INCOTERMS are a set of three-letter standard trade terms used worldwide in international and domestic contracts for the sale of goods. Learn their definitions and how they are used. AFC International can help you import your goods bound for the U.S. quick and easy. Visit http://www.afcinternationalllc.com/ to get started.
Basic Shipping Documentation.
- An induction on the container transport, and its driving forces.
- Outlines of the parties and sectors who involve in the business.
- Outlines of the operation, and
- Introduction of the various key documents associated with each sector of the business, and their significance.
What documents are produced in facilitating the shipment cycle:
- Apart from the physical transportation of the goods from the buyer to the seller, there are various kinds of documents involved.
- This presentation aims at providing a basic knowledge on the key documents.
- For details on the documents, you may need to refer to the relevant text.
The Incoterms® rules are the world’s essential terms of trade for the sale of goods. Whether you are filing a purchase order, packaging and labelling a shipment for freight transport, or preparing a certificate of origin at a port, the Incoterms® rules are there to guide you. The Incoterms® rules provide specific guidance to individuals participating in the import and export of global trade on a daily basis.
The Incoterms rules explain a set of 11 of trade terms, reflecting business-to-business practice in contracts for the sale and purchase of goods.
An in-depth presentation about International Commercial Terms that helps you understand this trade standard with the aid of intuitive pictures, charts and graphical interpretations.
INCOTERMS are a set of three-letter standard trade terms used worldwide in international and domestic contracts for the sale of goods. Learn their definitions and how they are used. AFC International can help you import your goods bound for the U.S. quick and easy. Visit http://www.afcinternationalllc.com/ to get started.
Basic Shipping Documentation.
- An induction on the container transport, and its driving forces.
- Outlines of the parties and sectors who involve in the business.
- Outlines of the operation, and
- Introduction of the various key documents associated with each sector of the business, and their significance.
What documents are produced in facilitating the shipment cycle:
- Apart from the physical transportation of the goods from the buyer to the seller, there are various kinds of documents involved.
- This presentation aims at providing a basic knowledge on the key documents.
- For details on the documents, you may need to refer to the relevant text.
The Incoterms® rules are the world’s essential terms of trade for the sale of goods. Whether you are filing a purchase order, packaging and labelling a shipment for freight transport, or preparing a certificate of origin at a port, the Incoterms® rules are there to guide you. The Incoterms® rules provide specific guidance to individuals participating in the import and export of global trade on a daily basis.
The Incoterms rules explain a set of 11 of trade terms, reflecting business-to-business practice in contracts for the sale and purchase of goods.
An in-depth presentation about International Commercial Terms that helps you understand this trade standard with the aid of intuitive pictures, charts and graphical interpretations.
Have you ever wondered about the meaning of commodity trading terms, or Incoterms? FOB…DES…DDP. Say What?!?
Incoterms were established by the International Chamber of Commerce (ICC), a non-governmental organization, to standardize the interpretation of major trade terms.
Sales contracts using Incoterms define the obligations and risks of both the seller and the buyer. The obligations cover the period while the merchandise is in transit, whether by land, sea, air or a combination of modes.
INTERNATIONAL SHIPPING TERMS , INCOTERMSAman Dwivedi
INTERNATIONAL SHIPPING TERMS (INCOTERMS)
1. EXW – Ex Works (named place of delivery)
2. FCA – Free Carrier (named place of delivery)
3. CPT – Carriage Paid To (named place of destination)
4. CIP – Carriage and Insurance Paid to (named place of destination)
5. DAT – Delivered At Terminal (named terminal at port or place of destination)
6. DAP – Delivered At Place (named place of destination)
7. DDP – Delivered Duty Paid (named place of destination)
8. FAS – Free Alongside Ship (named port of shipment)
9. FOB – Free on Board (named port of shipment)
10. CFR – Cost and Freight (named port of destination)
11. CIF – Cost, Insurance & Freight (named port of destination)
Incoterms are widely used in international commerical transaction or procurement process and there used is encourged by trade councils and international lawers
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iIncoterms
1.
2. What is an Incoterm
The terms of shipment and delivery, as well as the transfer of risk, between the
buyer and seller.
Who Created
Incoterms were created by the International Chamber of Commerce (ICC) and
are a registered trademark of the ICC.
Incoterms are reviewed every 10 years to keep pace with the ever-changing
world of international trade.
The latest edition is the Incoterms 2010 which are effective January 1, 2011.
3. Changes
The number of categories reduced from four to two in new Incoterms – 2011
These two categories are :
Terms for any mode or modes of transport
Term for sea and inland waterway transport
previous 13 Incoterms reduced to 11
Reduced Incoterms are following
DAF
DES
DEQ
DDU
Introduced new Incoterms are :
DAT
DAP
4. Terms for any mode or modes of
transport
These Consists of following seven terms
CIP - CARRIAGE AND INSURANCE PAID TO
CPT - CARRIAGE PAID TO
DAT - DELIVERED AT TERMINAL
DAP - DELIVERED AT PLACE
DDP - DELIVERED DUTY PAID
FCA - FREE CARRIER
EXW - EX WORKS
All of these terms need to specify the port or destination
5. Term for sea and inland waterway
transport
These Consists of following Four terms
To the named
CFR - COST AND FREIGHT port of
CIF – COST, INSURANCE AND FREIGHT destination
FAS - FREE ALONGSIDE SHIP To the named
FOB - FREE ON BOARD port of
Shipment
6. CIP - CARRIAGE AND INSURANCE PAID TO
The Seller pays for moving the goods to destination. From the time the goods are
transferred to the first carrier, the Buyer bears the risks of loss or damage. The
Seller, however, purchases the cargo insurance.
CPT - CARRIAGE PAID TO
The Seller pays for moving the goods to destination. From the time the goods are
transferred to the first carrier, the Buyer bears the risks of loss or damage.
7. DAT - DELIVERED AT TERMINAL
The Seller delivers when the goods, once unloaded from the arriving means of
transport, are placed at the Buyer's disposal at a named terminal at the
named port or place of destination. "Terminal" includes any place, whether
covered or not, such as a quay, warehouse, container yard or road, rail or air
cargo terminal. The Seller bears all risks involved in bringing the goods to and
unloading them at the terminal at the named port or place of destination.
DAP - DELIVERED AT PLACE
The Seller delivers when the goods are placed at the Buyer's disposal on the
arriving means of transport ready for unloading at the names place of
destination. The Seller bears all risks involved in bringing the goods to the
named place.
DDP - DELIVERED DUTY PAID
The Seller delivers the goods -cleared for import - to the Buyer at destination.
The Seller bears all costs and risks of moving the goods to destination,
including the payment of Customs duties and taxes.
8. FCA - FREE CARRIER
The Seller delivers the goods, cleared for export, to the carrier selected by the
Buyer. The Seller loads the goods if the carrier pickup is at the Seller's premises.
From that point, the Buyer bears the costs and risks of moving the goods to
destination.
EXW - EX WORKS
The Seller's only responsibility is to make the goods available at the Seller's
premises. The Buyer bears full costs and risks of moving the goods from there to
destination.
9. CFR - COST AND FREIGHT
The Seller clears the goods for export and pays the costs of moving the goods to
destination. The Buyer bears all risks of loss or damage
CIF - COST INSURANCE AND FREIGHT
The Seller clears the goods for export and pays the costs of moving the goods to
the port of destination. The Buyer bears all risks of loss or damage. The Seller,
however, purchases the cargo insurance.
10. FAS - FREE ALONGSIDE SHIP
The Seller delivers the goods to the origin port. From that point, the Buyer bears
all costs and risks of loss or damage.
FOB - FREE ON BOARD
The Seller delivers the goods on board the ship and clears the goods for export.
From that point, the Buyer bears all costs and risks of loss or damage
11. Source :
InternationalChamber of Commerce (ICC) ,
http://www.iccwbo.org/incoterms/
http://en.wikipedia.org/wiki/Incoterms
http://www.export911.com/e911/export/comTerm.ht
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