Guide to INCOTERMS 1.docx

1、Guide to INCOTERMS 1EXW - Ex WorksThe seller fulfills the obligation to deliver when he has made the goods available at his premises (i.e., works, factory, warehouse, etc.) to the buyer. In particular, the seller is not responsible for loading the goods on the vehicle provided by the buyer or for cl

2、earing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the sellers premises to the desired destination. This term thus represents the minimum obligation for the seller. Term applies to air, rail, road, and containerized/multimodal

3、transport.FCA Free Carrier (named place)The seller clears the goods for export and hands them over into the custody of the first carrier (named by the buyer) at the named place. Term applies to air, rail, road, and containerized/multimodal transport.FAS Free Alongside Ship(named loading port)The sel

4、ler must place the goods alongside the ship at the named port. The seller must clear the goods for exporta change from the 2000 version of Incoterms. Term applies to maritime transport only.FOB Free On Board (named loading port)As a common trade term, the seller must load the goods on board the ship

5、 nominated by the buyer. Cost and risk transfer once goods are placed on board the ship for transportan Incoterms change as of 2000. The seller must clear the goods for export. Term applies to maritime transport only.CFR Cost and Freight(named destination port)The seller must pay the costs and freig

6、ht to bring the goods to the port of destination. However, the risk transfers to the buyer once the goods are placed on board the ship for transport. Term applies to maritime transport only.CIF Cost, Insurance and Freight(named destination port)The seller must pay the costs and freight to bring the

7、goods to the port of destination. However, the risk transfers to the buyer once the goods are placed on board the ship for transport. The shipper must also procure and pay for insurance for the buyer. Term applies to maritime transport only.CPT Carriage Paid To (named place of destination)The seller

8、 must pay for carriage of the freight to the named point of destination. Risk passes when the goods are handed over to the first carrier. Term applies to air, rail, road, and containerized/multimodal transport.Risk transfers to buyer when:Seller assumes all risks of loss or damage to the goods until

9、 they have been delivered to the (first) carrier at the place of shipment, within the agreed-upon time stipulated in the sales contract.CIP Carriage and Insurance Paid to(named place of destination)Seller pays for carriage and insurance to the named destination point, but risk passes when the goods

10、are handed over to the first carrier. Term applies to air, rail, road, and containerized/multimodal transport.Risk transfers to buyer when:Goods are handed over to the first carrier and the shipper has paid insurance for the buyer.DDP - Delivered Duty Paid(named destination place)The seller pays for

11、 all transportation costs and bears all risk until the goods have been delivered. Seller pays the duty. This term should NOT be used interchangeably with the term Free Domicile. Term applies to air, rail, road, and containerized/multimodal transport.Risk transfers to buyer when:Goods have been deliv

12、ered at the named destination place.DAP Delivered at PlaceThe seller bears all transport costs and the risk up to delivery. Delivery takes place when the goods are at the disposal of the buyer on the arriving means of transport, ready for unloading at the named place of destination. Term applies to

13、air, rail, road, and containerized/multimodal transport.Risk transfers to buyer when:Goods are placed at the disposal of the buyer, ready for unloading at the named destination.DAT Delivered at TerminalThe seller bears the cost of transport and the risks until the goods are left unloaded at the term

14、inal that the parties had agreed upon. Terminal includes any place, whether covered or not, such as a quay, warehouse, container yard or road, or rail or air cargo terminal. Term applies to air, rail, road, and containerized/multimodal transport.Risk transfers to buyer when:Goods are left at the agr

15、eed-upon terminal.Guide to INCOTERMS 20101NOTE: For INCOTERMS 2000, please click here.Select from the following list to navigate through the Guide to INCOTERMS 2010. While the terms of sale in international business sound similar to those used in domestic contracts, they often have different meaning

16、s. Confusion over these terms can result in diminished profits or lost sales. IncotermsBy the 1920s, international traders had developed a set of trade terms to describe their rights and obligations with regard to the sale and transport of goods. These terms consisted of short abbreviations for leng

17、thy contract provisions. Unfortunately, there was no uniform interpretation of these terms. To improve this aspect of international trade, the International Chamber of Commerce (ICC) in Paris developed Incoterms (INternational COmmercial TERMS), a set of uniform rules for the interpretation of terms

18、 defining the costs, risks, and obligations of buyers and sellers in international transactions. First published in 1936, these rules have been periodically revised to account for changing modes of transport, document delivery, and security. Incoterms 2010In late 2010 the ICC issued its latest revis

19、ion, Incoterms 2010. Please note:1. The new rules enter into force on January 1, 2011. 2. Contracts are interpreted by the version of Incoterms referred to in the contract. Therefore, only a contract that refers to Incoterms 2010 will be governed by rules from that version. Incoterms 2010 vs. Incote

20、rms 2000Incoterms 2010 rules incorporate a number of changes from Incoterms 2000. Here are some key items:1. Incoterms 2000 had 13 rules whereas Incoterms 2010 has 11 rules. For Incoterms 2010, four of the D rules: DAF, DES, DEQ, and DDU were dropped, and two new D rules were created: DAT and DAP 2.

21、 In Incoterms 2000, a number of rules, such as FOB, established that the seller delivers the goods when they pass the ships rail. In Incoterms 2010 these rules require that the goods be delivered on board the vessel. 3. Incoterms 2000 established four groups of rules: E: Departure, F: Main Carriage

22、Unpaid, C: Main Carriage Paid, and D: Arrival. Incoterms 2010, however, establishes two classes: 1) rules applicable for all modes of transport, and 2) rules applicable only for sea and inland waterway transport. See the next page for details. 4. Incoterms 2010 gives electronic communications the sa

23、me status as paper communication so long as the parties agree. 5. Incoterms 2010 rules obligate both seller and buyer to give assistance in securing security clearances. 6. Incoterms 2010 now acknowledges the existence of string sales, where goods in transit may be sold multiple times before arrival

24、, by giving the seller the option to procure goods shipped. Use of IncotermsIncoterms are not laws enacted by governments. Rather, they are rules agreed to by parties to a contract. Also, Incoterms are not implied into contracts for the sale of goods. If you desire to use Incoterms, you must specifi

25、cally include them in your contract. Your contract should expressly refer to a specific version of Incoterms. For example: CIF Oakland, California, USA, Incoterms 2010Incoterms Do . . .Incoterms 2010 may be included in a sales contract if the parties desire the following:1. To complete a sale of goo

26、ds. 2. To indicate each contracting partys costs, risks, and obligations concerning these aspects of delivery: a. When is the delivery completed? b. How does a party ensure that the other party has met the standard of performance? c. Which party must obtain requisite licenses and comply with governm

27、ent-imposed import/export formalities? d. What are the modes and terms of carriage? e. What are the delivery terms? f. When is the risk of loss transferred from the seller to the buyer? g. How will transport and other costs be divided between the parties? h. What notices are the parties required to

28、give to each other regarding the transport and transfer of the goods? 3. To establish basic terms of transport and delivery in a short format. Incoterms Do Not . . .Incoterms 2010 are not sufficient on their own to express the full intent of the parties. They do not:1. Apply to con tracts for servic

29、es. 2. Define contractual rights and obligations other than for delivery. 3. Specify details of the transfer, transport, and delivery of the goods. 4. Determine how title to the goods will be transferred. 5. Protect a party from risk of loss. 6. Define the remedies for breach of contract. Illustrate

30、d Guide to Incoterms 2010The World Trade Press Illustrated Guide to Incoterms 2010 was designed to give a graphic representation of the buyers and sellers risks and costs under each of the 11 Incoterms. The material on each facing page gives a summary of seller and buyer responsibilities.Back to top

31、Incoterms GroupsIn the past, Incoterms were arranged into four groups: E (Departure), F (Main carriage unpaid), C (Main carriage paid), and D (Arrival). Traders, however, were mistakenly picking ocean transport terms (like FOB) for shipments by air. Incoterms 2010 classifies terms by mode of transpo

32、rt, but the four original groupings remain valid:Incoterms 2010 GroupsGroup EDepartureEXWEX Works(.named place of delivery)Group F MainCarriage UnpaidFCAFree CArrier (.named place of delivery)FASFree Alongside Ship(.named port of shipment)FOBFree On Board(.named port of shipment)Group CMainCarriage PaidCFRCost and FReight(.named port of destination)CIFCost Insurance and Freight(.named port