#INCOTERM -2010# By SN Panigrahi
The Incoterm Rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) (@iccwbo) widely used in international commercial transactions. First published in 1936 by International Chamber of Commerce
International Chamber of Commerce (ICC)
Incoterms-What is it?, History,
Who publish them, Importance, Functions, Divisions, Rules, Buyers and Sellers Obligations in each incoterm.
Changes in Incoterms.
Incoterms 2020 changes the transfer of risk of goodsM S Siddiqui
Global traders have started negotiating the contract is based on Incoterm 2020 and particularly Carriage paid to (ICT). The international traders of Bangladesh should go through the details of privileges, liabilities and responsibilities before agreed to the ICT term for import and export.
#Changes in INCOTERMs ® 2020 : How to Use the Terms# By SN PanigrahiSN Panigrahi, PMP
#Changes in INCOTERMs ® 2020 : How to Use the Terms# By SN Panigrahi,
INCOTERMs ® - 2020,
History of INCOTERMs,
What Do INCOTERMs ® Do?,
International Sales Transactions,
What are the main changes in INCOTERMs ® 2020?,
INCOTERMS@ 2020 Rules Classification ,
What INCOTERMs ® - 2020 Do Not Define?,
How to use INCOTERMs ® - 2020,
Can I still use Incoterms® 2010 after January 1, 2020?
Incoterms are widely used in international commerical transaction or procurement process and there used is encourged by trade councils and international lawers
Incoterms-What is it?, History,
Who publish them, Importance, Functions, Divisions, Rules, Buyers and Sellers Obligations in each incoterm.
Changes in Incoterms.
Incoterms 2020 changes the transfer of risk of goodsM S Siddiqui
Global traders have started negotiating the contract is based on Incoterm 2020 and particularly Carriage paid to (ICT). The international traders of Bangladesh should go through the details of privileges, liabilities and responsibilities before agreed to the ICT term for import and export.
#Changes in INCOTERMs ® 2020 : How to Use the Terms# By SN PanigrahiSN Panigrahi, PMP
#Changes in INCOTERMs ® 2020 : How to Use the Terms# By SN Panigrahi,
INCOTERMs ® - 2020,
History of INCOTERMs,
What Do INCOTERMs ® Do?,
International Sales Transactions,
What are the main changes in INCOTERMs ® 2020?,
INCOTERMS@ 2020 Rules Classification ,
What INCOTERMs ® - 2020 Do Not Define?,
How to use INCOTERMs ® - 2020,
Can I still use Incoterms® 2010 after January 1, 2020?
Incoterms are widely used in international commerical transaction or procurement process and there used is encourged by trade councils and international lawers
#How to Draft International Sales Contracts# By SN PanigrahiSN Panigrahi, PMP
#How to Draft International Sales Contracts# By SN Panigrahi,
Essenpee Business Solutions,
International Sales Contract,
Essentials Elements of a Valid Contract,
Export Contract,
UNIDROIT Principles of International Commercial Contracts,
ITC MODEL CONTRACT FOR THE INTERNATIONAL COMMERCIAL SALE OF GOODS
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)
The supply chain through which goods are transported consists of multiple agents. These agents communicate with each other and exchange information and documentation to make the freight transport process possible.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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#How to Draft International Sales Contracts# By SN PanigrahiSN Panigrahi, PMP
#How to Draft International Sales Contracts# By SN Panigrahi,
Essenpee Business Solutions,
International Sales Contract,
Essentials Elements of a Valid Contract,
Export Contract,
UNIDROIT Principles of International Commercial Contracts,
ITC MODEL CONTRACT FOR THE INTERNATIONAL COMMERCIAL SALE OF GOODS
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)
The supply chain through which goods are transported consists of multiple agents. These agents communicate with each other and exchange information and documentation to make the freight transport process possible.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
Globalization has given impetus of international trade which is increasing by the day. International trade involves multiple agencies, transportation agents, carriers as well as Customs and Banks etc of the two countries involved in trade.
Export and Import transactions are essentially dependant upon documentation and information to flow across all related agencies smoothly.
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.
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.
Education is Fundamental to the Nation Building Process.
Right to Education is now a Fundamental Right of every child in India.
GST Law Recognizes this and provides Certain Exemption to Educational Institutions, providing Education
In this Presentation let's Discuss the Applicability of GST on Education Sector
Eliminating 8 Wastes For Improving Supplychain EfficacyMMR July 2022 SN Panigrahi, PMP
A supply chain is a Chain of Supplies -
is the network of all the individuals,
organizations, resources, activities and
technology involved in the creation and supply of a
product, from the delivery of source materials from
the Supplier to Manufacturer to Distributer to
Wholesaler to Retailer and Eventually Delivery to the
End User or Consumer. Lean is the concept of efficient
manufacturing/operations that grew out of
the Toyota Production System in the middle of the
20th century. Since then, “lean” which was started as
an important concept, in the world of manufacturing
first, has thrived in to other fields such as Supply Chain
Management (SCM). Lean management is an approach
to managing an organization that supports the concept
of continuous improvement, a long-term approach to
work that systematically seeks to achieve small,
incremental changes in the processes in order to
improve efficiency and quality by eliminating or
minimising the process waste and maximising the value
of the product or service to the customer.
In this article we shall discuss 8 types of wastes in the
entire value stream of supply chain and analyse Cause
- Effect & Solution for improving Supply Chain Efficacy.
SUPPLY CHAIN DISRUPTIONS & RESILIENCE - By SN PanigrahiSN Panigrahi, PMP
SUPPLY CHAIN DISRUPTIONS & RESILIENCE
Article Published in Materials Management Review of IIMM
SN Panigrahi
#IIMM,
#materialsmanagement,
#supplychainmanagement,
#supplychaindisruptions,
#supplychainresilience,
Challenges of Apparel Exports from India - Presentation @ Indian Institute...SN Panigrahi, PMP
I had an Opportunity to Provide Training to the Officials of Directorate of MSME, Govt. of West Bengal on "Training of Master Trainers for Export Consultancy in the Gems and Jewellery & Apparel Sector of West Bengal“
Through Indian Institute of Foreign Trade (IIFT), Kolkata on Hybrid Mode on 1st Dec'2021.
This is Part of West Bengal Government's Strategy to Promote Exports from the State. West Bengal Government Targeted to Double the Apparel Exports from the State in next 3-5 Years.
SN Panigrahi
What is Lean? Understanding Lean Principles by SN PanigrahiSN Panigrahi, PMP
What is Lean? Understanding Lean Principles by SN Panigrahi
Lean is a way of thinking about creating needed value with fewer resources and less waste. Lean is a practice consisting of continuous experimentation to achieve perfect value with zero waste.
RoDTEP Scheme - Manner to Issue & Utilization of Duty Credit for Goods Expor...SN Panigrahi, PMP
RoDTEP Scheme - Manner to Issue & Utilization of Duty Credit for Goods Exported - By SN Panigrahi
Remission of Duties or Taxes on Export Products (RoDTEP) was introduced for the Exporters to make Indian products cost-competitive and create a level playing field for them in the Global Market by Refund un-refunded Taxes or Duties / Levies, not Exempted or Rebated at Present by any other Mechanism.
Government Issued an Advisory on 1st Jan’2021, to implement the Scheme effective from 1st Jan’2021, and allowed the exporters to claim in the Shipping Bill, even though Rates were not announced. Subsequently the Rates range from 0.5% to 4.3% for various Sectors at 8 Digit Level as per Appendix – 4R of Hand Book of Procedures were announced by DGFT vide: Notification 19 / 2015-2020, dated 17th Aug’2021.
Now, CBIC announced the Manner of Issue Duty Credit for Goods Exported under the scheme vide Notification No: 76/2021-Customs (N.T.), 23rd September, 2021.
Enterprise Risk Assessment : A Pro-active Measure to Establish Strategic Prio...SN Panigrahi, PMP
Enterprise Risk Assessment : A Pro-active Measure to Establish Strategic Priorities & To Tackle Key Business Risks- By SN Panigrahi
Enterprise Risk Assessment Tool is used by organizations to Manage Risks Pro-actively and Seize Opportunities related to the achievement of their Objectives. Risk Assessment outcomes help Organizations to Establish Strategic Priorities and Activities to Tackle Key Risks. Increasing Awareness and Imbibing Risk Culture with Involvement of Top Management & Cross Functional Teams shall enhance the Organizations ability to Understand, Identify, and Develop Action Plans in Advance to Pro-Actively Manage Risks.
Hybrid Project Life Cycle - By SN Panigrahi,
Understanding Project Phase & Project Life Cycle,
Types of Project Life Cycle,
Predictive Life Cycle,
Iterative Life Cycle,
Incremental Life Cycle,
Adaptive Life Cycle,
Agile Life Cycle,
Hybrid Life Cycle,
Characteristics of Hybrid Life Cycles,
1.Agile Development Followed by a Predictive Model,
2. Combined Agile and Predictive Approaches,
3. Predominantly Predictive Approach with Some Agile Components,
4. Largely Agile Approach with a Predictive Component,
#HybridLifeCycle,
#PredictiveLifeCycle,
#AgileLifeCycle
#pmpexam,
#pmpcertification,
#pmptraining,
#pmpexamprep,
#pmpcertificationexam,
#pmp2021,
#pmpcommunity
#ProjectFundamentals
#SNPanigrahi,
#EssAnnPee Business Solutions
Choosing Right CHA & Freight Forwarders - By SN PanigrahiSN Panigrahi, PMP
Choosing Right CHA & Freight Forwarders - By SN Panigrahi,
Basic Understanding of Exports,
Incoterms – 2020 : Key Considerations to Avoid Risk,
Role of Logistic Intermediaries : CHAs / Forwarders /1PL, 2PL, 3PL, 4PL,
Selection of CHAs / Freight Forwarders / Shipping Lines,
#SN Panigrahi,
#EssAnnPee Business Solutions,
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
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2. 2
SN Panigrahi is a Versatile Practitioner, Strategist, Energetic Coach, Learning Enabler & Public Speaker.
He is an International-Corporate Trainer, Mentor & Author
He has diverse experience and expertise in Project Management, Contract
Management, Supply Chain Management, Procurement, Strategic
Sourcing, Global Sourcing, Logistics, Exports & Imports, Indirect Taxes –
GST etc.
He had done more than 150 Workshops on above
Published more than 500 Articles
He is an Engineer + MBA +PGD ISO 9000 / TQM with around 29 Yrs of
Experience
He is a certified PMP® from PMI (USA) and become PMI India
Champion
Also a Certified Lean Six Sigma Green Belt from Exemplar Global
Trained in COD for 31/2 Yrs. on Strategy & Leadership
GST Certified – MSME – Tech. Dev. Centre (Govt of India)
ZED Consultant – Certified by QCI – MSME (Govt of India)
Member Board of Studies, IIMM
Co-Chairman, Indirect Tax Committee, FTAPCCI
Empanelled Faculty in NI MSME
He has shared his domain expertise in various forums as a speaker & presented a number of papers in various national and
international public forums and received a number of awards for his writings and contribution to business thoughts.
SN Panigrahi
9652571117
snpanigrahi1963@gmail.com
Hyderabad
4. 4
The Incoterm Rules or International Commercial Terms are a series of pre-defined
commercial terms published by the International Chamber of Commerce
(ICC) (@iccwbo) widely used in international commercial transactions. First published in
1936 by International Chamber of Commerce
A series of three-letter trade terms related to common sales practices, the Incoterms
rules are intended primarily to clearly communicate the tasks, costs and risks associated
with the transportation and delivery of goods.
The Incoterms® 2010 rules* (International Commercial Terms) were developed by the
International Chamber of Commerce (ICC) as a uniform set of rules to clarify the costs,
risks and obligations of buyers and sellers in international commercial
transactions. Because they address issues relating to import and export, Incoterms® 2010
rules are most appropriate for use in international shipping.
The Incoterms® 2010 rules, the 7th revision are effective as of January 1, 2011.
5. 5
The terms are structured to increase incrementally the obligations (control, risk and cost) on one party
while decreasing the obligations of the other, depending on the specific term chosen.
Each term clarifies which party is responsible for:
Inland freight (transportation within the origination country)
Forwarder selection
Export clearance
Carrier selection and scheduling
International freight
Import clearance
Delivery occurs (and risk of loss transfers) at the point designated by the term selected.
Transfer of title is NOT covered by any of the Incoterms® 2010 rules and must be separately
specified by the parties.
Cont…
6. 6
3 Letter trade terms that relate to common sales practices:
STANDARDIZE
They provide uniform compliance of all parties, buyer and seller for all types of international and
domestic sales transactions
DEFINE RESPONSIBILITY
They determine what party is responsible for the goods and up to what point.
OUTLINE COSTS
To determine what fees and charges need to be included in the sales price in addition to the costs of
goods
REVEAL GAPS
What is not specified in the terms?
DETERMINE DELIVERY POINT & TRANSFER RISKS
Up to what point do you want your responsibility to end? What risks are involved in the delivery of
goods from the Seller to the Buyer
7. 7
3 Letter trade terms that relate to common sales practices:
How will the goods be shipped?
Who will pay the costs of the transportation and Insurance?
Have all the necessary costs been included in the final pricing?
What risks are involved with the terms that are being used?
What is the exact location point where risk transfers from seller to buyer?
It is not mandatory to use Incoterms in a sales contract.
Incoterms Define:
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.
8. 8
INCOTERMS - Apply to Contract of Sale. Not for Service Contracts
:Incoterms DO NOT define
Transfer of Ownership / Title of Goods Liability and Warranty
Terms of Payment Breach of Contract or Remedies
Credit Terms Court of Jurisdiction and Applicable Law
Date of Delivery Replacement Delivery
Financing Copyrights
Incoterms : Do not protect parties from their own risk of loss
Do not cover goods before or after delivery
Incoterms are Not
Contract of Carriage Contract of Insurance
Documents related to financing Even if those documents and the Incoterm Rule chosen
have some implications for one another
9. 9
Incoterms do NOT address transfer of legal title of the goods.
Rather, title passage is usually addressed in the sales/purchase contract or, if not, by default it is
addressed by sovereign (local) law.
FYI . . . in most transactions, passage of legal ownership from the seller to the buyer usually requires two
events:
Delivery + Payment = Title Transfer
Incoterms are not law and do NOT automatically apply to every sales transaction
of tangible goods.
The parties must specify that their transaction is subject to Incoterms® 2010.
By themselves, Incoterms do not determine revenue or expense recognition in
financial statements.
By themselves, Incoterms do not specify
• how goods are to be packed for shipment
or
• how the goods are to be loaded and stowed onto transport equipment (as in a container, on a truck, rail
car, aircraft, ocean vessel, etc.).
Incoterms are not Payment Terms (although payment timing is commonly tied to the event of delivery).
Payment Terms + Incoterms = Terms of Sale
10. 10
Terms covered by Incoterms
– Warehousing
– Packing and Loading
– Inland Freight
– Terminal Charges
– Freight Forwarder’s Fees
– Ocean/Air Freight
– Duty, Taxes, & Customs Clearance
– Delivery
– Security Clearances (new to 2010)
11. Following three terms have been replaced by one term DAP (Delivered at Place)
DAF (Delivered at Frontier) – Rarely used and limited to ground transport
DES (Delivered Ex-Ship) – Limited to water shipments only
DDU (Delivered Duty Unpaid) – Not appropriate for domestic shipments since
duty was implied
DAP can be used with any mode of transport – domestic or international
DEQ (Delivered Ex-Quay) replaced by DAT (Delivered at Terminal)
DEQ required the seller (shipper) to unload at the quay
DEQ was limited to water transport
DAT
Requires the seller to unload at the quay, terminal, or warehouse
Can be used with any mode of transport
The number of terms are reduced to 11 in INCOTERMS 2010 from 13in INCOTERMS 2000.
INCOTERMS 2010 also attempt to better take into account the roles cargo security and electronic data
interchange now play in international trade
12. 12
In the sales contract, buyers and sellers should refer to the appropriate version of the Incoterms
e.g. FOB Navasheva, India, Incoterms 2010.
It is possible to add clauses or change the wording of Incoterms.
Examples:
CFR Charleston port USA incl. THC, CUC, ISPS in Charleston
FCA Vienna Airport loaded on aircraft
DDP Hanoi Vietnam VAT unpaid
Bear in mind that a change in the transfer of costs can result in a changed transfer of
risks.
Terminal Handling Charges Now specifically allocated so that buyer is not
charged twice (seller and terminal)
How To Use Incoterm
13. 13
Incoterms® 2010
Multi-modal
(available for
multiple forms of
transport, including
land, rail, air and
waterway
transportation)
Seven Incoterms
EXW, FCA, CPT,
CIP, DAT, DAP,
DDP
Marine Only
Mode
(applicable only to
sea & inland
waterway
transportation)
Four Incoterms
FAS, FOB,CFR
& CIF
The 11 Incoterms® 2010 rules are presented in two distinct
classes:
Incoterms® 2010 rules formally recognizes that they are available for
application to both international and domestic sale contracts
15. 15
• The Seller’s only responsibility is to make the goods available at the Seller’s
premises. The Buyer bears full costs and risks of loading and moving the goods
from there to destination. Seller does not need to load the goods on any
collecting vehicle, nor does it need to clear the goods for export
EXW – EX WORKS
(… named place of
delivery)
• 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 on moving the goods to destination. Seller does
clear goods for export; import formalities are buyer’s responsibility.
Seller may contract for carriage at buyer’s expense and risk
FCA – FREE
CARRIER (… named
place of delivery)
• 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.
CPT – CARRIAGE
PAID TO (… named
place of destination)
Used for any Mode of Transport
16. 16
• 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.
CIP – CARRIAGE AND
INSURANCE PAID TO
(… named place of
destination)
• 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.
DAT – DELIVERED AT
TERMINAL (… named
terminal at port or place
of destination)
• The Seller delivers when the goods are placed at the
Buyer’s disposal on the arriving means of transport ready
for unloading at the named place of destination. The Seller
bears all risks involved in bringing the goods to the
named place.
DAP – DELIVERED AT
PLACE (… named place
of destination)
Used for any Mode of Transport
17. 17
• 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.
DDP –
DELIVERED
DUTY PAID
(… named place)
Used for any Mode of Transport
18. 18
• The Seller delivers the goods to the origin port. From that point, the
Buyer bears all costs and risks of loss or damage.
FAS – FREE
ALONGSIDE SHIP (…
named port of
shipment)
• 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.
FOB – FREE ON
BOARD (… named
port of shipment)
• 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.
CFR – COST AND
FREIGHT (… named
port of destination)
These terms do not apply to any other means of transport except Marine.
19. 19
• 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.
CIF – COST
INSURANCE
AND FREIGHT
(… named port
of destination)
These terms do not apply to any other means of transport except Marine.
20. 20
Be Specific:
If you use INCOTERMS in the Sales Contract or Purchase Order, you should identify the
appropriate INCOTERM Rule [e.g. FCA, CPT, etc.], state "INCOTERMS 2010" and specify
the place or port as precisely as possible.
Terminal : Terminal includes any place, whether covered or not. It can
be a quay, a warehouse, a container yard, a road, rail or air cargo terminal.
Electronic communication
Articles A1/B1 of the Incoterms® 2010 rules, now give electronic means of communication
the same effect as paper communication if agreed or common practice between the
contracting parties
Insurance Cover
The Incoterms® 2010 rules place information duties relating to insurance in articles A3/B3,
which deal with contracts of carriage and insurance
The seller is obliged to arrange transport insurance only under CIP and CIF terms.
But
This is necessary only for the part of transport, for which the seller carries the costs and
the buyer carries the risk.
The seller is obligated to arrange insurance with minimum cover only (Institute Cargo
Clause C).
Recommended
Insurance cover in accordance with Institute Cargo Clause A
21. 21
Institute cargo clauses are attached to a type of marine insurance that covers cargo in
transit. These clauses are to specify what items in the cargo are covered should there be
damage or loss to the shipment. Institute cargo clauses can cover everything from the
cargo itself to the container that holds it to the mode of transportation used to ship it.
There are three basic sets of institute cargo clauses; A, B, C. Just like you are able to
get insurance on smaller, domestic packages; bulk freight is insured too.
These clauses were developed by the International Chamber of Commerce as a means of
insurance for cargo while it is being shipped from the original location to its final
destination.
Just like auto insurance, the higher premium you pay the more coverage you get. The
three clauses are briefly described the same way:
– Institute Cargo Clause A is considered the widest insurance coverage and you should
expect to pay the highest premium because you are asking for total coverage.
– Institute Cargo Clause B is considered a more restrictive coverage and you should
expect to pay a moderate premium because perhaps you are only requesting the more
valuable items in your cargo to be covered or only partial cargo coverage.
– Institute Cargo Clause C is considered the most restrictive coverage and you will
probably pay the lowest premium but your cargo coverage will be much less.
22. 22
•Institute Cargo Clauses (C) covers very limited risks as a result it is called as
a minimum cover cargo insurance policy.
•Institute Cargo Clauses (A) covers wide range of risks as a result it is called
as a "All Risks" cargo insurance policy.
•Insurance premium, which should be paid to the insurance company in order
to get the insurance policy issued, would be substantially different between
these two policy types.
•Institute Cargo Clauses (C) is the cargo insurance policy type which is
requested by the Incoterms 2010 rules.
•Institute Cargo Clauses (A) is the cargo insurance policy type which is
requested by the issuing banks under letter of credit transactions.
23. 23
Institute Cargo Clauses (C):
Institute Cargo Clauses (C) covers very limited risks most of them which must be happen during the carriage in
forms of accidents. Below you can find the details of the risk coverage of this type of insurance policy.
Loss of or damage to the subject-matter insured reasonably attributable to
•fire or explosion
•vessel or craft being stranded, grounded, sunk or capsized
•overturning or derailment of land conveyance
•collision or contact of vessel craft or conveyance with any external object other
than water
•discharge of cargo at a port of distress
Loss of or damage to the subject-matter insured caused by
•general average sacrifice
•jettison
Definitions: General Average Sacrifice: There is a general average act when, and only when, any
extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety
for the purpose of preserving from peril the property involved in a common maritime adventure.
Jettison:The intentional throwing overboard of part of the cargo or some piece of the ship in order to save the
ship or its cargo.
24. 24
Institute Cargo Clauses (A) covers maximum risks as a result it is also known as All Risks cargo
insurance policy. Below you can find the details of the risk coverage of this type of insurance policy.
Insurance Cargo Clauses (A) covers all the risks of loss of or damage to the goods except
following conditions:
Risks that have been caused by following reasons will not be covered under Insurance Cargo
Clauses (A)
All Risks Cargo Insurance Policy
25. 25
All risks cargo insurance policy will not be covering loss or damages arising from the
following reasons:
•General Exclusion Clauses
•
Loss damage or expense attributable to wilful misconduct of the Assured
•Ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured
•Loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject matter insured to
withstand the ordinary incidents of the insured transit where such packing or preparation is carried out by the Assured or their
employees or prior to the attachment of this insurance (for the purpose of these Clauses "packing" shall be deemed to include
stowage in a container and "employees" shall not include independent contractors)
•Loss damage or expense caused by inherent vice or nature of the subject-matter insured
•Loss, damage or expense caused by delay, even though the delay be caused by a risk insured against
•Loss, damage or expense caused by insolvency or financial default of the owners, managers, charterers or operators of the
vessel where, at the time of loading of the subject-matter insured on board the vessel, the Assured are aware, or in the ordinary
course of business should be aware, that such insolvency or financial default could prevent the normal prosecution of the voyage.
This exclusion shall not apply where the contract of insurance has been assigned to the party claiming hereunder who has bought or
agreed to buy the subject-matter insured in good faith under a binding contract
•Loss, damage or expense directly or indirectly caused by or arising from the use of any weapon or device employing atomic
or nuclear fission and/or fusion or other like reaction or radioactive force or matter.
26. 26
•Exclusion Clauses Covering Insufficiency of the Vessel or Containers etc.
•Loss damage or expense arising from unseaworthiness of vessel or craft or unfitness of vessel or craft for the
safe carriage of the subject-matter insured, where the Assured are privy to such unseaworthiness or unfitness, at
the time the subject-matter insured is loaded therein
•Loss damage or expense arising from unfitness of container or conveyance for the safe carriage of the subject-
matter insured, where loading therein or thereon is carried out prior to attachment of this insurance or by the
Assured or their employees and they are privy to such unfitness at the time of loading.
•Exclusion Clauses Covering War related Risks
•Loss damage or expense caused by war civil war revolution rebellion insurrection, or civil strife arising
therefrom, or any hostile act by or against a belligerent power.
•Loss damage or expense caused by capture seizure arrest restraint or detainment (piracy excepted), and the
consequences thereof or any attempt thereat.
•Loss damage or expense caused by derelict mines, torpedoes, bombs or other derelict weapons of war.
•Exclusion Clauses Covering Strikes, Riots and Civil Commotions Risks
•Loss damage or expense caused by strikers, locked-out workmen, or persons taking part in labour disturbances,
riots or civil commotions.
•Loss damage or expense resulting from strikes, lock-outs, labour disturbances, riots or civil commotions.
27. 27
Recognize Where The Risk Of Loss Transfers:
A common misconception when the Seller pays the freight is that the Seller has the risk of loss until the goods
are delivered to the place or port specified on the bill of lading or airway bill.
Actually, when using INCOTERMS CPT, CIP, CFR or CIF, Seller fulfills its obligation to deliver when it
hands the goods over to the carrier at origin, and risk transfers to the Buyer at that point and not when
the goods reach the place of destination
Understand that under CIP and CIF, the Seller is only obliged to obtain Insurance
Understand Who Has Responsibility For Loading And Unloading Charges. For Example:
DAT obliges the Seller to place the goods at the Buyer's disposal after unloading at the named terminal at port
or place of destination.
DAP obliges the Seller to place the goods at the Buyer's disposal on the delivering carrier ready for unloading
at the named place of destination.
CPT, CIP, CFR or CIF on the other hand, require the parties to identify as precisely as possible the point at the
agreed port of destination because the costs up to that point are for the account of the seller
28. Understand Who Has Responsibility For Customs Entry Declarations & Import Clearance :
DDP is the only INCOTERM where the Seller has responsibility for Customs Entry Declaration & Import Clearance
Security-related clearances and information required for such clearances
There is heightened concern nowadays about security in the movement of goods, requiring verification that the
goods do not pose a threat to life or property for reasons other than their inherent nature. Therefore, the Incoterms®
2010 rules have allocated obligations between the buyer and seller to obtain or to render assistance in obtaining
security-related clearances, such as chain-of-custody information, in articles A2/B2 and A10/B10 of various
Incoterms® rules.
Terminal handling charges
Under Incoterms® rules CPT, CIP, CFR, CIF, DAT, DAP, and DDP, the seller must make arrangements for the
carriage of the goods to the agreed destination. While the freight is paid by the seller, it is actually paid for by the
buyer as freight costs are normally included by the seller in the total selling price. The carriage costs will sometimes
include the costs of handling and moving the goods within port or container terminal facilities and the carrier or
terminal operator may well charge these costs to the buyer who receives the goods. In these circumstances, the
buyer will want to avoid paying for the same service twice: once to the seller as part of the total selling price and
once independently to the carrier or the terminal operator. The Incoterms® 2010 rules seek to avoid this happening
by clearly allocating such costs in articles A6/B6 of the relevant Incoterms rules.
29. 29
String sales :
In the sale of commodities, as opposed to the sale of manufactured goods, cargo
is frequently sold several times during transit “down a string”. When this
happens, a seller in the middle of the string does not “ship” the goods because
these have already been shipped by the first seller in the string.
The seller in the middle of the string therefore performs its obligations towards
its buyer not by shipping the goods, but by “procuring” goods that have been
shipped. For clarification purposes, Incoterms® 2010 rules include the
obligation to “procure goods shipped” as an alternative to the obligation to ship
goods in the relevant Incoterms rules.