Seller Seller

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