The document provides an overview of INCOTERMS®2010 rules for international trade. It explains that INCOTERMS define responsibilities for costs and risks in delivery of goods between buyers and sellers. The rules describe 11 terms that specify responsibilities at different points in the delivery process, such as EXW (seller's premises), FCA (named place), DAT (delivered at terminal), and DDP (delivered duty paid to final destination). The document also provides detailed explanations of each INCOTERMS rule and how to properly incorporate the rules into sales contracts.
The document defines Incoterms, which are standard trade definitions used in international sales contracts. It was first published by the International Chamber of Commerce in 1936 and the latest version is Incoterms 2000. The document then explains various Incoterms rules that define responsibilities of buyers and sellers for delivery, costs, and risks involved in international trade transactions.
INCOTERMS are standard international trade definitions published by the International Chamber of Commerce for common terms used in international commercial transactions. The document outlines the history and revisions of INCOTERMS, including the introduction of the first version in 1936 and subsequent updates in 2000 and 2010. It also summarizes key aspects of INCOTERMS, such as the classifications of different trade terms, responsibilities of buyers and sellers, and important considerations for correctly using INCOTERMS in international sales contracts.
The document discusses INCOTERMs, which are a series of terms used in international trade to clearly define the obligations of buyers and sellers. Some key points:
- INCOTERMs were first published in 1936 and updated in 2010 to standardize international commercial terms. There are 11 terms covering transport, costs, insurance, and import/export responsibilities.
- Common terms include EXW (seller's warehouse), FCA (named place), CPT, CIP, DAT, DAP, and DDP (delivered to final destination with all costs paid).
- The terms specify whether the buyer or seller is responsible for arranging and paying for carriage, procuring insurance, clearing goods for export and import,
The document provides an overview of Incoterms, the international commercial terms used in contracts for the sale of goods. It defines 11 Incoterms and explains the obligations and risks transferred between buyer and seller under each term. The terms are grouped into four categories based on how far the seller's responsibility reaches: EXW - FCA terms cover delivery at the seller's premises or point of loading; FAS - FOB terms cover delivery on board a vessel; CFR - CIF terms cover delivery to a destination port; and CPT - DDP terms cover delivery to a destination point.
The document discusses export documentation and shipping terms (Incoterms). It defines key export documents like bills of lading, certificates of origin, and commercial invoices. It explains common shipping terms (Incoterms) such as EXW, FCA, FOB, CIF, and how they determine responsibilities of buyers and sellers. The document recommends working with a freight forwarder for accurate document preparation and understanding transportation costs and requirements.
These are internationally accepted commercial terms defining the respective roles and responsibilities of buyers and sellers in international trade. Published by the International Chamber of Commerce, Incoterms specify who is responsible for costs such as transportation, insurance, and customs clearance under different trade terms like EXW, FOB, CIF, and DDP. The terms were updated in 2010 to clarify responsibilities and reduce uncertainty in global commerce.
There are four main groups of INCO terms that determine responsibilities for transportation and delivery: E terms have minimum seller responsibility, F terms require the buyer to arrange carriage, C terms require the seller to arrange carriage, and D terms have maximum seller responsibility. Specific terms further define responsibilities for activities like loading, transport, insurance, and import/export clearance between buyers and sellers. Terms like FOB, FCA, CPT, CIF, CIP, DAT, DAP, and DDP allocate costs and define the point at which risks transfer between the parties for international trade.
INCOTERMS 2000 provides international rules for interpreting common commercial terms related to the transportation of goods. It was created by the International Chamber of Commerce and most recently revised in 2000. The terms are divided into four groups based on responsibilities for delivery and costs: terms of departure, main carriage unpaid, main carriage paid, and arrival. Some key terms include EXW (ex works), FCA (free carrier), FOB (free on board), CFR (cost and freight), CIF (cost, insurance, freight), and DDP (delivered duty paid).
The document defines Incoterms, which are standard trade definitions used in international sales contracts. It was first published by the International Chamber of Commerce in 1936 and the latest version is Incoterms 2000. The document then explains various Incoterms rules that define responsibilities of buyers and sellers for delivery, costs, and risks involved in international trade transactions.
INCOTERMS are standard international trade definitions published by the International Chamber of Commerce for common terms used in international commercial transactions. The document outlines the history and revisions of INCOTERMS, including the introduction of the first version in 1936 and subsequent updates in 2000 and 2010. It also summarizes key aspects of INCOTERMS, such as the classifications of different trade terms, responsibilities of buyers and sellers, and important considerations for correctly using INCOTERMS in international sales contracts.
The document discusses INCOTERMs, which are a series of terms used in international trade to clearly define the obligations of buyers and sellers. Some key points:
- INCOTERMs were first published in 1936 and updated in 2010 to standardize international commercial terms. There are 11 terms covering transport, costs, insurance, and import/export responsibilities.
- Common terms include EXW (seller's warehouse), FCA (named place), CPT, CIP, DAT, DAP, and DDP (delivered to final destination with all costs paid).
- The terms specify whether the buyer or seller is responsible for arranging and paying for carriage, procuring insurance, clearing goods for export and import,
The document provides an overview of Incoterms, the international commercial terms used in contracts for the sale of goods. It defines 11 Incoterms and explains the obligations and risks transferred between buyer and seller under each term. The terms are grouped into four categories based on how far the seller's responsibility reaches: EXW - FCA terms cover delivery at the seller's premises or point of loading; FAS - FOB terms cover delivery on board a vessel; CFR - CIF terms cover delivery to a destination port; and CPT - DDP terms cover delivery to a destination point.
The document discusses export documentation and shipping terms (Incoterms). It defines key export documents like bills of lading, certificates of origin, and commercial invoices. It explains common shipping terms (Incoterms) such as EXW, FCA, FOB, CIF, and how they determine responsibilities of buyers and sellers. The document recommends working with a freight forwarder for accurate document preparation and understanding transportation costs and requirements.
These are internationally accepted commercial terms defining the respective roles and responsibilities of buyers and sellers in international trade. Published by the International Chamber of Commerce, Incoterms specify who is responsible for costs such as transportation, insurance, and customs clearance under different trade terms like EXW, FOB, CIF, and DDP. The terms were updated in 2010 to clarify responsibilities and reduce uncertainty in global commerce.
There are four main groups of INCO terms that determine responsibilities for transportation and delivery: E terms have minimum seller responsibility, F terms require the buyer to arrange carriage, C terms require the seller to arrange carriage, and D terms have maximum seller responsibility. Specific terms further define responsibilities for activities like loading, transport, insurance, and import/export clearance between buyers and sellers. Terms like FOB, FCA, CPT, CIF, CIP, DAT, DAP, and DDP allocate costs and define the point at which risks transfer between the parties for international trade.
INCOTERMS 2000 provides international rules for interpreting common commercial terms related to the transportation of goods. It was created by the International Chamber of Commerce and most recently revised in 2000. The terms are divided into four groups based on responsibilities for delivery and costs: terms of departure, main carriage unpaid, main carriage paid, and arrival. Some key terms include EXW (ex works), FCA (free carrier), FOB (free on board), CFR (cost and freight), CIF (cost, insurance, freight), and DDP (delivered duty paid).
Incoterms are international commercial terms published by the International Chamber of Commerce that define the responsibilities of importers and exporters for delivery, costs, and risk. The terms are divided into four categories - EXW, FCA, CPT, and DDP - with different responsibilities assigned based on the term used. EXW means the exporter's minimum obligation is to make goods available at their premises, while DDP means the exporter is responsible for delivering goods and paying duties and taxes. Incoterms ensure global consistency and understanding in international trade contracts.
International Commercial Terms (Incoterms) were created in 1936 by the International Chamber of Commerce to standardize international commercial contract interpretations. The latest revision, Incoterms 2010, provides rules for 11 terms (down from 13 in 2000) that clarify obligations, risks, and costs in delivery of goods from seller to buyer. The terms are divided into two groups based on mode of transport, and four groups based on allocation of risks and costs. Incoterms aim to reduce uncertainties in international trade by achieving uniformity in contract interpretations.
This document provides definitions and explanations of common international commercial terms (EXW, FCA, CTP, CIP, DPU, DAP, DDP) that specify the responsibilities of buyers and sellers for the costs and risks associated with transporting goods. For each term, it specifies whether the seller or buyer is responsible for arranging and paying for carriage of goods, and when the risks and costs transfer from the seller to the buyer during the transportation process. The terms can be used for goods transported by any mode of transportation.
The document discusses Incoterms, which are international commercial terms used in sales contracts. It provides an overview of key Incoterms and their meanings. Specifically, it discusses the 11 main Incoterms divided into categories - EXW, FCA, FAS, FOB for Carriage terms, then CFR, CIF, CPT, CIP for Carriage and Insurance terms, followed by DAF, DES, DEQ, DDU, DDP for Delivery terms. Each Incoterm is defined in one or two sentences to clarify responsibilities for costs and risks between the buyer and seller.
The document outlines key terms used in international trade (Incoterms) and summarizes their meanings:
- "E" terms represent minimum seller obligations, requiring delivery at the seller's premises. "F" terms require delivery to the carrier, "C" terms require the seller to arrange carriage, and "D" terms signify arrival terms.
- Terms like EXW, FCA, and FAS put delivery and costs obligations on the seller up until goods are delivered to the carrier. CFR, CIF, CPT, and CIP terms require the seller to arrange and pay for carriage.
- DAF, DDU, DDP, and DEQ terms signify arrival terms, with the seller
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 standardized trade terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers for the delivery of goods, specifically who pays for what costs and assumes risks for delivering the goods from sellers' place of business to buyers' requested destination. The latest version, Incoterms 2010, reduced the number of categories from four to two and terms from 13 to 11 for improved clarity. It also introduced new terms DAT and DAP and removed DAF, DES, DEQ, and DDU.
Incoterms are standardized trade terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers for the delivery of goods under sales contracts. The latest version, Incoterms 2010, reduced the number of categories from four to two and terms from 13 to 11 for improved clarity. It also introduced new terms DAT and DAP and specifies that all terms require designation of a port or destination.
The International Chamber of Commerce published revisions to the International Commercial Terms (INCOTERMS) that take effect on January 1, 2011. The revisions include reducing the number of terms from 13 to 11, eliminating some terms and adding two new terms. INCOTERMS define obligations and risks involved in delivering goods internationally. They do not constitute a contract or define title transfer or payment terms - those are defined in the sales contract. The revised INCOTERMS 2010 are grouped into terms for any transport mode and maritime-only terms.
This document provides an overview of Incoterms, which are a set of international commercial terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers for the delivery of goods sold under contracts for international trade. It discusses that Incoterms were introduced in 1936 and most recently updated in 2012. It then briefly defines 11 common Incoterms (Ex Works, Free Carrier, Free Alongside Ship, Free on Board, Cost and Freight, Cost Insurance and Freight, Carriage Paid To, Carriage and Insurance Paid To, Delivered Duty Paid, and Delivery at Place) and notes their purpose is to reduce uncertainties and avoid additional costs in international trade contracts by clarifying delivery obligations.
This document provides an introduction to INCOTERMS and letters of credit. It discusses 9 key INCOTERMS (international commercial terms) that define responsibilities of buyers and sellers in international trade such as EXW, FCA, FOB, CIF, DDP. It then summarizes the basic process and parties involved in a letter of credit transaction where a bank guarantees payment to the seller when goods are shipped.
The document discusses Incoterms, which are international commercial terms used in contracts for the sale of goods. It provides definitions for 13 Incoterms, describing the obligations of buyers and sellers and key points related to costs, risks, and insurance. Specifically, it outlines the critical points where responsibilities are transferred from seller to buyer for each Incoterm in terms of costs, risks, and documents.
The document summarizes the INCOTERMS 2020 rules for international commercial terms. It explains that there are 11 INCOTERMS rules divided into two classes: rules for any mode of transport and rules for sea and inland waterway transport. It provides diagrams and descriptions for each rule (EXW, FCA, CPT, CIP, DPU, DAP, DDP, FAS, FOB, CFR, CIF) detailing the obligations of buyers and sellers in terms of costs, risks, and delivery responsibilities under each rule.
The document discusses INCO Terms 2010, which are a set of international commercial terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers for the delivery of goods. It outlines the main INCO terms groups and some key individual terms like EXW, FCA, CPT, CIP, DAT, DAP, and DDP, explaining the obligations and risks assigned to buyers and sellers under each term.
The Incoterms rules are a series of commercial terms published by the International Chamber of Commerce that are widely used in international trade to clearly define responsibilities for transportation and delivery costs. The first version was published in 1936 and has since been updated multiple times, with the current version being Incoterms 2010. The rules divide terms into four main groups based on responsibilities for transportation and insurance: E-terms define minimum seller obligations, F-terms specify additional obligations, C-terms require the seller to arrange carriage, and D-terms require the seller to deliver goods to the buyer.
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 document provides an overview of Incoterms® 2010, which are trade terms published by the International Chamber of Commerce that define responsibilities of buyers and sellers for the delivery of goods. It discusses the history and purpose of Incoterms®, the 11 current rules, key responsibilities under each rule, and other aspects of applying the Incoterms® such as naming a place in the supply chain. The presentation aims to help attendees understand how Incoterms® clarify responsibilities and risks between international trading partners.
This document provides an overview of Incoterms 2010 and the key responsibilities of buyers and sellers under different Incoterms. It discusses the 11 Incoterms divided into four groups - E, F, C, and D - based on the obligations of the exporter and importer. Group E terms require delivery at the exporter's premises, Group F requires delivery at the carrier, Group C requires delivery at a port, and Group D requires delivery at the destination. Charts are provided showing risk distribution between buyers and sellers and which Incoterms can be used for different modes of transport like air, road, rail, and sea freight. The document also outlines the responsibilities of exporters and importers for various costs and charges under each Inc
The document provides information about Incoterms 2010 rules. It begins by defining Incoterms and their purpose in international trade. It then outlines 11 specific Incoterms rules, including CFR, CIF, CPT, CIP, DAT, DAP, DDP, EXW, FCA, FAS, and FOB. For each rule, it summarizes the key obligations of the seller and buyer, such as who is responsible for costs of transportation and insurance. The document aims to enhance understanding of how Incoterms allocate responsibilities and manage risks between international trade parties.
This document provides information about Incoterms and their definitions. It begins with background on the origins and history of Incoterms. It then defines common Incoterms, including EXW, FCA, CPT, CIP, DAT, DAP, DDP, CFR, and CIF. For each Incoterm, it summarizes the key obligations of the seller and buyer, such as who is responsible for costs of transportation and insurance. The document aims to enhance understanding of how Incoterms allocate responsibilities and manage risks in international trade transactions.
The document discusses Incoterms 2020 rules, which are a series of international commercial terms published by the ICC relating to international commercial law. The Incoterms rules define key aspects of international sales contracts such as obligations, risks, and costs for the seller and buyer. There are 11 Incoterms rules divided into groups based on who pays costs and at what point risks transfer. The document explains several individual rules like EXW, FCA, CPT, CIP, DAP, DPU, and DDP, noting their definitions regarding delivery, costs, and risk transfer. It also outlines some differences between Incoterms 2010 and 2020, such as changes to insurance coverage and new explanatory notes.
The document summarizes Incoterms 2010, the international commercial terms published by the International Chamber of Commerce (ICC) that define responsibilities of buyers and sellers in international trade. It provides definitions of 11 Incoterms in order of increasing liability to the exporter, including changes from the previous version. Key changes include removing "ship's rail" references, clarifying delivery means "on board", addressing insurance, documentation and supply chain security. The document also notes what Incoterms do not cover, such as ownership or payment terms. It provides the definition of CFR (Cost and Freight) as an example.
Incoterms are international commercial terms published by the International Chamber of Commerce that define the responsibilities of importers and exporters for delivery, costs, and risk. The terms are divided into four categories - EXW, FCA, CPT, and DDP - with different responsibilities assigned based on the term used. EXW means the exporter's minimum obligation is to make goods available at their premises, while DDP means the exporter is responsible for delivering goods and paying duties and taxes. Incoterms ensure global consistency and understanding in international trade contracts.
International Commercial Terms (Incoterms) were created in 1936 by the International Chamber of Commerce to standardize international commercial contract interpretations. The latest revision, Incoterms 2010, provides rules for 11 terms (down from 13 in 2000) that clarify obligations, risks, and costs in delivery of goods from seller to buyer. The terms are divided into two groups based on mode of transport, and four groups based on allocation of risks and costs. Incoterms aim to reduce uncertainties in international trade by achieving uniformity in contract interpretations.
This document provides definitions and explanations of common international commercial terms (EXW, FCA, CTP, CIP, DPU, DAP, DDP) that specify the responsibilities of buyers and sellers for the costs and risks associated with transporting goods. For each term, it specifies whether the seller or buyer is responsible for arranging and paying for carriage of goods, and when the risks and costs transfer from the seller to the buyer during the transportation process. The terms can be used for goods transported by any mode of transportation.
The document discusses Incoterms, which are international commercial terms used in sales contracts. It provides an overview of key Incoterms and their meanings. Specifically, it discusses the 11 main Incoterms divided into categories - EXW, FCA, FAS, FOB for Carriage terms, then CFR, CIF, CPT, CIP for Carriage and Insurance terms, followed by DAF, DES, DEQ, DDU, DDP for Delivery terms. Each Incoterm is defined in one or two sentences to clarify responsibilities for costs and risks between the buyer and seller.
The document outlines key terms used in international trade (Incoterms) and summarizes their meanings:
- "E" terms represent minimum seller obligations, requiring delivery at the seller's premises. "F" terms require delivery to the carrier, "C" terms require the seller to arrange carriage, and "D" terms signify arrival terms.
- Terms like EXW, FCA, and FAS put delivery and costs obligations on the seller up until goods are delivered to the carrier. CFR, CIF, CPT, and CIP terms require the seller to arrange and pay for carriage.
- DAF, DDU, DDP, and DEQ terms signify arrival terms, with the seller
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 standardized trade terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers for the delivery of goods, specifically who pays for what costs and assumes risks for delivering the goods from sellers' place of business to buyers' requested destination. The latest version, Incoterms 2010, reduced the number of categories from four to two and terms from 13 to 11 for improved clarity. It also introduced new terms DAT and DAP and removed DAF, DES, DEQ, and DDU.
Incoterms are standardized trade terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers for the delivery of goods under sales contracts. The latest version, Incoterms 2010, reduced the number of categories from four to two and terms from 13 to 11 for improved clarity. It also introduced new terms DAT and DAP and specifies that all terms require designation of a port or destination.
The International Chamber of Commerce published revisions to the International Commercial Terms (INCOTERMS) that take effect on January 1, 2011. The revisions include reducing the number of terms from 13 to 11, eliminating some terms and adding two new terms. INCOTERMS define obligations and risks involved in delivering goods internationally. They do not constitute a contract or define title transfer or payment terms - those are defined in the sales contract. The revised INCOTERMS 2010 are grouped into terms for any transport mode and maritime-only terms.
This document provides an overview of Incoterms, which are a set of international commercial terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers for the delivery of goods sold under contracts for international trade. It discusses that Incoterms were introduced in 1936 and most recently updated in 2012. It then briefly defines 11 common Incoterms (Ex Works, Free Carrier, Free Alongside Ship, Free on Board, Cost and Freight, Cost Insurance and Freight, Carriage Paid To, Carriage and Insurance Paid To, Delivered Duty Paid, and Delivery at Place) and notes their purpose is to reduce uncertainties and avoid additional costs in international trade contracts by clarifying delivery obligations.
This document provides an introduction to INCOTERMS and letters of credit. It discusses 9 key INCOTERMS (international commercial terms) that define responsibilities of buyers and sellers in international trade such as EXW, FCA, FOB, CIF, DDP. It then summarizes the basic process and parties involved in a letter of credit transaction where a bank guarantees payment to the seller when goods are shipped.
The document discusses Incoterms, which are international commercial terms used in contracts for the sale of goods. It provides definitions for 13 Incoterms, describing the obligations of buyers and sellers and key points related to costs, risks, and insurance. Specifically, it outlines the critical points where responsibilities are transferred from seller to buyer for each Incoterm in terms of costs, risks, and documents.
The document summarizes the INCOTERMS 2020 rules for international commercial terms. It explains that there are 11 INCOTERMS rules divided into two classes: rules for any mode of transport and rules for sea and inland waterway transport. It provides diagrams and descriptions for each rule (EXW, FCA, CPT, CIP, DPU, DAP, DDP, FAS, FOB, CFR, CIF) detailing the obligations of buyers and sellers in terms of costs, risks, and delivery responsibilities under each rule.
The document discusses INCO Terms 2010, which are a set of international commercial terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers for the delivery of goods. It outlines the main INCO terms groups and some key individual terms like EXW, FCA, CPT, CIP, DAT, DAP, and DDP, explaining the obligations and risks assigned to buyers and sellers under each term.
The Incoterms rules are a series of commercial terms published by the International Chamber of Commerce that are widely used in international trade to clearly define responsibilities for transportation and delivery costs. The first version was published in 1936 and has since been updated multiple times, with the current version being Incoterms 2010. The rules divide terms into four main groups based on responsibilities for transportation and insurance: E-terms define minimum seller obligations, F-terms specify additional obligations, C-terms require the seller to arrange carriage, and D-terms require the seller to deliver goods to the buyer.
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 document provides an overview of Incoterms® 2010, which are trade terms published by the International Chamber of Commerce that define responsibilities of buyers and sellers for the delivery of goods. It discusses the history and purpose of Incoterms®, the 11 current rules, key responsibilities under each rule, and other aspects of applying the Incoterms® such as naming a place in the supply chain. The presentation aims to help attendees understand how Incoterms® clarify responsibilities and risks between international trading partners.
This document provides an overview of Incoterms 2010 and the key responsibilities of buyers and sellers under different Incoterms. It discusses the 11 Incoterms divided into four groups - E, F, C, and D - based on the obligations of the exporter and importer. Group E terms require delivery at the exporter's premises, Group F requires delivery at the carrier, Group C requires delivery at a port, and Group D requires delivery at the destination. Charts are provided showing risk distribution between buyers and sellers and which Incoterms can be used for different modes of transport like air, road, rail, and sea freight. The document also outlines the responsibilities of exporters and importers for various costs and charges under each Inc
The document provides information about Incoterms 2010 rules. It begins by defining Incoterms and their purpose in international trade. It then outlines 11 specific Incoterms rules, including CFR, CIF, CPT, CIP, DAT, DAP, DDP, EXW, FCA, FAS, and FOB. For each rule, it summarizes the key obligations of the seller and buyer, such as who is responsible for costs of transportation and insurance. The document aims to enhance understanding of how Incoterms allocate responsibilities and manage risks between international trade parties.
This document provides information about Incoterms and their definitions. It begins with background on the origins and history of Incoterms. It then defines common Incoterms, including EXW, FCA, CPT, CIP, DAT, DAP, DDP, CFR, and CIF. For each Incoterm, it summarizes the key obligations of the seller and buyer, such as who is responsible for costs of transportation and insurance. The document aims to enhance understanding of how Incoterms allocate responsibilities and manage risks in international trade transactions.
The document discusses Incoterms 2020 rules, which are a series of international commercial terms published by the ICC relating to international commercial law. The Incoterms rules define key aspects of international sales contracts such as obligations, risks, and costs for the seller and buyer. There are 11 Incoterms rules divided into groups based on who pays costs and at what point risks transfer. The document explains several individual rules like EXW, FCA, CPT, CIP, DAP, DPU, and DDP, noting their definitions regarding delivery, costs, and risk transfer. It also outlines some differences between Incoterms 2010 and 2020, such as changes to insurance coverage and new explanatory notes.
The document summarizes Incoterms 2010, the international commercial terms published by the International Chamber of Commerce (ICC) that define responsibilities of buyers and sellers in international trade. It provides definitions of 11 Incoterms in order of increasing liability to the exporter, including changes from the previous version. Key changes include removing "ship's rail" references, clarifying delivery means "on board", addressing insurance, documentation and supply chain security. The document also notes what Incoterms do not cover, such as ownership or payment terms. It provides the definition of CFR (Cost and Freight) as an example.
The International Chamber of Commerce published revisions to the International Commercial Terms (INCOTERMS) that take effect on January 1, 2011. The revised INCOTERMS 2010 contain 11 terms, reduced from 13. Two new terms, Delivered at Terminal (DAT) and Delivered at Place (DAP), were added. INCOTERMS 2010 also attempt to better address cargo security and electronic data exchange in international trade. INCOTERMS define obligations and risks involved in delivering goods between a buyer and seller. They do not constitute a sales contract or define title transfer, price, currency or credit terms.
INCOTERMS® 2010
The document discusses Incoterms, which are international commercial terms that define responsibilities of exporters and importers in international shipments. It summarizes the 11 Incoterms rules and how risk and costs transfer between buyers and sellers under each term. The 2010 revisions modified some terms and clarified obligations. Using the correct Incoterm is important for defining costs and responsibilities in international trade agreements.
#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)
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 document provides information on Incoterms® 2010, the 7th revision of internationally recognized trade terms published by the International Chamber of Commerce (ICC). Key points include:
- The new version takes effect January 1, 2011 and replaces some former terms (DAF, DES, etc.) with new terms DAT and DAP.
- It defines obligations and risk/cost transfer between buyer and seller, but not terms like payment, jurisdiction, or warranty.
- Exact specifications of locations, terminals, and ports are important for clear understanding of risk/cost transfer.
13 international freight terms that you should knowVik Aggarwal
This document defines and explains 13 common international freight terms used in international trade. It provides brief definitions and outlines of key responsibilities for each term, including who is responsible for costs, duties, insurance, and when ownership transfers. Some of the key terms covered are EXW, FCA, FOB, CIF, CPT, CIP, DAF, and DDU.
This document provides guidance on key aspects of the import/export process. It defines Incoterms 2020, which clarify responsibilities of buyers and sellers in international commercial trade. It also outlines popular shipping methods, container specifications, guidelines for choosing a freight forwarder, information on free trade agreements and certificates of origin, and differences between FOB and CFR shipping terms. The goal is to educate on important considerations and paperwork involved in global trade transactions.
This document provides an overview of key information about the import and export process. It discusses Incoterms 2020 rules and responsibilities, popular shipping methods and their specifications, factors to consider when choosing a freight forwarder, free trade agreements and certificates of origin, and differences between FOB and CFR terms. The document is intended as general guidance and refers readers to other resources for full details on topics like Incoterms 2020.
The document discusses the International Chamber of Commerce (ICC) and its publication of International Commercial Terms (INCO Terms). It provides an overview of the ICC, its founding in 1919 and headquarters in Paris. It explains that INCO Terms clarify parties' obligations in international trade contracts by specifying responsibilities for costs, risks, and documents related to delivering goods. The document then summarizes the 13 INCO Terms groups and what obligations each term assigns to the buyer and seller.
The document discusses Incoterms, which are international commercial terms that define responsibilities of buyers and sellers in international trade. It defines the 11 current Incoterms, explaining what each means and when they are most appropriate. The terms determine responsibilities for delivery, risk, charges, and where goods possession transfers. The document recommends certain Incoterms like FCA as compromises for small businesses shipping internationally and notes Incoterms should align with other contract elements like payment and import duties. It concludes by providing contact information for the author and Nebraska Business Development Center for international trade consulting.
INCOTERMS are a set of international commercial terms published by the International Chamber of Commerce that define the responsibilities of sellers and buyers for the delivery of goods under sales contracts. First published in 1936, INCOTERMS have been updated several times, most recently in 2020. They provide clarity on issues such as the transfer of risks and costs during international commercial transactions. While INCOTERMS define obligations for delivery, they do not determine other aspects of contracts such as payment terms, remedies for breach, or dispute resolution procedures.
Incoterms are widely used in international commerical transaction or procurement process and there used is encourged by trade councils and international lawers
This document provides an overview of freight clearing and forwarding. It defines key terms like freight, freight clearance, freight forwarding, consignee, consignor, and customs. It explains that freight forwarding involves coordinating the shipment of cargo from one place to another via multiple carriers. The document also summarizes INCOTERMS 2010, which define responsibilities of buyers and sellers in international trade transactions. It outlines several INCOTERMS codes like EXW, FCA, FAS, FOB, CFR, CIF, and CPT and what obligations each place on buyers and sellers.
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.
2. INCOTERMS ®2010 RULES
INTRODUCTION:
The Incoterms®2010 rules explain a set of three-letter trade terms reflecting
business-to-business practice in contracts for the sale of goods. The Inco
terms rules describe mainly the tasks, costs and risks involved in the
delivery of goods from sellers to buyers.
3. INCOTERMS ®2010 RULES
HOW TO USE THE INCOTERMS ®2010 RULES :
1. Incorporate the Inco terms ®2010 rules into your contract of sale.
If you want the Inco terms ®2010 rules to apply to your contract, you
should make this clear in the contract, through such words as, [ the chosen
Inco terms rule including the named place, followed by] Inco terms ®2010“
2. Choose the appropriate Inco terms rules
The chosen Inco terms rules need to be appropriate to the goods, to the
means of their transport, and above all to whether the parties intend to put
additional obligations, for example such as the obligation to organize
carriage and insurance, on the seller or on the buyer. Whichever Inco terms
rule is chosen the parties should be aware that the interpretation of their
contract may well be influenced by customs particularly to the port or place
being used.
4. INCOTERMS ®2010 RULES
HOW TO USE THE INCOTERMS ®2010 RULES :
3. Specify your place or port as precisely as possible.
The chosen Inco terms rule can work only if the parties name a place or port
and will work best if the parties specify the place or port as precisely as
possible. A good example of such precision would be:
Under the Inco terms rules
•(EXW) Ex Works
•(FCA) Free Carrier
•(DAT) Delivered at Terminal
•(DAP) Delivered at Place
•(DDP) Delivered Duty Paid
•(FAS) Free Alongside Ship
•(FOB) Free On Board
5. INCOTERMS ®®2010 RULES
the named place is the place of where delivery takes place and where risk passes
from the seller to the buyer.
Under the Inco terms Rules
•(CPT)Carriage Paid To
•(CIP)Carriage and Insurance Paid To
•(CFR)Cost and Freight Paid to,
• (CIF)Cost ,Insurance and Freight
the named place differs from the place of delivery. Under these four Inco terms
rules, the named place is the place of destination to which carriage is paid.
Indications as to place or destination can helpfully be further specified by stating a
precise point in that place or destination in order to avoid doubt or argument.
6. MAIN FEATURES OF THE
INCOTERMS ®®2010 RULES
MAIN FEATURES OF THE INCOTERMS ®®2010 RULES :
Two new Inco terms rules - DAT and DAP - have been replaced the Inco
terms ®2000 rules DAF, DES. DEQ and DDU :
The Inco terms 2010 contains 3 groups :
“F” Group “FCA,FAS,FOB” the goods price excludes transportation fees
“C” Group “CPT,CIP,CFR,CIF” the goods price includes transportation
“D” Group “DAP,DAT,DDP” the maximum obligations on the seller
7. INCOTERMS ®®2010 RULES
Detailed explanations for INCOTERMS ®®2010 RULES:
EXW - Ex Works ….named place of delivery :
This rule may be used irrespective of the mode of transport selected and
may also be used where more than any mode of transport is employed. It is
suitable for domestic trade, which FCA is usually more appropriate for
international trade.
‐"Ex Works" mean that the seller delivers when it place the goods at the
disposal of the buyers at the seller's premise or at another named place (i.e.
works factory, warehouse, etc.).
‐The Seller does not need to load the goods onto any collecting vehicle, nor
does it need to clear the goods for export clearance process , where such
clearance is applicable.
‐The parties are well advised to specify as clearly as possible the point within
the named place of delivery, as the costs and risks to that points are for the
account of the seller, The buyer bears all costs and risks involved in taking
the goods from the agreed point, if any at the name place of delivery.
8. INCOTERMS ®®2010 RULES
Detailed explanations for INCOTERMS ®®2010 RULES:
FCA - Free Carrier……named place of delivery
This rule may be used irrespective of the mode of transport selected and may also be used
where more than one mode of transport is employed.
‐"Free Carrier" means that the seller delivers the goods to the carrier or
another person nominated by the buyer at the seller's premises or another
named place, The parties are well advised to specify as clearly as possible
the point within the named place delivery as the risk passes to the buyer at
that point.
- If the parties intend to deliver the goods at the seller's premises, they
should identify the address of those premises as the named place of
delivery.
‐FCA requires the seller to clear the goods for export, where applicable.
However, the seller has no obligation to clear the goods for import, pay any
import duty or carry out any import custom formalities.
9. INCOTERMS ®®2010 RULES
Detailed explanations for INCOTERMS ®®2010 RULES :
CIP - CARRIAGE AND INSURANCE PAID TO
This rule may be used irrespective of the mode of transport selected and may
also be used where more than one mode of transport is employed.
‐'' Carriage Insurance Paid To'' , means that the seller delivers the goods to
the carrier or another person nominated by the buyer at an agreed place (if
any such place is agreed between parties) and that the seller must contract
for and pay the cost of carriage necessary to bring the goods to the named
place of destination.
‐The seller also contracts for insurance cover against the buyer's risk of loss
or damage to the goods during the carriage ,
‐When CPT, CIP, CFR or CIF are used , the seller fulfils its obligation to deliver
when it hands the goods over to the carrier and not when the goods reach
the place of destination ,
‐ - CIP requires the seller to clear the goods for the export, where applicable.
However, the seller has no obligation to clear the goods for import, pay any
import duty or carry out any import customs formalities.
10. INCOTERMS ®®2010 RULES
Detailed explanations for INCOTERMS ®®2010 RULES :
DAP - DELIVERED AT PLACE….named place of destination
This rule may be used irrespective of the mode of transport selected and may
also be used where more than one mode of transport is employed.
-'' DELIVERED AT PLACE'' , means that the seller delivers when the goods are
placed at the disposal of the buyer on the arriving means of transport ready
for unloading at the named place of destination. The seller shall bear all risk
involved in bringing the goods to the named place.
-The parties are well advised to specify as clearly as possible the point within
the agreed place of destination, as the risks to that point are for the account
of the seller , the seller is not entitled to recover such costs from the buyer
unless otherwise agreed between parties.
-DAP requires the seller to clear the goods for export, where applicable.
However, the seller has no obligation to clear the goods for import, pay any
duty or carry out any import customs formalities. If the parties wish the
seller to clear the goods for import, pay any duty and carry out any customs
formalities , the DDP terms should be used.
11. INCOTERMS ®®2010 RULES
Detailed explanations for INCOTERMS ®®2010 RULES :
DAT - DELIVERED AT TERMINAL named terminal export or place of
destination
This rule may be used irrespective of the mode of transport selected and may
also be used where more than one mode of transport is employed.
-'' DELIVERED AT TERMINAL'' , means that the seller delivers when the goods,
once unloaded from the arriving means of transport, are placed at the
disposal of the buyer 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 requires the seller to clear the goods for export, where applicable.
However, the seller has no obligation to clear the goods for import, pay any
duty or carry out any import customs formalities. If the parties wish the
seller to clear the goods for import, pay any duty and carry out any customs
formalities, the DDP terms should be used.
12. INCOTERMS ®®2010 RULES
Detailed explanations for INCOTERMS ®®2010 RULES :
DDP - DELIVERED DUTY PAID……named place of destination
This rule may be used irrespective of the mode of transport selected and
may also be used where more than one mode of transport is employed.
-'' DELIVERED DUTY PAID'' , means that the seller delivers when the goods are
placed at the disposal of the buyer, cleared for import on the arriving means
of transport ready for unloading at the named place of destination. The
seller shall bear all costs and risks involved in bringing the goods not only
for export but also for import, to pay any duty for both export and import
and to carry out all customs formalities.
-DDP represents the maximum obligation for the seller.
-The seller is advised to procure contract of carriage that matches this choice
precisely
-The parties are well advised NOT TO USE DDP if the seller is unable directly
or indirectly to obtain import clearance.
- If the parties wish the buyer to bear all risks and costs of import clearance,
DAP rule should be used. - Any VAT or other taxes payable upon import are
for the seller's account unless expressly agreed otherwise in the sales
contract.
13. INCOTERMS ®®2010 RULES
Detailed explanations for INCOTERMS ®®2010 RULES :
FAS - FREE ALONGSIDE SHIP …….named port of shipment
This rule is to be used only for sea or inland waterway transport.
-"Free Alongside Ship" means that the seller delivers when the goods are
placed alongside the vessel (e.g. on a quay or a barge) nominated by the
buyer at the named port of shipment. The risk of loss of or damage to the
goods passes when the goods are alongside the ship and the buyer bears all
costs from that moment onwards.
-Where the goods are in containers, it is typical for the seller to hand the
goods over to the carrier at a terminal and not alongside the vessel. In such
situations, the FAST rule would be inappropriate, and FCA rule should be
used.
-FAS requires the seller to clear the goods for export, where applicable.
However, the seller has no obligation to clear the goods for import, pay any
import duty or carry out any import customs formalities.
14. INCOTERMS ®®2010 RULES
Detailed explanations for INCOTERMS ®®2010 RULES :
FOB - FREE ON BOARD …….named port of shipment
This rule is to be used only for sea or inland waterway transport.
-"FREE ON BOARD" means that the seller delivers the goods on board the
vessel nominated by the buyer at the named port of shipment or procures
the goods already delivered. The risk of loss of or damage to the goods
passes when the goods are ON BOARD the vessel, and the buyer bears all
costs from that moment onwards.
-FOB may not be appropriate where goods are handed over to the carrier
before they are on board the vessel, for example goods in containers, which
are typically delivered at a terminal. In such situations, FCA rule should be
used.
-FOB requires the seller to clear the goods for export, where applicable,
however, the seller has no obligation to clear the goods for import, pay any
duty or carry out any customs formalities.
15. INCOTERMS ®®2010 RULES
Detailed explanations for INCOTERMS ®®2010 RULES :
CFR - COST AND FREIGHT ……named port of destination
This rule is to be used only for sea or inland waterway transport.
-"COST AND FREIGHT" means that the seller delivers the goods on boards the
vessel of procures the goods already so delivered. The risk of loss of or
damage to the goods passes when the goods are on board the vessel. The
seller must contract for and pay the costs and freight necessary to bring the
goods to the named port of destination.
-CFR may NOT be appropriate where goods are handed over to the carrier
before they are on board the vessel, for example goods in containers, which
are typically delivered at a terminal. In such circumstances, the CPT rule
should be used.
-CFR requires the seller to clear the goods for export, where applicable.
However, the seller has no obligation to clear the goods for import, pay any
duty or carry out any import customs formalities.
16. INCOTERMS ®®2010 RULES
Detailed explanations for INCOTERMS ®®2010 RULES :
CIF - COST, INSURANCE AND FREIGHT….named port of
destination
This rule is to be used only for sea or inland waterway transport.
-"COST, INSURANCE AND FREIGHT" means that the seller delivers the goods
on boards the vessel of procures the goods already so delivered. The risk of
loss of or damage to the goods passes when the goods are on board the
vessel. The seller must contract for and pay the costs and freight necessary
to bring the goods to the named port of destination.
-The seller also contracts for insurance cover against the buyer's risk of loss
of or damage to the goods during the carriage,
-CIF may NOT be appropriate where goods are handed over to the carrier
before they are on board the vessel, for example goods in containers, which
are typically delivered at a terminal. In such circumstances, the CPT rule
should be used.
- CIF requires the seller to clear the goods for export, where applicable.
However, the seller has no obligation to clear the goods for import, pay any
duty or carry out any import customs formalities.