Incoterms. by Nakul

7/31/2019 Incoterms. by Nakul

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Presented By:

Nakul Khatri

INCOTERMS 2000

31st March 2012 1IMDR,Pune


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First published by the ICC in 1936

ICC (International Chamber of Commerce) Official

Rules for the Interpretation of Trade terms.

Purpose is to provide a set of international rules forthe interpretation of the most commonly used tradeterms.

10 categories describing where risks lie betweenseller and buyer

International Commercial Terms (INCOTERMS)

INCOTERMS 2000



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The E-term is the term in which the sellers obligation

is at its minimum.

Incoterms 2000



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Carriage to be arranged by the BUYER

Risk is transferred from SELLER to BUYER as the goods

leave the factory premises

Entire cost is to be incurred by BUYER

EXW

EX WORKS (named place)

31st March 2012 IMDR,Pune 4


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EXWEx Works (named place)

SELLER BUYER

Seller/

ExporterPremises

Export

DocumentsFormalities

Delivered

at namedplace of:

Frontier/

Terminal/

Quay

Loading

Port ofShipment

Onboard

ShipRail

Plane

Ships Ships

Rail Rail

Discharging

Port ofArrival

Delivery at

named place ofdestination:

Frontier/

Terminal/Quay

Import


Buyer/

ImporterPremises

Sellers

Risks

Buyers Risks

Sellers

Cost

Buyers Cost



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The F terms require the seller to delivergoods for carriage as instructed by the buyer.

FCA

FAS

FOB

Incoterms 2000



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Seller delivers when goods, cleared forexport, to the carrier nominated by the buyer

at a named place.Term may be used irrespective of the mode

of transport.

Seller obligated to load goods on arrivingvehicle if it arrives at the sellers premises.

Seller not obliged to unload goods from hisvehicle.

FCA

FREE CARRIER (named place)



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FCAFree Carrier(named place)

SELLER BUYER

Seller/

Exporter

Premises

Export

Documents

Formalities

Delivered

at named

place of:

Frontier/

Terminal/

Quay

Loading

Port of

Shipment

Onboard

Ship

Rail

Plane

Ships Ships

Rail Rail

Discharging

Port of

Arrival

Delivery at

named place of

destination:

Frontier/

Terminal/Quay

Import

Documents

Formalities

Buyer/

Importer

Premises

Sellers Risks Buyers

Risks

SellersCost Buyers Cost



9/35

Seller delivers when goods, cleared for export,are placed alongside the vessel

Seller obliged to clear goods for export.

The buyer bears all costs and risks of loss ordamage to the goods from that moment.

Terms can be used for sea or inland waterwaytransport only.

FAS -FREE ALONGSIDE SHIP

(named port of shipment)



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FASFree Alongside(named place)

SELLER BUYER

Seller/

ExporterPremises

Export


Delivered

at namedplace of:

Frontier/

Terminal/

Quay

Loading

Port ofShipment

Onboard

ShipRail

Plane

Ships Ships

Rail Rail

Discharging

Port ofArrival

Delivery at


Frontier/

Terminal/Quay

Import


Buyer/

ImporterPremises


Risks




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Seller delivers when goods, cleared forexport, pass the ships rail at the named port

of shipment.The buyer bears all costs and risks of loss or

damage to the goods from that point.

Term can be used for sea or inland waterwaytransport only.

If intent is not to deliver goods across theships rail, use FCA

FOB FREE ON BOARD

(named port of shipment)



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FOBFree On Board(named port of shipment)

SELLER BUYER

Seller/

Exporter

Premises

Export

Documents

Formalities

Delivered

at named

place of:

Frontier/

Terminal/

Quay

Loading

Port of

Shipment

Onboard

Ship

Rail

Plane

Ships Ships

Rail Rail

Discharging

Port of

Arrival

Delivery at

named place of

destination:

Frontier/

Terminal/Quay

Import

Documents

Formalities

Buyer/

Importer

Premises


Risks




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The C terms require the seller to contract forcarriage at his expense to a specified point.

CFRCIF

CPT

CIP

Incoterms 2000



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Seller delivers when goods, cleared for export,

pass the ships rail at the named port of

shipment.The seller pays the costs and freight necessary tobring goods to port of destination, but the buyerbears the risk of loss and additional costsoccurring after delivery.

Term can be used for sea or inland waterwaytransport. If intent is not to deliver goods across the ships

rail, use CPT

CFR COST AND FREIGHT

(named port of destination)



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CFRCost and Freight (named port of destination)

SELLER BUYER

Seller/Exporter

Premises

ExportDocuments

Formalities

Deliveredat named

place of:

Frontier/

Terminal/

Quay

LoadingPort of

Shipment

OnboardShip

Rail

Plane

Ships Ships

Rail Rail

DischargingPort of

Arrival

Delivery atnamed place of

destination:

Frontier/

Terminal/Quay

ImportDocuments

Formalities

Buyer/Importer

Premises

Sellers Risks Buyers Risks

Sellers Cost Buyers Cost



16/35

Seller delivers when goods, cleared for export, pass the

ships rail at the named port of shipment.

The seller pays the costs and freight necessary to bringgoods to port of destination, but the buyer bears the riskof loss and additional costs occurring after delivery.

The seller procures marine insurance, against buyersrisk of loss. Seller is required to obtain insurance onlyon minimum cover.

Term can be used for sea or inland waterway transport.

If intent is not to deliver goods across the ships rail, useCIP.

CIF COST, INSURANCE AND

FREIGHT(named port of destination)



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CIFCost, Insurance and Freight (named port of destination)

SELLER BUYER

Seller/Exporter

Premises

ExportDocuments

Formalities

Deliveredat named

place of:

Frontier/

Terminal/

Quay

LoadingPort of

Shipment

OnboardShip

Rail

Plane

Ships Ships

Rail Rail

DischargingPort of

Arrival

Delivery atnamed place of

destination:

Frontier/

Terminal/Quay

ImportDocuments

Formalities

Buyer/Importer

Premises

Sellers

RisksBuyers Risks

SellersCosts

Buyers Cost



18/35

Seller delivers the goods, cleared for export,to the carrier.

The seller pays the costs of carriage necessaryto bring goods to named destination, but thebuyer bears the risk of loss and additional

costs occurring after delivery.Term may be used irrespective of mode of

transport.

CPT CARRIAGE PAID TO

(named place of destination)



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CPTCarriage Paid To (named port of destination)

SELLER BUYER

Seller/

Exporter

Premises

Export

Documents

Formalities

Delivered

at named

place of:

Frontier/

Terminal/

Quay

Loading

Port of

Shipment

Onboard

Ship

Rail

Plane

Ships Ships

Rail Rail

Discharging

Port of

Arrival

Delivery at

named place of

destination:

Frontier/

Terminal/Quay

Import

Documents

Formalities

Buyer/

Importer

Premises


Risks

Sellers Cost Buyers

Costs



20/35

Seller delivers the goods, cleared for export, the thecarrier.

The seller pays the costs of carriage to nameddestination, but the buyer bears the risk of loss andadditional costs occurring after delivery.

The seller procures insurance against buyers risk of

loss. Seller is required to obtain insurance only on aminimum cover.

Term may be used irrespective of mode of transport.

CIP CARRIAGE AND INSURANCE PAIDTO (named place of destination)



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CIPCarriage and Insurance Paid To (named port of destination)

SELLER BUYER

Seller/

ExporterPremises

Export


Delivered

at namedplace of:Frontier/Terminal/

Quay

Loading

Port ofShipment

Onboard

ShipRail

PlaneShips ShipsRail Rail

Discharging

Port ofArrival

Delivery at


Frontier/Terminal/Quay

Import


Buyer/

ImporterPremises

Sellers Risks Buyers Risks

Sellers Cost Buyers Cost



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The D terms require the seller to take thegoods all the way to destination at the border

or within the country of import.DAF

DES

DEQDDU

DDP

Incoterms 2000



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Seller delivers goods to the buyer, not cleared forimport, and not unloaded, at the named place of

destination. Seller bears all costs and risks (except duty) to bring

goods to the named place of destination.


If delivery is to take place at the port, quay or onboard a vessel, DES or DEQ should be used.

DDU DELIVERED DUTY UNPAID(named place of destination)



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DDUDelivered Duty Unpaid(named place of destination)

SELLER BUYER

Seller/

Exporter

Premises

Export

Documents

Formalities

Delivered

at named

place of:

Frontier/

Terminal/

Quay

Loading

Port of

Shipment

Onboard

Ship

Rail

Plane

Ships Ships

Rail Rail

Discharging

Port of

Arrival

Delivery at

named place of

destination:

Frontier/

Terminal/Quay

Import

Documents

Formalities

Buyer/

Importer

Premises


Risks




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Seller delivers goods to the buyer, cleared for import,and not unloaded, at the named place of destination.

Seller bears all costs and risks, including importduty, to bring goods to the named place ofdestination.


If delivery is to take place at the port, quay or onboard a vessel, DES or DEQ should be used.

DDP DELIVERED DUTY PAID(named place of destination)



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DDPDelivered Duty Paid(named place of destination)

SELLER BUYER

Seller/

ExporterPremises

Export


Delivered

at namedplace of:

Frontier/

Terminal/

Quay

Loading

Port ofShipment

Onboard

ShipRail

Plane

Ships Ships

Rail Rail

Discharging

Port ofArrival

Delivery at


Frontier/

Terminal/Quay

Import


Buyer/

ImporterPremises


Risks




27/35

Seller delivers goods, cleared for export, at disposal of

buyer on arriving means of transport.

Not unloaded, not cleared for import at point at frontierbefore customs border of adjoining country.

Term may be used irrespective of the mode of transportwhen goods are delivered at a land frontier.

If delivery is to take place in the port of destination, DESor DEQ should be used.

DAF DELIVERED AT FRONTIER(named place)



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DAFDelivered At Frontier(named place)

SELLER BUYER

Seller/

ExporterPremises

Export


Delivered

at namedplace of:

Frontier/

Terminal/

Quay

Loading

Port ofShipment

Onboard

ShipRail

Plane

Ships Ships

Rail Rail

Discharging

Port ofArrival

Delivery at


Frontier/

Terminal/Quay

Import


Buyer/

ImporterPremises


Risks




29/35

Seller delivers goods at disposal of buyer on boardthe ship.

Not cleared for import at the named port ofdestination.

Seller bears all costs and risks to bring goods to thenamed port before discharging.

Term used only for delivery by sea. If the seller is to bear the costs of discharging the

goods, DEQ should be used.

DES DELIVERED EX SHIP(named port of destination)



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DESDelivered exShip(named port of destination)

SELLER BUYER

Seller/

ExporterPremises

Export


Delivered

at namedplace of:

Frontier/

Terminal/

Quay

Loading

Port ofShipment

Onboard

ShipRail

Plane

Ships Ships

Rail Rail

Discharging

Port ofArrival

Delivery at


Frontier/

Terminal/Quay

Import


Buyer/

ImporterPremises


Risks




31/35

Seller delivers goods, not cleared for import, atdisposal of buyer on the quay at the named port of

destination. Seller bears all costs and risks to bring goods to the

named port of destination and discharging the goodson the quay.

Term used only for delivery by sea.

DEQ DELIVERED EX QUAY(named port of destination)



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DEQDelivered Ex Quay(named port of destination)

SELLER BUYER

Seller/

ExporterPremises

Export


Delivered

at namedplace of:

Frontier/

Terminal/

Quay

Loading

Port ofShipment

Onboard

ShipRail

Plane

Ships Ships

Rail Rail

Discharging

Port ofArrival

Delivery at


Frontier/

Terminal/Quay

Import


Buyer/

ImporterPremises


Risks



INCOTERMS 2010


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31st March 2012 IMDR,Pune 33

There will now be a total of 11 terms instead of 13,

New additions (TWO) : DAP and DATDeletions (FOUR) : DAF, DDU, DEQ and DES

INCOTERMS 2010

EXW: Ex works

FCA : Free carrierCPT : Carriage Paid toCIP : Carriage andInsurance paid toDAT : Delivered AtTerminalDAP : Delivered At Place

DDP : Delivered Duty Paid

FAS : Free Alongside ShipFOB : Free On BoardCFR : Cost And FreightCIF : Cost, Insurance andFreight


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INCOTERMS 2010

EXW : Ex worksFCA : Free carrierCPT : Carriage Paid to

CIP : Carriage andInsurance paid toDAT : Delivered AtTerminalDAP : Delivered At PlaceDDP : Delivered Duty Paid

FAS : Free Alongside ShipFOB : Free On BoardCFR : Cost And FreightCIF : Cost, Insurance andFreight


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