Инкотермс

INCOTERMS 2010

INCOTERMS (International Commercial Terms) are rules about the delivery conditions for goods. They are used to divide the costs of international business transactions and define the responsibilities of both the buyer and seller, while reflecting the current practices in the international transport of goods.

 

 

INCOTERMS are a set of international rules that are overseen by the International Chamber of Commerce, which determines the extent of the commerce clauses included in international sales contracts.

 

 

INCOTERMS are also called “price clauses”, since each INCOTERM determines the cost elements of a goods transfer. The choice of INCOTERM affects the cost of a contract.

 

 

The purpose of INCOTERMS is to provide a set of international rules for the interpretation of the terms used in international trade.

 

 

INCOTERMS determine:

 

 

- The scope of the price

- At what time and where the risk for the goods transfers from the seller to the buyer

- The place of delivery of the goods

- Who hires and pays the transport

- Who hires and pays the insurance

- Which documents confirm each phase, and their cost

 

Two categories of INCOTERMS 2010 have been established:

 

 

- INCOTERMS "multimodal": Any mode of transport (EXW, FCA, CPT, CIP, DAP, DAT and DDP)

- INCOTERMS "maritime only": Inland waterway and sea transport only (FAS, FOB, CFR and CIF)

 

 

The new regulations clearly state that INCOTERMS must always be applied to sales of containerized multimodal goods.

 

 

In the detailed wording of each INCOTERM, all are initially treated as multimodal, then “maritime only” aspects are considered.

 

 

Four INCOTERMS 2000 are no longer in use:

 

 

- DDU (Delivered Duty Unpaid)

- DAF (Delivered At Frontier)

- DES (Delivered Ex Ship)

- DEQ (Delivered Ex Quay).

 

 

It was determined that three of the four eliminated INCOTERMS (DAF, DES and DEQ) were seldom used.

 

 

The new regulations of 2010 create two new INCOTERMS:

 

 

- DAT (Delivered At Terminal)

- DAP (Delivered At Place)

 

 

DAT is used for all types of transport, although it represents a special type of INCOTERM when used in maritime shipping. On the other hand, like the superseded DEQ, the DAT (at sea) implies delivery of the goods on the quay of the port of destination, after the discharge of the vessel.

 

 

DAP has characteristics of the DAF & DDU that are no longer in use, by specifying that the goods are to be delivered at some point in the country of destination and are deliverable by all modes of transport. However, the DAP eliminates the restrictive term "frontier" (i.e., border), making it a much more flexible INCOTERM that the superseded DAF

 

INCOTERM EXW - Ex Works – FACTORY

This INCOTERM applies to transactions in which the seller (exporter) has complied with the responsibility to deliver the goods while they are still in his establishment (e.g., factory, workshop, warehouse, etc.) The goods are made available to the buyer (importer) but have not been cleared for export or loaded on the vehicle provided by the buyer.

 

 

The buyer (importer) must bear all costs and risks of taking the goods from the address of the seller (exporter) to the desired destination.

 

 

This INCOTERM is the only one in which customs export procedures are paid by the buyer (importer). That is, the buyer not only makes a purchase in the country of origin for the goods but also takes responsibility for documentation procedures necessary for export. This INCOTERM represents the minimum obligation for the seller.

 

 

The liability of the seller (exporter) is reduced to providing properly packaged and wrapped goods, such that the delivery of the goods can take place and the costs and risks transfer to the buyer (importer).

 

 

This term should not be used when the buyer cannot directly or indirectly carry out the export procedures. In such circumstances, the FCA term should be used.

INCOTERM FCA - Free Carrier (named place)

This INCOTERM means that the seller fulfills his obligation to deliver the goods when they are made available to the main carrier hired by the buyer at the agreed point. The seller is responsible for export clearance of the goods.

 

 

If delivery occurs at the seller's premises, the seller is responsible for loading the goods on the vehicle for the buyer and at that point transfers the costs and risks of shipment.

 

 

If delivery is considered to occur elsewhere, the seller is not responsible for unloading.

 

 

This term can be used in any mode of transport including multimodal transport.

INCOTERM FAS - Free Alongside Ship - FREE ALONGSIDE SHIP (Free Alongside Ship) (port of shipment)

The seller bears the transport costs and risks until the goods are placed alongside the vessel at the port of shipment. Therefore, if a problem occurs during loading, the buyer must take responsibility.

 

 

The seller is responsible for clearing customs for export. If the parties have agreed that the buyer is to perform this procedure, this should be specified in the sales contract.

 

 

This term can only be used for sea or inland waterway transport. The buyer names the place of export.

INCOTERM FOB - Free on Board (port of shipment)

The seller fulfills its responsibility to deliver the goods once they clear the ship's rail at the port of shipment. The seller does not pay for shipment.

 

 

The seller is obligated to ensure the goods are cleared by customs for export.

 

 

This term can only be used for transportation by sea or inland waterways.

 

NCOTERM CFR - Cost and Freight (named port of destination)

The seller fulfills his obligation when the goods pass the ship's rail at the shipping port. The seller is responsible for all costs of export, customs clearance, freight and costs required to bring the goods to the port of destination, not including insurance. Costs of unloading at the destination port are borne by the buyer.

 

 

This term can only be used for transportation by sea or inland waterways.

INCOTERM CIF - Cost, Insurance and Freight (named port of destination)

The seller fulfills his obligation when the goods pass the ship's rail at the shipping port. The seller must pay all costs of freight, insurance, export customs clearance and all necessary costs to bring the goods to the port of destination.

 

 

The seller is required to obtain minimum insurance coverage only to the destination port for the value of the goods.

 

 

The buyer assumes the risk at the time the goods are transferred on board the ship, despite the fact that they are covered by an insurance policy. This policy benefits the seller who, in case of lost or damaged merchandise, makes a claim directly to the insurance company.

 

 

This term can only be used for sea or inland waterway transport.

INCOTERM CIP - Carriage and Insurance Paid to (named place of destination)

The seller pays the costs of freight transportation required to carry the goods to the place agreed with the buyer. Additionally, the seller secures and pays for insurance (i.e., a policy with minimum coverage) against the risk that the purchaser may have for loss or damage of goods.

 

 

If the buyer wants more coverage, this must be arranged with the seller, or a separate insurance policy must be purchased by the buyer.

 

 

This INCOTERM can be used in any mode of transport, including multimodal transport, with the risk passing from seller to buyer when delivered to the first carrier.

NCOTERM CPT - Carriage Paid To (named place of destination)

The seller pays the costs of freight transport required to carry the goods to the place agreed with the buyer, including shipping and export permits, but not insurance costs.

 

 

This INCOTERM can be used in any mode of transport, including multimodal transport, with the risk passing from seller to buyer when delivered to the first carrier.

INCOTERM DAF - Delivery at Frontier - (named place)

The seller delivers to the agreed place at the border, but liability ends before the delivery is cleared at customs and the goods are available to the buyer in the means of transport. It is the buyer’s responsibility to unload them. The term "border" could imply that of the exporting country, therefore this term must be specified.

 

 

This INCOTERM can also be used for any mode of transport when the border is on land. If the delivery is in a port, dock or aboard ship, the INCOTERMs that should be used are DES or DEQ.

INCOTERM DDP - Delivery Duty Paid (... named place of destination)

The seller delivers the goods to the buyer, cleared for export and import payments of all costs but without unloading from the means of transport at the place of destination in the importing country.

 

 

Additionally, the seller must cover all costs including taxes and risks for delivery to the importing country. This term is used for any mode of transport.

INCOTERM DDU - Delivery Duty Unpaid - Delivered Duty Unpaid (... named place of destination)

The seller fulfills his obligation when he delivers the goods at the place of destination, but he does not pay for customs charges and the unloading of the goods.

 

 

The seller bears the costs and risks of bringing the goods to the place of destination. The buyer is responsible for import duties and the risks and costs for delays in the delivery. If the buyer wants these risks and costs covered by the seller, this must be specified in the contract.

 

 

This term can be used in any mode of transport.

INCOTERM DEQ - Delivery Ex Quay - Delivered Ex Quay (... named port of destination)

The shipment is considered delivered by the seller when the goods are placed on the dock of the port of destination and are made available to the buyer, but before they are cleared for import at customs.

 

 

This term can be used in maritime, inland waterway and multimodal where the last mode of transport by water.

INCOTERM DES - Delivery Ex Ship - Delivered Ex Ship (... named port of destination)

The seller is considered to have delivered the goods when they are on board the vessel at the port of destination and available to the buyer, but before they are cleared for import at customs. The buyer assumes the costs and risks of unloading the product.

 

 

This term can be used in maritime, inland waterway or multimodal where the last mode of transport is by water.

Incoterms

From Wikipedia, the free encyclopedia

The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) that are widely used in International commercial transactions or procurement processes. A series of three-letter trade terms related to common contractual 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. As such they are regularly incorporated into sales contracts[1] worldwide.

First published in 1936, the Incoterms rules have been periodically updated, with the eighth version— Incoterms® 2010 [2]'—having been published on January 1, 2011. "Incoterms" is a registered trademark of the ICC.

 

Incoterms 2010[edit]

Incoterms 2010 is the eighth set of pre-defined international contract terms published by the International Chamber of Commerce, with the first set having been published in 1936.Incoterms 2010 defines 11 rules, down from the 13 rules defined by Incoterms 2000.[3] Four rules of the 2000 version ("Delivered at Frontier", DAF; "Delivered Ex Ship", DES; "Delivered Ex Quay", DEQ; "Delivered Duty Unpaid", DDU).[4] are replaced by two new rules ("Delivered at Terminal", DAT; "Delivered at Place", DAP) in the 2010 rules.

In the prior version, the rules were divided into four categories, but the 11 pre-defined terms of Incoterms 2010 are subdivided into two categories based only on method of delivery. The larger group of seven rules may be used regardless of the method of transport, with the smaller group of four being applicable only to sales that solely involve transportation by water where the condition of the goods can be verified at the point of loading on board ship. They are therefore not to be used for containerized freight.

EXW – Ex Works (named place)[edit]

The seller makes the goods available at his/her premises. This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included. EXW means that a buyer incurs the risks for bringing the goods to their final destination. The seller does not load the goods on collecting vehicles and does not clear them for export. If the seller does load the goods, he does so at buyer's risk and cost. If parties wish seller to be responsible for the loading of the goods on departure and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale.

The buyer arranges the pickup of the freight from the supplier's designated ship site, owns the in-transit freight, and is responsible for clearing the goods through Customs. The buyer is also responsible for completing all the export documentation.

These documentary requirements may cause two principal issues. Firstly, the stipulation for the buyer to complete the export declaration can be an issue in certain jurisdictions (not least the European Union) where the customs regulations require the declarant to be either an individual or corporation resident within the jurisdiction. Secondly, most jurisdictions require companies to provide proof of export for tax purposes. In an Ex-Works shipment the buyer is under no obligation to provide such proof, or indeed to even export the goods. It is therefore of utmost importance that these matters are discussed with the buyer before the contract is agreed. It may well be that another Incoterm, such as FCA seller's premises, may be more suitable.

FCA - Free Carrier (named place of delivery)[edit]

The seller delivers the goods, cleared for export, at a named place. This can be to a carrier nominated by the buyer, or to another person nominated by the buyer.

It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller's premises, the seller is responsible for loading the goods on to the buyer's carrier. However, If delivery occurs at any other place, the seller is deemed to have delivered the goods once their transport has arrived at the named place; the buyer is responsible for both unloading the goods and loading them on to their own carrier.

CPT – Carriage Paid To (named place of destination)[edit]

CPT replaces the venerable C&F (cost and freight) and CFR terms for all shipping modes outside of non-containerised seafreight.

The seller pays for the carriage of the goods up to the named place of destination. Risk transfers to buyer upon handing goods over to the first carrier at the place of shipment in the country of Export. The Shipper is responsible for origin costs including export clearance and freight costs for carriage to named place (usually a destination port or airport). The shipper is not responsible for delivery to the final destination (generally the buyer's facilities), or for buying insurance. If the buyer does require the seller to obtain insurance, the Incoterm CIP should be considered.

CIP – Carriage and Insurance Paid to (named place of destination)[edit]

This term is broadly similar to the above CPT term, with the exception that the seller is required to obtain insurance for the goods while in transit. CIP requires the seller to insure the goods for 110% of their value under at least the minimum cover of the Institute Cargo Clauses of the Institute of London Underwriters (which would be Institute Cargo Clauses (C)), or any similar set of clauses. The policy should be in the same currency as the contract.

CIP can be used for all modes of transport, whereas the equivalent term CIF can only be used for non-containerized seafreight.

DAT – Delivered at Terminal (named terminal at port or place of destination)[edit]

This term means that the seller covers all the costs of transport (export fees, carriage, unloading from main carrier at destination port and destination port charges) and assumes all risk until destination port or terminal. The terminal can be a Port, Airport, or inland freight interchange. Import duty/taxes/customs costs are to be borne by Buyer.

DAP – Delivered at Place (named place of destination)[edit]

Can be used for any transport mode, or where there is more than one transport mode. The seller is responsible for arranging carriage and for delivering the goods, ready for unloading from the arriving conveyance, at the named place. Duties are not paid by the seller under this term (an important difference from Delivered At Terminal DAT, where the buyer is responsible for unloading).

DDP – Delivered Duty Paid (named place of destination)[edit]

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 seller is not 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. With the delivery at the named place of destination all the risks and responsibilities are transferred to the buyer and it is considered that the seller has completed his obligations [5]

Sea and Inland Waterway Transport[edit]

To determine if a location qualifies for these four rules, please refer to 'United Nations Code for Trade and Transport Locations (UN/LOCODE)'. [6]

The four rules defined by Incoterms 2010 for international trade where transportation is entirely conducted by water are as per the below. It is important to note that these terms are generally not suitable for shipments in shipping containers; the point at which risk and responsibility for the goods passes is when the goods are loaded on board the ship, and if the goods are sealed into a shipping container it is impossible to verify the condition of the goods at this point.

Also of note is that the point at which risk passes under these terms has shifted from previous editions of Incoterms, where the risk passed at the ship's rail.

FAS – Free Alongside Ship (named port of shipment)[edit]

The seller delivers when the goods are placed alongside the buyer's vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the seller to clear the goods for export, which is a reversal from previous Incoterms versions that required the buyer to arrange for export clearance. However, if the parties wish the buyer to clear the goods for export, this should be made clear by adding explicit wording to this effect in the contract of sale. This term can be used only for sea or inland waterway transport.[7]

FOB – Free on Board (named port of shipment)[edit]

See also: FOB (Shipping)

The seller must advance government tax in the country of origin as of commitment to load the goods on board a vessel designated by the buyer. Cost and risk are divided when the goods are sea transport in containers (see Incoterms 2010, ICC publication 715). The seller must instruct the buyer 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.

It means the seller pays for transportation of goods to the port of shipment, loading cost. The buyer pays cost of marine freight transportation, insurance, unloading and transportation cost from the arrival port to destination. The passing of risk occurs when the goods are in buyer account. The buyer arranges for the vessel and the shipper has to load the goods and the named vessel at the named port of shipment with the dates stipulated in the contract of sale as informed by the buyer.

CFR – Cost and Freight (named port of destination)[edit]

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.

CIF – Cost, Insurance and Freight (named port of destination)[edit]

Exactly the same as CFR except that the seller must in addition procure and pay for the insurance.

Allocations of costs to buyer/seller according to Incoterms 2010[edit]

Incoterm 2010	Export customs declaration	Carriage to port of export	Unloading of truck in port of export	Loading on vessel in port of export	Carriage (Sea/Air) to port of import	Insurance	Unloading in port of import	Loading on truck in port of import	Carriage to place of destination	Import customs clearance	Import taxes
EXW	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer
FCA	Seller	Seller	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer
FAS	Seller	Seller	Seller	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer
FOB	Seller	Seller	Seller	Seller	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer
CPT	Seller	Seller	Seller	Seller	Seller	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer
CFR(CNF)	Seller	Seller	Seller	Seller	Seller	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer
CIF	Seller	Seller	Seller	Seller	Seller	Seller	Buyer	Buyer	Buyer	Buyer	Buyer
CIP	Seller	Seller	Seller	Seller	Seller	Seller	Buyer/Seller	Buyer/Seller	Buyer	Buyer	Buyer
DAT	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Buyer	Buyer	Buyer	Buyer
DAP	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Buyer	Buyer
DDP	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller/Not including VAT/FAT