Incoterms are international commercial terms published by the International Chamber of Commerce that define the responsibilities of importers and exporters in international transactions. The current Incoterms 2000 have 13 terms that are divided into four groups based on when risk and responsibility transfer from seller to buyer. While Incoterms clarify risk transfer, they do not determine property rights, name carriers, or address contract breaches. Users must be aware that Incoterms only apply if incorporated into sales contracts and do not replace full contract terms.

1. IMPORT AND EXPORTIMPORT AND EXPORT
PROCIDUREPROCIDURE
 PROJECT ON : INCOTERMPROJECT ON : INCOTERM
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2. Incoterms 2000
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3. IncotermIncoterm
(International commercial term)(International commercial term)
INCOTERMS serve as a good guide in this regard
as they spell out the "critical point" which
determines the passing of risk (of loss or damage
to the goods) from the Seller to the Buyer.
Commercial Terms are a series of international
trade terms that are used are used worldwide to
divide he transaction costs and responsibilities
between the seller and the buyer and reflect state-
of-the-art transportation practices.
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4.  Published by the InternationalPublished by the International
Chamber of Commerce (ICC) withChamber of Commerce (ICC) with
its Head Quarters in Parisits Head Quarters in Paris
 the present INCOTERMS 2000 havethe present INCOTERMS 2000 have
13 terms13 terms
 1953,1967,1980,1990 and 2000 are1953,1967,1980,1990 and 2000 are
different type of Incotermdifferent type of Incoterm
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5. THEY ARE NOT PART OF THE CONTRACT FOR
CARRIAGE
THEY ARE NOT USED TO TRANSFER
PROPERTY RIGHTS OR TITLE
THEY ARE NOT USED TO NAME A CARRIER
THEY ARE NOT USED TO DETERMINE THE
THE EFFECT OF BREACH OF CONTRACT
CASES
WHAT INCOTERMS AREWHAT INCOTERMS ARE
NOTNOT
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6. Incoterm GroupsIncoterm Groups
 ““E” TERMS -E” TERMS - DEPARTUREDEPARTURE
 ““F” TERMS –F” TERMS – MAIN CARRIAGE UNPAIDMAIN CARRIAGE UNPAID
 ““C” TERMS –C” TERMS – MAIN CARRIAGE PAIDMAIN CARRIAGE PAID
 ““D” TERMS -D” TERMS - ARRIVALARRIVAL
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7. Incoterm descriptionIncoterm description
EXU, FCA, FAS, FOB, CFR,EXU, FCA, FAS, FOB, CFR,
CIE, DEQ, DDP, Etc…….CIE, DEQ, DDP, Etc…….
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8. Important points AboutImportant points About
INCOTERMINCOTERM
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9.  These deal with passing of RISK and not TITLE overThese deal with passing of RISK and not TITLE over
goods or similar issues.goods or similar issues.
 - These are not a substitute to a full Contract of Sale- These are not a substitute to a full Contract of Sale
 They do not have force of law unless the Contract ofThey do not have force of law unless the Contract of
Sale mentions INCOTERMS 2000. For example: FOBSale mentions INCOTERMS 2000. For example: FOB
(INCOTERM 2000)(INCOTERM 2000)
 - Except in the case of CIF and CIP, insurance is not- Except in the case of CIF and CIP, insurance is not
mandatory. For instance an FOB Seller should notmandatory. For instance an FOB Seller should not
take for granted that the Buyer has insurance for thetake for granted that the Buyer has insurance for the
overseas voyage.overseas voyage.
 - Unless otherwise mentioned in the credit, CIF or CIP- Unless otherwise mentioned in the credit, CIF or CIP
Seller is not under obligation to arrange an All RisksSeller is not under obligation to arrange an All Risks
insurance.insurance. www.StudsPlanet.comwww.StudsPlanet.com

10.  - With containerisation and use of RO vessels, the- With containerisation and use of RO vessels, the
traditional ships rail as a point of division of riskstraditional ships rail as a point of division of risks
and costs are no more relevant. Seller's andand costs are no more relevant. Seller's and
Buyers should be aware of the consequences ofBuyers should be aware of the consequences of
using a wrong term.using a wrong term.
 - Under CIF or CIP, the Seller is obliged to obtain- Under CIF or CIP, the Seller is obliged to obtain
insurance on port to port basis. If you want coverinsurance on port to port basis. If you want cover
extending period of insurance from port to the finalextending period of insurance from port to the final
warehouse inland, please request your Seller to dowarehouse inland, please request your Seller to do
this. Otherwise if a separate insurance is requiredthis. Otherwise if a separate insurance is required
from port of discharge to the final place (e.g.,from port of discharge to the final place (e.g.,
Mumbai Port to Thane, your local Insurer would beMumbai Port to Thane, your local Insurer would be
a bit concerned with concealed damage or lossa bit concerned with concealed damage or loss
during the ocean voyage which was not insuredduring the ocean voyage which was not insured
with them!with them!
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11. THANK YOUTHANK YOU
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