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Incoterms Sankalp
Incoterms Sankalp
Incoterms Sankalp
Define the responsibilities of buyers and sellers for the domestic and
international delivery of goods and determine how costs and risks are allocated. Accepted by governments, legal authorities and practitioners worldwide
Incoterms 2010
11 new Incoterms went into effect on January 01, 2011
RULES FOR ANY MODE OR MODES OF TRANSPORT EXW Ex Works (named place of delivery) FCA Free Carrier (named place of delivery) CPT Carriage Paid To (named place of destination) CIP Carriage And Insurance Paid To (named place of destination) DAT Delivered At Terminal (named terminal at port or place of destination) DAP Delivered At Place (named place of destination) DDP Delivered Duty Paid (named place of destination)
RULES FOR SEA AND INLAND WATERWAY TRANSPORT FAS Free Alongside Ship (named port of shipment) FOB Free On Board (named port of shipment) CFR Cost And Freight (named port of destination) CIF Cost, Insurance and Freight (named port of destination)
Definitions-Simplified
EXW Ex Works (named place of delivery)
The seller makes the goods available at his/her premises (works, factory or warehouse). For eg: EXW Street Address, City, Country. The buyer is responsible for uploading. EXW places the maximum obligation on the buyer and minimum obligations on the seller. The buyer, arranges the pick up of the freight from the supplier's designated ship site, owns the in-transit freight, and is responsible for clearing the goods through Customs.
Definitions-Simplified
FCA Free Carrier (named place of delivery)
Seller delivers the goods to the forwarder (carrier). For eg: FCA Street address of Forwarder, City, Country. Seller is required to clear the goods for export. Delivery is said to have taken place when the seller places the goods at the named place. Preferred for Goods in Container
Definitions-Simplified
FOB Free On Board (named port of shipment)
The Seller hands over a loaded, ready-to-ship container to the carrier at a terminal (named place) before being loaded onto the vessel.
Definitions-Simplified
CIF Cost, Insurance and Freight (named port of destination)
The Seller delivers the goods on board a vessel and pays the costs and freight necessary to bring the goods to the named port of destination as well as covers insurance for risk of loss of or damage to the goods during carriage. For example: CIF Port name. The point of delivery here is when the goods are on board the vessel at the shipment port. The Sellers obligation for loss or damage to the goods is to this point and not up to the port of destination.
Definitions-Simplified
DAT Delivered At Terminal (named terminal at port or place of destination)
Seller delivers the goods after unloading from the arriving vessel and places them at the disposal of the Buyer at a named terminal at a port of destination. For eg: Port name, Terminal number. Terminal could also mean a port warehouse, container yard, rail station or air cargo terminal. Seller bears all risks and costs involved up to unloading the goods at the named terminal.
Definitions-Simplified
DAP Delivered At Place (named place of destination)
Delivery takes place at a named destination and when the goods have been placed at the disposal of the Buyer but have not yet been unloaded from the arriving vehicle. For example DAP City name. Risks and costs up to the named address and prior to the time the goods are unloaded are the Sellers responsibility.
Definitions-Simplified
CIP Carriage And Insurance Paid To (named place of destination)
CIP can be considered similar to CPT with insurance cover added.
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