Incoterms 2010 Compiled by : J.Radhakrishnan July 2015
Incoterms 2010
Dec 09, 2015
Incoterms 2010 - a brief presentation
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Incoterms 2010 Compiled by :
J.RadhakrishnanJuly 2015
International Commercial Term Who defines INCOTERMS ?
The Incoterms rules are created and published by the International Chamber of Commerce (ICC) and are
revised from time to time. The most recent revision is Incoterms 2010 which came into force on 1st January 2011
What are INCOTERMS ?Incoterms are standard sets of trading terms and
conditions designed to assist traders when goods are sold and transported.
Common terms in Transport
• Seller• Buyer• Risk• Obligation• Responsibility• Insurance• Port• Consignor
• Main Carriage• Pre Carriage• Forwarder• Customs • Export / Import• Duties • Taxes• Consignee
Questions that decide the Incoterm
1) Who is responsible for the main carriage – the buyer or the seller?
2) If the seller is responsible for the main carriage, where does the risk pass from the seller to the buyer – before the main carriage, or after it?
What is Risk ?Why is insurance required ?
Risk ?
Risk ?
Risk ?
Risk ?
Risk ?
Risk ?
Risk ?
Risk ?
Risk ?
Risk ?
Elements of Cost in transportation
Packaging Loading charges Delivery to the port / place Export duty and taxes Origin Terminal charges Loading on Carriage Carriage charges Insurance Destination terminal charges Delivery to destination Import duty & taxes
Classification of Incoterms
Group E : Departure termEXW
Group F : Shipment term- Main carriage unpaid FCA, FAS, FOB
Group C: Shipment term – Main carriage paidCFR, CIF, CPT, CIP
Group D: Arrival termDDP, DAP, DAT
Incoterm – Four Groups
• Buyer responsible for all carriage – EXW
• Buyer arranges main carriage – FAS; FOB; FCA
• Seller arranges main carriage, but risk passes before main carriage – CFR; CIF; CPT; CIP
• Seller arranges main carriage, risk passes after main carriage – DAT; DAP; DDP
South Carolina
EXW
Group E - Departure: EXW. Ex Works (named place)
SELLER
BUYER
------ = Buyer’s COST & CONTROL
South Carolina
FCAFASFOB
Group F - Main Carriage Unpaid: FCA Free Carrier (named place) – previously FRC FAS Free Alongside Ship (named loading port) FOB Free On Board (named loading port)
SELLER
BUYER
=Seller’s COST & CONTROL
------ = Buyer’s COST & CONTROL
FCA
FCA
South Carolina
CFRCIFCPTCIP
Group C - Main Carriage Paid: (by the seller)CFR Cost and Freight (named destination port) CIF Cost, Insurance and Freight (named destination port) CPT Carriage Paid To (named destination) CIP Carriage and Insurance Paid to (named destination
SELLER
BUYER
=Seller’s COST & CONTROL
------ = Buyer’s COST & CONTROL
CPTCIP
South Carolina
DDUDDP
Group D - Arrival: DAF Delivered At Frontier (named place) DES Delivered Ex Ship (named port) DEQ Delivered Ex Quay (named port) DDU Delivered Duty Unpaid (named destination place) DDP Delivered Duty Paid (named destination place)
SELLER
BUYER
=Seller’s COST & CONTROL
------ = Buyer’s COST & CONTROL
DESDEQ
DAF
DDUDDP
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