INCOTERMS

Synopsis Prepared by-

Md. Abdul Bari Mollah
Senior Assistant Vice President & Manager Operation
Mohakhali Branch
Dhaka

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 Incoterms

Incoterms-simply means-International Commercial

Terms. These are also known as Contract Terms/Trade
Terms/Delivery Terms/Sales Terms/Purchase Terms
and named by International Chamber of Commerce-
ICC, Paris, France. First Incoterms were introduced in
1936.

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 Incoterms (Cont…)
• Incoterms relate only to the “Contract of
Sale”

Not The Method Not The Transfer

Not The Price Of Payment Of Ownership

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 INCOTERMS-2000
To cope with different situation in Trade Terms ICC then revised it in 2000.There are 13
(thirteen) INCOTERMS which are known as Incoterms-2000.

Catagories Group Terms Incoterms

The seller makes the goods available to the buyer at the EXW
Departure E seller’s own premises or named place and handover the same (Ex works----
from this premises/place named place)
The seller should handover the goods for carriage as instructed FCA,FAS,FOB
Main Carriage
F by the buyer. (-----named
Unpaid
place)
The sellers provide carriage only. But expected loss/damage of CFR,CIF,CPT,C
Main Carriage goods/additional cost if occurs after shipment is on buyer. IP
C
Paid (-----Named
place)
The seller has to bear all costs and risks needed to bring the DAF,DES,DEQ,
goods to the country of destination. DDU,DDP
Arrival D
(------named
place)

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 INCOTERMS-2010
(ICC Pub. 715E)
First Incoterms were introduced in 1936.To cope with
different situation in Trade Terms, ICC then revised it
in 2010 for 2000 & came into force 1 January, 2011.
There are 11(eleven) INCOTERMS which are known
as Incoterms-2010.The number of INCOTERMS rules
has been reduced from 13 to 11.

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INCOTERMS-2010(Cont…)
This has been achieved by substituting two new rules-DAT (Delivered at
Terminal) and DAP (Delivered at Place) upon INCOTERMS 2000
rules DAF, DES, DEQ & DDU.

Categories Group Terms Incoterms

The seller makes the goods available to
EXW
the buyer at the seller’s own premises or
Departure E (Exworks ----named
named place and handover the same
place)
from this premises/place
Main Carriage The seller should handover the goods FCA,FAS,FOB
F
Unpaid for carriage as instructed by the buyer. (-----named place)
The sellers provide carriage only. But
Main Carriage expected loss/damage of CFR,CIF,CPT,CIP
C
Paid goods/additional cost if occurs after (-----Named place)
shipment is on buyer.
The seller has to bear all costs and risks
DAT,DAP,DDP
Arrival D needed to bring the goods to the country
(------named place)
of destination.

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INCOTERMS-2010(cont…)
Under both new rules (DAT & DAP)
delivery occurs at a named destination.
In DAT at the buyer’s disposal unloaded
from the arriving vehicle (as under the
former DEQ rule-2000).
In DAP at the buyer’s disposal but
ready for unloading (as under the
former DAF, DES, & DDU rules-2000).

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Classification of the 11 Incoterms -
2010 rules

Presented in two distinct Classes:

Rules for any mode or Modes of

Transport.

Rules for Sea and Inland Waterway

Transport.

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Rules for any mode or Modes of
Transport.
EXW :EX WORKS
FCA :FREE CARRIER
CPT :CARRIAGE PAID TO
CIP :CARRIAGE INSURANCE PAID TO
DAT :DELIVERED AT TERMINAL
DAP :DELIVERED AT PLACE
DDP :DELIVERED DUTY PAID

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 Rules for Sea and Inland
Waterway Transport.
FAS- FREE ALONGSIDE SHIP

FOB- FREE ON BOARD

CFR- COST AND FREIGHT

CIF- COST INSURANCE AND FREIGHT

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Main Difference between DAT & DAP

DAT (Delivered At Terminal)

The Seller delivers the goods at the
named terminal once unloaded from the
means of transport used.
DAP (Delivered At Place)
The Seller delivers the goods at the
named place, ready to unload from the
means of transport used but without
unloading it.
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 Obligation
S. The Seller’s Obligation

B. The Buyer’s Obligation

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S. The Seller’s Obligation
S1:General obligations of the Seller

S2:Licences, Authorizations, Security

Clearance & Other formalities.

S3:Contracts of Carriage & Insurance

S4:Giving Delivery

S5:Transfer of Risks
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S. The Seller’s Obligation (Cont…)

S6: Allocation of Costs.

S7:Notices to the Buyer.

S8:Delivery document.

S9:Checking, Packaging & Marking.

S10:Assistance with Information & related

costs.
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 B. The Buyer’s Obligation

B1:General obligations of the Buyer

B2:Licenses, Authorizations, Security

Clearance & Other formalities.

B3:Contracts of Carriage & Insurance

B4:Taking Delivery

B5:Transfer of Risks
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B. The Buyer’s Obligation (Cont…)

B6: Allocation of Costs

B7: Notices to the Seller

B8: Proof of Delivery

B9: Inspection of goods

B10: Assistance with Information & related

costs.

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Thank You !

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