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Copy of INCOTERMS 2010
Transcript of Copy of INCOTERMS 2010
Thank You for Your Attention
Written for the first time in 1936 by the International Chamber of Commerce (ICC)
International Rules for the Interpretation of Trade Terms
Incoterms homogenize the vocabulary in trade and thus help avoid disputes between the seller and the buyer.
Depending on the choice of Incoterms, we can know who is doing what in the transport of goods, which pays for the transportation, which provides goods and from any geographic location.
Incoterms define with precision the obligations of the seller and the buyer in terms of benefits, risks and costs.
The International Chamber of Commerce has released the table of contents to the INCOTERMS 2010. Incoterms 2010 consists of only 11 Incoterms, a reduction from the 13 Incoterms 2000. The Incoterms 2010 are organized into two categories:
Incoterms for any Mode or Modes of Transport:
EXW - Ex Works
FCA - Free Carrier
CPT - Carriage Paid To
CIP - Carriage and Insurance Paid
DAT - Delivered At Terminal (new)
DAP - Delivered At Place (new)
DDP - Delivered Duty Paid
Incoterms for Sea and Inland Waterway Transport Only:
FAS - Free Alongside Ship
FOB - Free On Board
CFR - Cost and Freight
CIF - Cost, Insurance and Freight
The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. The seller's obligation is to make the goods available at his premises (works, factory, warehouse). This term represents minimum obligation for the seller. This term can be used across all modes of transport.
The seller hands over the goods, cleared for export, into the disposal of the first carrier (named by the buyer) at the named place. The buyer pays for carriage to the named point of delivery, and risk passes when the goods are handed over to the first carrier.
The seller pays for carriage. Risk transfers to buyer upon handing goods over to the first carrier at place of Import.
The containerized transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.
First published in 1936, the Incoterms rules have been periodically updated, with the eighth version—Incoterms 2010—having been published on January 1, 2011. "Incoterms" is a registered trademark of the ICC.
The Incoterms rules genesis can be traced to 1921, with the formation of the idea by the International Chamber of Commerce.
In 1936, the first set of the Incoterms rules was published. The first set remained in use for almost 20 years, before the second publication in 1953. Additional amendments and expansions followed in 1967, 1976, 1980, 1990, and 2000.
The 8th and current version of the Incoterms rules—INCOTERMS 2010—was published on January 1, 2011
Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal.
Seller pays for carriage to the named place, except for costs related to import clearance, and assumes all risks prior to the point that the goods are ready for unloading by the buyer.
Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. The buyer is responsible for unloading. This term is often used in place of the non-Incoterm "Free In Store (FIS)". This term places the maximum obligations on the seller and minimum obligations on the buyer.
The seller must place the goods alongside the ship at the named port. The seller must clear the goods for export. Suitable only for maritime transport but NOT for multimodal sea transport in containers (see Incoterms 2010, ICC publication 715). This term is typically used for heavy-lift or bulk cargo.
The seller must load the goods on board the vessel nominated by the buyer. Cost and risk are divided when the goods are actually on board of the vessel (this rule is new!). The seller must clear the goods for export. The term is applicable for maritime and inland waterway transport only but NOT for multimodal sea transport in containers (see Incoterms 2010, ICC publication 715). The buyer must instruct the seller the details of the vessel and the port where the goods are to be loaded, and there is no reference to, or provision for, the use of a carrier or forwarder. This term has been greatly misused over the last three decades ever since Incoterms 1980 explained that FCA should be used for container shipments.
Seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods are loaded on the vessel. Insurance for the goods is NOT included. This term is formerly known as CNF (C&F). Maritime transport only.
Exactly the same as CFR except that the seller must in addition procure and pay for the insurance. Maritime transport only.
Neyrolles Thibault, Rolland Thomas, Sahin Dilek, Tahir Danish, Roy Amélie, Simonet Estelle, Ratie Mathieu, Varlet Sylvano