CBTM202 – Transportation 2B - Incoterms 2010
From slides in class:
• The international terms of sale are known as INCOTERMS.
• These INCOTERMS are internationally accepted rules defining trade terms.
• The INCOTERMS define responsibilities of both the buyer and seller in any international contract of sale.
• For exporting, the terms outline buyer or seller responsibility for the following:
Ø Export packing cost
Ø Inland transportation (to the port of export)
Ø Export clearance
Ø Vessel or plane loading
Ø Main transportation cost
Ø Cargo insurance
Ø Customs duties
Ø Risk of loss or damage in transit
From Wikipedia, the free encyclopedia
TheIncotermsrules orInternational Commercial termsare a series of pre-defined commercial terms published by theInternational Chamber of Commerce(ICC) widely used in international commercial transactions. A series of three-letter trade terms related to common sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods. The Incoterms rules are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade. They are intended to reduce or remove altogether uncertainties arising from different interpretation of the rules in different countries.
From http://www.kalgin.net.nz/incoterms.html
TheInternationalChamberofCommercehas 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:
1. 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
2. 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 reduction in Incoterms from 13 to 11 different terms was accomplished by substitutingtwo new Incoterms, DAT (Delivered at Terminal)andDAP (Delivered at Place), for DAF (Delivered at Frontier), DES (Delivered Ex-Ship), DEQ (Delivered Ex-Quay) and DDU (Delivered Duty Unpaid).
Incoterms 2010 also addresses duties to provide information regarding security-related clearances, such as Importer Security Filings and other chain-of-custody information.
Note:an Incoterm must be accompanied by a "named place" ex. "FOB Sydney", "EXW Tahiti"
Any Mode / Any Mode / Water mode / Water mode / Water mode / Water mode / Any Mode / Any Mode / Any Mode / Any Mode / Any ModeIncoterm / EXW / FCA / FAS / FOB / CFR / CIF / DAT / CPT / DAP / CIP / DDP
Loading on truck (carrier) / Buyer / Seller / Seller / Seller / Seller / Seller / Seller / Seller / Seller / Seller / Seller
Export-Customs declaration / Buyer / Seller / Seller / Seller / Seller / Seller / Seller / Seller / Seller / Seller / Seller
Carriage to port of export / Buyer / Seller / Seller / Seller / Seller / Seller / Seller / Seller / Seller / Seller / Seller
Unloading of truck in port of export / Buyer / Buyer / Seller / Seller / Seller / Seller / Seller / Seller / Seller / Seller / Seller
Loading charges in port of export / Buyer / Buyer / Buyer / Seller / Seller / Seller / Seller / Seller / Seller / Seller / Seller
Carriage to port of import / Buyer / Buyer / Buyer / Buyer / Seller / Seller / Seller / Seller / Seller / Seller / Seller
Unloading charges in port of import / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Seller / Seller / Seller / Seller / Seller
Loading on truck in port of import / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Seller / Seller / Seller / Seller
Carriage to place of destination / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Seller / Seller / Seller / Seller
Insurance / Buyer / Buyer / Buyer / Buyer / Buyer / Seller / Buyer / Buyer / Seller / Seller / Seller
Import customs clearance / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Seller
Import taxes / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Buyer / Seller