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Incoterm 2010 Made Easy e Guide
Incoterm 2010 Made Easy e Guide
to
INCOTERMS
2010
Published by
Import Export Made Easy
Version 1 February 2011
XDOC and Key Directions, authors of 2011 Made Easy e-Guide to Incoterms 2010 Rules
What you will find in the Made Easy e-Guide.
This77pageeGuidetothe2010versionofIncotermsisanessentialcompaniontothecoreICC
publication,Incoterms2010Rules,whichliststherulesbutdoesnotexplaintheimplicationsfor
partiesinvolvedintheshipmentofgoods.
ThisiswheretheMadeEasyeGuidefillsthegap,providingcriticalexplanationforallwhoneedto
useorunderstandtherulestraders,export/importandlogisticsmanagers,freightforwarders,
shippingcompanies,lawyersandbankers.
Writtenbytwointernationaltradeexpertsandpractitioners(CorinneCampbellofXDOCandLance
ScoularofKeyDirections),theMadeEasyeGuidecovers:
Descriptionoftheterms
Rulesgoverninguseofthetermsandwhattheycover
BuyerandSellerResponsibilities
RulesforInternationalandDomesticcontractsofsale
Howtousetherulescorrectly
Howtochoosetherightruleforyourcontractofsale
Risksassociatedwitheachterm
Guide format:
Theformatofthisguidehasbeendesignedforeaseofuse.Eachofthe11Incotermsrulesis
individuallyexplainedineasytofollowsections:
Definition
ResponsibilitiesofSellerandBuyer
Checklistofobligations
Casestudies/practicalscenarios
Charts
Remarks:
Theguidehasalistofremarksdividedinto5categoriesforeachspecificIncotermsrule.Thisis
designedtohelpyoutodecideontheIncotermsrulebestsuitedtoyourrequirements.
Positives Whatarethebestpractices
Concerns Whenusageisnotrecommended
Considerations Whattoconsider
Negotiables Whattoincludeinyournegotiationsandcontracts
Insurance Whattoconsiderwheninsuringyourshipmentbeforeandduringtransit
XDOC and Key Directions, authors of 2011 Made Easy e-Guide to Incoterms 2010 Rules
Incoterms
Supplygoodsanddocumentsasagreed
Packandmarkasagreedandrequired
Selectwheregoodsareavailableforcollection
Makegoodsavailableatagreedplaceanddate
Givetimelynoticeofgoodsavailability
ProvideBuyerinformationonexportdocumentation
ProvideBuyerinformationonexportprocedures/documents
RESPONSIBILITY
OFBUYER
AdviseSellerwhengoodswillbecollected
CollectgoodswhenplacedatdisposalbySeller
Loadgoods
Provideevidenceofhavingpickedupthegoods
Arrangealltransporttofinaldestination
Clearforexport(ifneeded)
Clearforimport(ifneeded)
RISKS
TransfersfromSellertoBuyerwhengoodshavebeenmadeavailableat
agreedplaceanddate
Checklist:
Achecklistisincludedforeachofthe11Incoterms2010rulesandprovidesavaluableandsuccinct
methodofcheckingthatyouhaveaccountedforeverything.
Example:
Obligations Seller Buyer
ProvideCommercialDocuments
ExportLicenses,Authorizations,SecurityClearances&otherformalities
AssistanceinExport
ContractofPremaincarriageinSellersCountry
ContractofMainCarriageinSellersCountry
LoadinggoodsatTerminal/Place
Loadingcost
ContractofInsuranceObligation
Provideinformationtoobtaininsurance
PremainTransportrisk
MainTransportrisk
UnloadingatTerminal/PlaceatSellerscountry
ExportDuties,TaxesandCustomsformalitycosts
ImportLicenses,Authorizations,SecurityClearances&otherformalities
AssistanceinImport
ContractofCarriageinBuyersCountry
Unloadinggoodsatagreedplace
XDOC and Key Directions, authors of 2011 Made Easy e-Guide to Incoterms 2010 Rules
Remarks:
Atableofcommentsisincludedforeachofthe11Incoterms2010rules.Thisoutlinesthebest
circumstancesforapplyingtherule,alertstheusertoanynegativeaspectsoftheparticularrule,
identifiesparticularareasforconsiderationwhendecidingwhichruletouseandwhattoincludein
thecontract,andincludesremarksaboutinsurancerequirements.
Example:
TobeusedinsteadofCFRwhenusingcontainers
Sellerpaysmaincarriagetodestinationbutdoesntcarrythe
transportrisk
Underaletterofcredit,Sellerminimisesriskbyhavingcontrolof
shippingdateandshippingdocuments
BuyerhasmaincarriageriskwhilefreightiscontrolledbySeller
BuyershouldassessifSellersfreightratemarginisexcessive
IfSellerhasadequatemarineinsurancecover,considerusingCIP
SpecifyplacewhereSellerdeliverstocarrier(countryofSeller)
Specifyprecisefinalnamedplaceofdestination
Agreeonwhichparty,ifany,arrangesmarineinsurance
Bothpartieshaveanobligationtoprovideinformationtoenable
otherpartytoarrangemarineinsurance
Considercoveringpreandpostshipmentrisk
XDOC and Key Directions, authors of 2011 Made Easy e-Guide to Incoterms 2010 Rules
Case Studies: Atleasttwopracticalscenariosareincludedforeachrule.
Example:
Scenario:GermanengineeringcompanysellsaLCLcontainershipmentof12boxesspareparts
12M3measurementtoaminingcompanyinJohannesburg,SouthAfrica.
TermsofSale:CPTJohannesburg,SouthAfrica:DeliverytoContainerPackingDepot,16Landenberg
Strasse,Hamburg,Germany.Finaldestination:JohannesburgContainerUnpackingDepot,15Protea
Place,Johannesburg,SouthAfrica.
ModeofTransportForMainCarriage:Sea(containervessel)
TypeofTrade:International
InsuranceObligations:NilforBuyerandSeller.Ifagreed,specifyincontractofsalewhichparty
insuresthegoods.
ExportCountryObligationsincludingDutiesandTaxes:Seller
ImportCountryObligationsincludingDutiesandTaxes:Buyer
SellersRisk:UptodeliverytoLCLpackingdepotinSellerscountry.
SellersCosts:CostofdeliverytocontainerpackingdepotinSellersCountry,packinggoodsinto
consolidationcontainer,loadingontovesselandallsubsequentcoststoBuyersunpackingdepot.
BuyersRisk:FromreceiptatLCLpackingdepotinSellerscountry.
BuyersCosts:AllcostsfromLCLunpackingdepotinBuyerscountry(includingcontainerunpacking
charges)andallsubsequentcoststoBuyerspremises.
Charts: Graphicsareincludedtoillustrateeachscenario.Sellerresponsiblitiescorrelatedwith
costsaredepictedinblue;Buyerresponsibilitiescorrelatedwithcostsareinorange.
Example:
XDOC and Key Directions, authors of 2011 Made Easy e-Guide to Incoterms 2010 Rules
XDOC and Key Directions, authors of 2011 Made Easy e-Guide to Incoterms 2010 Rules
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Incoterms2010bytheInternationalChamberofCommerce(ICC)andanyofitsvariantsare
trademarksorregisteredvariantsoftheInternationalChamberofCommerce(ICC).
Thispublication,ourcomments,opinionsorothercontent,arenotsponsored,affiliatedortestedby
theICC;werecommendyourefertotheICCofficialpublicationofIncoterms2010ICCrules715.
TheInternationalChamberofCommerce,theworldbusinessorganisationbasedinParis,isthe
globalleaderinthedevelopmentofstandards,rulesandreferenceguidesforinternationaltrade.
ICCPublicationsavailableatICCBusinessBookstorewww.iccbooks.com