Introduction of International Transport Managementvuongnga4
This module aims to provide logistics industry and other associated functions participants with :
an understanding on the impact of global logistics & supply chain on international transportation business today
an appreciation of the concept and application of supply chain & logistics
an understanding on the major similarities and differences between domestic and global logistics
This module aims to provide logistics industry and other associated functions participants with :
an understanding on the elements of transport logistics and the development of international seaborne trade
an overview on the role of a shipbroker and the different types of chartering – voyage, time and demise or bareboat charters
This module aims to provide logistics industry and other associated functions participants with :
an understanding on the liner service, value of service and the liner conference systems
an understanding on the concept and application of International Air Transportation
an overview on the concept of technology strategy
This module aims to provide logistics industry and other associated functions participants with :
an understanding on the shipper and carrier utilize strategies to manage their respective networks
an appreciation of the role of the logistics and transportation in international supply chain management
an appreciation of macro trends that will impact
the international logistics and transportation
management future
This module aims to provide logistics industry and other associated functions participants with :
an understanding on the shipper and carrier utilize strategies to manage their respective networks
an appreciation of the role of the logistics and transportation in international supply chain management
an appreciation of macro trends that will impact
the international logistics and transportation
management future
Chaper 1:
Appreciate the role of transportation in supply chains
Appreciate the impact of transportation on the
economy and the environment
Understand the trade-offs in transportation systems
Review the concept of derived demand
Appreciate INCOTERMS 2010 in transportation
Transportation represents the single most important element in logistical costs for most firms
Typically about a half of logistics costs are absorbed by transport
Transportation is the physical link connecting the firm to its suppliers and customers
The supply chain is a system of links between nodes where goods are stored
Hence, transportation bridges these gaps
Transport and The Economy
Transport is not just a movement of people and products through space and time
Transport procurement involves the purchase of
a “Bundle of services”
3 Factors:
Movement service (speed, reliability and
frequency)
Equipment used (freight and passengers)
Costs
Business Decisions Affected by Transportation
Production decision
What product(s) to produce ?
Market Area decision
Where the product(s) should be sold ?
Purchasing decisio
Introduction of International Transport Managementvuongnga4
This module aims to provide logistics industry and other associated functions participants with :
an understanding on the impact of global logistics & supply chain on international transportation business today
an appreciation of the concept and application of supply chain & logistics
an understanding on the major similarities and differences between domestic and global logistics
This module aims to provide logistics industry and other associated functions participants with :
an understanding on the elements of transport logistics and the development of international seaborne trade
an overview on the role of a shipbroker and the different types of chartering – voyage, time and demise or bareboat charters
This module aims to provide logistics industry and other associated functions participants with :
an understanding on the liner service, value of service and the liner conference systems
an understanding on the concept and application of International Air Transportation
an overview on the concept of technology strategy
This module aims to provide logistics industry and other associated functions participants with :
an understanding on the shipper and carrier utilize strategies to manage their respective networks
an appreciation of the role of the logistics and transportation in international supply chain management
an appreciation of macro trends that will impact
the international logistics and transportation
management future
This module aims to provide logistics industry and other associated functions participants with :
an understanding on the shipper and carrier utilize strategies to manage their respective networks
an appreciation of the role of the logistics and transportation in international supply chain management
an appreciation of macro trends that will impact
the international logistics and transportation
management future
Chaper 1:
Appreciate the role of transportation in supply chains
Appreciate the impact of transportation on the
economy and the environment
Understand the trade-offs in transportation systems
Review the concept of derived demand
Appreciate INCOTERMS 2010 in transportation
Transportation represents the single most important element in logistical costs for most firms
Typically about a half of logistics costs are absorbed by transport
Transportation is the physical link connecting the firm to its suppliers and customers
The supply chain is a system of links between nodes where goods are stored
Hence, transportation bridges these gaps
Transport and The Economy
Transport is not just a movement of people and products through space and time
Transport procurement involves the purchase of
a “Bundle of services”
3 Factors:
Movement service (speed, reliability and
frequency)
Equipment used (freight and passengers)
Costs
Business Decisions Affected by Transportation
Production decision
What product(s) to produce ?
Market Area decision
Where the product(s) should be sold ?
Purchasing decisio
Multimodal transport is essentially an international through-transport combination with various modes of transport such as ship, rail, truck, airplane, etc., primarily through the use of containers.
Multimodal Transport: Where the carrier organising the transport takes responsibility for the entire door-to-door transport and issues a multimodal transport document.
A multimodal transport operator (MTO) acts as a principal and therefore as a “carrier”, because the MTO contracts with the shipper to carry goods by one or more modes of transport as may be necessary. The MTO has accepted total responsibility and liability to perform the transport contract; he has become the sole interface point for the shipper’s transport function.
The series of slides are an Introduction to Logistics Functions. Logistics can be defined as the science of organizing the Distribution Function. The presentation also defines distribution management. It also talks about Porter’s value chain. This presentation is a Welingkar’s Distance Learning Division initiative.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/DistMang
Join us on Facebook: http://www.facebook.com/welearnindia
Follow us on Twitter: https://twitter.com/WeLearnIndia
Read our latest blog at: http://welearnindia.wordpress.com
Subscribe to our Slideshare Channel: http://www.slideshare.net/welingkarDLP
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.
A brief overview of logistics management covering the following: the aim of logistics, components of logistics, major functions of logistics and the phases of logistics management.
Multimodal transport is essentially an international through-transport combination with various modes of transport such as ship, rail, truck, airplane, etc., primarily through the use of containers.
Multimodal Transport: Where the carrier organising the transport takes responsibility for the entire door-to-door transport and issues a multimodal transport document.
A multimodal transport operator (MTO) acts as a principal and therefore as a “carrier”, because the MTO contracts with the shipper to carry goods by one or more modes of transport as may be necessary. The MTO has accepted total responsibility and liability to perform the transport contract; he has become the sole interface point for the shipper’s transport function.
The series of slides are an Introduction to Logistics Functions. Logistics can be defined as the science of organizing the Distribution Function. The presentation also defines distribution management. It also talks about Porter’s value chain. This presentation is a Welingkar’s Distance Learning Division initiative.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/DistMang
Join us on Facebook: http://www.facebook.com/welearnindia
Follow us on Twitter: https://twitter.com/WeLearnIndia
Read our latest blog at: http://welearnindia.wordpress.com
Subscribe to our Slideshare Channel: http://www.slideshare.net/welingkarDLP
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.
A brief overview of logistics management covering the following: the aim of logistics, components of logistics, major functions of logistics and the phases of logistics management.
#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)
The knowledge of INCO terms is very essential for those who are in export import business on the other hand it is also useful for the students of commerce and management.
KuberTENes Birthday Bash Guadalajara - K8sGPT first impressionsVictor Morales
K8sGPT is a tool that analyzes and diagnoses Kubernetes clusters. This presentation was used to share the requirements and dependencies to deploy K8sGPT in a local environment.
A review on techniques and modelling methodologies used for checking electrom...nooriasukmaningtyas
The proper function of the integrated circuit (IC) in an inhibiting electromagnetic environment has always been a serious concern throughout the decades of revolution in the world of electronics, from disjunct devices to today’s integrated circuit technology, where billions of transistors are combined on a single chip. The automotive industry and smart vehicles in particular, are confronting design issues such as being prone to electromagnetic interference (EMI). Electronic control devices calculate incorrect outputs because of EMI and sensors give misleading values which can prove fatal in case of automotives. In this paper, the authors have non exhaustively tried to review research work concerned with the investigation of EMI in ICs and prediction of this EMI using various modelling methodologies and measurement setups.
NO1 Uk best vashikaran specialist in delhi vashikaran baba near me online vas...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
Water billing management system project report.pdfKamal Acharya
Our project entitled “Water Billing Management System” aims is to generate Water bill with all the charges and penalty. Manual system that is employed is extremely laborious and quite inadequate. It only makes the process more difficult and hard.
The aim of our project is to develop a system that is meant to partially computerize the work performed in the Water Board like generating monthly Water bill, record of consuming unit of water, store record of the customer and previous unpaid record.
We used HTML/PHP as front end and MYSQL as back end for developing our project. HTML is primarily a visual design environment. We can create a android application by designing the form and that make up the user interface. Adding android application code to the form and the objects such as buttons and text boxes on them and adding any required support code in additional modular.
MySQL is free open source database that facilitates the effective management of the databases by connecting them to the software. It is a stable ,reliable and the powerful solution with the advanced features and advantages which are as follows: Data Security.MySQL is free open source database that facilitates the effective management of the databases by connecting them to the software.
Hierarchical Digital Twin of a Naval Power SystemKerry Sado
A hierarchical digital twin of a Naval DC power system has been developed and experimentally verified. Similar to other state-of-the-art digital twins, this technology creates a digital replica of the physical system executed in real-time or faster, which can modify hardware controls. However, its advantage stems from distributing computational efforts by utilizing a hierarchical structure composed of lower-level digital twin blocks and a higher-level system digital twin. Each digital twin block is associated with a physical subsystem of the hardware and communicates with a singular system digital twin, which creates a system-level response. By extracting information from each level of the hierarchy, power system controls of the hardware were reconfigured autonomously. This hierarchical digital twin development offers several advantages over other digital twins, particularly in the field of naval power systems. The hierarchical structure allows for greater computational efficiency and scalability while the ability to autonomously reconfigure hardware controls offers increased flexibility and responsiveness. The hierarchical decomposition and models utilized were well aligned with the physical twin, as indicated by the maximum deviations between the developed digital twin hierarchy and the hardware.
3. Responsibilities
of Parties
The responsibilities and costs between the
parties for:
• Licenses and government imposed
formalities for import & export
• Packing and marking for international
transport
• Documentation required for the
transport, transfer and Customs
clearance of goods
• Proof of delivery
• Taxes, duties, consular fees, terminal
charges, arrival & destination charges
• Insurance, when elected
• Loading and unloading
• International and inland transport
• Risk of loss or damage
3
4. Price
Schedule
• Item description.
• Country of origin.
• Quantity.
• Unit price FOB.
• Unit price CIF, CIP ( Port of
destination, Place of destination)
• Total price.
• Unit price of Inland delivery to final
destination and unit price for other
incidental services (if any).
Price Schedule
Price Schedule
Sample
4
5. Price Schedule
5
9
8
7
6
5
4
3
2
1
Total Price
per Line item
(Col. 7+8)
Price per
line item
for inland
transportat
ion and
other
services
required in
the
Purchaser’
s country
to convey
the Goods
to their
final
destination
specified
in BDS
CIP
(named
palce)
Price
per line
item
(Col.
5x6)
Unit
price
CIP
[insert
place of
destinatio
n]
in
accordan
ce with
ITB
14.6(b)(i)
Quanti
ty and
physic
al unit
Deli
very
Date
as
defin
ed
by
Incot
erms
Cou
ntry
of
Origi
n
Descriptio
n of
Goods
Lin
e
Ite
m
N
6. Schedule of
Delivery
• This schedule should cover description
of goods and services to be supplied
and delivery dates.
• Destination of delivery should be
carefully specified as per used
INCOTERMS (CIF, CIP etc.)
• The date prescribed herein from which
the seller’s delivery obligation starts (i.e.
from notice of awards or contract
signature or opening or confirmation of
L/C) should be stated clearly.
• There may be range of acceptable
delivery periods.
6
7. Background - Introduction
• INCOTERMS are the terms of trade in
business
• Published and developed by the
International Chamber of Commerce
(ICC)
• First established in 1936, updated
periodically with the latest version being
“INCOTERMS 2020”
7
8. INCOTERMS
What are INCOTERMS?
The official rules of International Chamber
of Commerce (ICC) for the interpretation
of trade terms accepted by governments,
legal authorities and practitioners
worldwide
Explanation of Obligations of seller and
buyer regarding delivery, division of cost,
transfer of risk, packing, Inspection of
goods, contract of carriage and Insurance,
proof of delivery etc.
8
9. Purpose of
INCOTERMS
To facilitate the international trade so that goods are sold in
more countries, in larger quantities, & in greater variety
To clearly define the respective obligations of seller & buyer
To reduce the risk of legal complication in a sales contract
To respond to the global business needs everywhere
Reduces or removes uncertainties arising from differing
interpretations of shipping terms in different countries.
Reference to a proper INCOTERMS in a contract clearly
defines each party’s obligations, costs and risks in the
international transaction and reduces the risk of legal
complications.
They can assist in defining what costs the purchase price
includes (e.g. prepaid international freight, prepaid duties,
insurance, etc.), and clarify the risks & liabilities.
Eliminates ambiguities or inconsistencies of country‐specific
sales and shipping contracts.
Makes it easy for sellers and buyers to identify and manage
the costs and liabilities of transporting cargo between source
and delivery/ destinations.
9
10. INCOTERMS 2020
Group E Departure.
EXW Ex Works (…named place)
Group F Main carriage unpaid.
FCA Free Carrier (…named place)
FAS Free Alongside ship (…named port of shipment)
FOB Free on Board (…named port of shipment)
Group C Main carriage Paid
CFR Cost and Freight (…named port of destination)
CIF Cost Insurance and Freight (…named port of destination)
CPT Carriage Paid To (…named place of destination)
CIP Carriage and Insurance Paid (…named place of destination)
Group D Arrival
DPU DPU (Delivered at Place Unloaded)
DAP Delivered At Place(…named place)
DDP Delivered Duty Paid (…named place of destination)
10
11. Organization of INCOTERMS
Organization of INCOTERMS
Incoterms are divided into four (4) categories:
• “E” term (Departure) – Seller makes the goods available to the buyer
at the seller’s premises or other place named by the seller
• “F” terms(Main Carriage Unpaid) – Seller is responsible to deliver the
goods to the export shipment point and carrier designated by the
buyer
• “C” terms (Main Carriage Paid)– Seller is responsible for contracting
carriage of goods to the place of destination, but does not assume
risk of loss or damage to goods, or additional costs due to events
occurring after shipment
• “D” terms (Arrival)– Seller is responsible for all costs and risks
associated with delivering goods to the named place in the country
of destination
The point at which liability and carriage transfer from the seller to the
buyer distinguishes the groups and each group’s letter corresponds to
the first letter of an INCOTERM
11
12. INCOTERMS 2020
Forany
modeof
transport
1.EXW ExWorks(…namedplace)
2.FCA FreeCarrier(…namedplace)
3.CPT Carriage Paid To (…named place of
destination)
4.CIP Carriage and Insurance Paid (…named place
ofdestination)
5.DPU DPU(DeliveredatPlaceUnloaded)
6.DAP DeliveredAtPlace(…namedplace)
7. DDP Delivered Duty Paid (…named place of
destination)
12
14. Ex ‐
Works
• Seller delivers when it places the goods at the
disposal of buyer at the seller’s premises or another
named place (i.e. works, factory, warehouse, etc.).
• Seller has no obligation to load goods on any
collecting vehicle, nor does it need to clear the
goods for export, where such clearance is
applicable.
• If seller does load goods, it does so at buyer’s
expense and risk
• Better‐suited to domestic transport (no obligation
that seller clear goods for export—only provide
assistance if necessary at buyer’s expense and risk)
• Buyer bears all risk of loss from time seller places
goods at buyer’s disposal
• Difficult to use with controlled items due to license
issues
• Example:‐Exw (Factory, Biratnagar , Nepal) 14
16. FCA (Free Carrier)
• Improvements over Ex Works
• Seller delivers the goods to the carrier or another person
nominated by the buyer at the seller’s premises or another named
place. The risk passes to the buyer at that point.
• Seller does clear goods for export; import formalities are buyer’s
responsibility
• Seller may contract for carriage at buyer’s expense and risk
• If the named place is seller’s premises: seller must load goods
onto buyer’s means of transport
• If the named place is any other place: seller must place the goods
at buyer’s (or his carrier’s disposal) on seller’s mode of transport
(ready for unloading).
• Seller clears goods for export
• Buyer has costs in addition to sales price that must be calculated
• Seller has no control over carrier, insurance, etc.
•the buyer instructs the carrier to issue the transport document
(bill of landing) with the on-board notation to the seller. 16
18. CPT (Carriage paid to)
• Seller delivers the goods to the carrier or another person
nominated by the seller at an agreed place and the seller must
contract for and pay the costs of carriage necessary to bring the
goods to the named place of destination.
• 2 points of importance
•Place of delivery of goods to carrier
•Seller’s delivery obligation is complete
• Risk of loss passes to the buyer.
• Seller clears goods for export and pays for transport through any
country necessary to delivery
• Seller has no obligation to pay for insurance but must provide
buyer information to buy insurance at buyer’s risk and expense
• Buyer obtains import licenses and carries out customs formalities
• Seller pays for both loading and unloading if covered by contract of
carriage 18
19. CPT (CARRIAGE PAID TO)
An Example:
• Contract says seller is to deliver goods to shipping warehouse in
Jawaharlal Nehru Port Trust (JNPT) at Navi Mumbai. Terms of sale are
“CPT buyer’s facility, Kathmandu, Nepal (Incoterms 2020).”
• Delivery obligation is fulfilled when seller delivers to the shipping facility
in JNPT.
• Risk of loss passes at the moment the goods are handed over to the
carrier in JNPT.
• But seller pays for carriage to Kathmandu, Nepal.
Important Points :
• Seller clears goods for export and pays for transport through any country
necessary to delivery
• Seller has no obligation to pay for insurance but must provide buyer
information to buy insurance at buyer’s risk and expense
• Buyer obtains import licenses and carries out customs formalities
• Seller pays for both loading and unloading if covered by contract of
carriage
19
21. CIP (Carriage and Insurance Paid to)
• Seller delivers the goods to the carrier or another person nominated
by the seller at an agreed; seller must contract for and pay the costs
of carriage necessary to bring the goods to the named place of
destination.
• Like CPT but with the additional requirement that seller pay for
insurance to the named destination
• Insurance requirement is minimum cover (institute cargo clause “c”)
in the amount of contract price plus 10% from point of delivery to
point of destination
• Buyer may pay for additional coverage (institute cargo clauses “a” or
“b”); seller must provide the information necessary to allow buyer to
do so
• Example:‐CIP (Project site, Kathmandu, Nepal)
21
23. DAP
(Delivered
at Place)
• 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 bears all risks involved in bringing the good to
the named place.
• Much like DPU, but with additional obligation by seller
into country of delivery
• Goods are placed at buyer’s disposal at named location
ready for unloading; risk passes at that point
• Seller clears goods for export but not import (use DDP if
intent is to require seller to clear goods for import also).
• No obligation on seller to purchase insurance
• Example:‐DAP (Birganj, Nepal) 23
25. DPU (Delivered at Place Unloaded)
• The DPU Incoterm represents a new feature of the 2020 Incoterms
which has replaced the DAT Incoterm (Delivered at Terminal)
established under the 2010 Incoterms which, in turn, had replaced
DEQ Incoterm (Delivered ex Quay) established under the 2000
Incoterms.
• According to the DPU Incoterm, the delivery of the goods by
the seller to the buyer occurs when the goods are unloaded
from the transportation vehicle and put at the disposal of
the buyer at the place of destination or at the agreed point
within the place of destination, if any.
• It is the only Incoterm “that requires the seller to unload
goods at destination.” Again, the place of delivery and the
place of destination are the same under the DPU Incoterm.
• The seller bears the risk until it has unloaded the goods at
the place of destination.
25
27. DDP (Delivered Duty Paid)
• Seller delivers the goods 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 bears all the costs and risks involved in bringing the goods to the
place of destination and has an obligation to clear 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.
• Like DAP, but including seller’s obligation to clear goods for import—
•pay for any necessary licenses
• Maximum obligation for seller
• If seller is not well‐suited to clear goods for import, DAP should be used
• No obligation to pay for insurance
•Parties may exclude from the seller's obligations some of the costs payable
upon import of the goods (such as VAT).
•Example:‐DDP (Project site, Kathmandu, Nepal) 27
30. FAS (Free Alongside Ship)
• 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, the buyer bears all costs from the moment
onwards.
• Seller is obligated to clear goods for export but not import
• Seller has no obligation to pay for contracts of carriage or insurance
but may contract for carriage and must assist buyer by providing
necessary information for insurance
• Example:‐FCA (Tokyo, Japan) 30
32. FOB (Free on Board)
• Seller delivers the goods on board the vessel nominated by
the buyer at the named port of shipment or 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, and the buyer bears all costs
from that moment onwards.
• Another change in 2010: if requested by buyer or if it is
commercial practice and buyer does not instruct otherwise,
seller may contract for carriage at buyer’s risk and expense;
seller may decline but must notify buyer promptly
• Therefore, may want to exclude if that is the intent
• Like FAS but goods must be placed on board
• Example: “FOB Chennai, TN,INDIA (Incoterms 2010)”
32
34. CFR (Cost and Freight)
•Seller delivers the goods on board the vessel.
•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.
•Risk of loss passes when the goods are on board the vessel
•Seller pays for carriage to port of destination
•Seller’s delivery obligation is fulfilled when the goods are on board
•Seller clears goods for export but not import
•Seller has no obligation to obtain insurance
•If intent to ship in containers and delivery is to carrier other than vessel, use
CPT 34
35. CFR (Cost and Freight)
Examples:
• Contract says: Seller is to deliver goods on board vessel at Port of
Charleston, SC, USA. Terms of sale are: “CFR, Kolkata, India
(Incoterms 2010).”
• Seller’s delivery obligation is fulfilled when the goods are on
board the vessel in Port of Charleston, SC, USA; risk of loss passes
to buyer
• Seller must pay for shipment to , Kolkata, India
• Seller pays for unloading if the contract of carriage covers
unloading
• Seller clears goods for export but not import
• Seller has no obligation to obtain insurance
• If intent to ship in containers and delivery is to carrier other than
vessel, use CPT 35
37. CIF (Cost, Insurance and Freight)
• Seller delivers the goods on board the vessel.
• The risk of loss of 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.
• Like CFR but with additional obligation to procure
insurance to port of destination
• Insurance requirement is minimum cover (institute cargo
clause c) in the amount of contract price plus 10% from
point of delivery to point of destination
• Seller clears goods for export but not import
37
39. Basis to
choose
INCOTERMS
• Willingness of both parties
• Company policy
• Market place tradition
• Bargaining position
• Freight purchasing power
• Just‐in‐time
• Legal, Financial restriction by
importer
• Transport infrastructure
• Types of cargo
• Value of goods
• Mode of transport
39
40. Remember
• Use the phrase “Incoterms 2010” or “Incoterms 2020” after the rule
and named place
• E (Make goods available at own premises)
• F (Deliver goods to a carrier appointed by buyer)
• C (Contract for carriage without assuming risk of loss during
shipment)
• D (Bear all costs and risks needed to bring goods to place of
destination)
• But remember rules are split by mode of transport
• Usage—ensure you are naming the right location
• Use contract of sale or terms and conditions
• Be careful on modifying Incoterms Rules
• If you modify rules (not advised), ensure contract clarifies what you
are modifying
40
41. Each Incoterm contains a set of rules of interpretation for the
obligations of both the seller (A1-A10) and the buyer (B1-B10)
covering the following issues:
A1/B1 – General Obligations,
A2/B2 – Delivery,
A3/B3 – Transfer of risks,
A4/B4 – Carriage,
A5/B5 – Insurance,
A6/B6 – Delivery/transport document,
A7/B7 – Export/import clearance,
A8/B8 – Checking/packaging/marking,
A9/B9 – Allocation of costs, and
A10/B10 – Notices.
42. Notes on
Responsibilities
•For all Incoterms, the Seller packs,
verifies contents and marks the
goods for export.
•Seller always has responsibility to
provide these documents:
•Commercial Invoice
•Packing List
•Certificate of Origin
•The Seller also is obligated to
assist the Buyer (at buyer’s
expense) in obtaining
documentation required for
export or import.
•For all Incoterms, the Seller packs,
verifies contents and marks the
goods for export.
•Seller always has responsibility to
provide these documents:
•Commercial Invoice
•Packing List
•Certificate of Origin
•The Seller also is obligated to
assist the Buyer (at buyer’s
expense) in obtaining
documentation required for
export or import.
43. Notes on
Responsibilities
& Costs
•The Buyer is responsible for the costs of any formal
pre‐shipment inspection of goods that may be
required by the authorities of either the exporting or
importing country.
•Each party must provide Proofs of Delivery and timely
notifications to the other when goods are delivered
and/or received.
•Costs that are the Seller’s obligation could be billed to
the Buyer but does not change the risks &
responsibilities of Incoterms.
•The Buyer is responsible for the costs of any formal
pre‐shipment inspection of goods that may be
required by the authorities of either the exporting or
importing country.
•Each party must provide Proofs of Delivery and timely
notifications to the other when goods are delivered
and/or received.
•Costs that are the Seller’s obligation could be billed to
the Buyer but does not change the risks &
responsibilities of Incoterms.
44. Limitations
of
INCOTERMS
• Scope is limited to matters relating to the rights
and obligations of the parties to the contract with
respect to the delivery of goods.
• Generally, they don’t deal with the consequences
of:
• Breach of contract.
• Any exemptions from liability.
• Transfer of ownership and other property
right.
• Sellers shoulder minimal liabilities when using
Group E Incoterms, which essentially transfer most
obligations to buyers.
• Group F Incoterms afford buyers the tolerance for
controlling supply chain with respect to the arrival
of shipments and subsequent posting of the
shipments in inventories.
45. Limitations
of
INCOTERMS
•Group C Incoterms generally expose the buyers to
inflated costs, because the seller bears the
responsibilities for paying freight and insurance
costs.
•This is a disadvantage to the importer, especially if
the exporter chooses to quote the final figure
without itemizing the individual entries for freight,
insurance and currency fluctuation costs.
•Buyer accounting for an inventory of expensive
shipments may experience delays as Incoterms do
not cover the transfer of titles or ownership. This can
be disappointing.
46. Final Words
• Use the phrase “Incoterms 2010” after the rule and
named place
• division of rules by seller’s obligation
E (Make goods available at own premises)
F (Deliver goods to a carrier appointed by buyer)
C (Contract for carriage without assuming risk of loss
during shipment)
D (Bear all costs and risks needed to bring goods to
place of destination)
• Remember rules are split by mode of transport
• Ensure you are naming the right location
• Use contract of sale or terms and conditions
• Be careful modifying Incoterms Rules
• If you modify rules (not advised), ensure contract
clarifies what you are modifying