Incoterms(r) 2010 will begin January 1, 2011, but you don't have to use them on that date. Four (4) terms were deleted and two (2) new terms were created. The terms aren't law; no laws that require their use and are not all inclusive.
Incoterms(r) 2010 will begin January 1, 2011, but you don't have to use them on that date. Four (4) terms were deleted and two (2) new terms were created. The terms aren't law; no laws that require their use and are not all inclusive.
Incoterms(r) 2010 will begin January 1, 2011, but you don't have to use them on that date. Four (4) terms were deleted and two (2) new terms were created. The terms aren't law; no laws that require their use and are not all inclusive.
WHAT ARE INCOTERMS 2010? Eleven (11) Incoterms 2010 (used to be 13 terms) Four (4) terms were deleted and two (2) new terms were created Incoterms 2010 will begin January 1, 2011, but you dont have to use them on that date Available worldwide through 100 International Chamber of Commerce National Committees The terms arent law; no laws that require their use and are not all inclusive Country neutral they dont favor one country over another Self-contained all information that determines responsibility and risk are in one place
PRACTICAL IMPACT OF CHANGE New terms were effective January 1, 2011 Old terms may apply to previously issued contracts Make any necessary changes to standard contract language and forms Inform colleagues CHANGESTHE BASICS Two Categories of Terms Rules for any mode(s) of transportation Rules for sea and inland waterway Removal of 4 terms DAF, DES, DEQ, and DDU Inclusion of 2 new terms DAP and DAT CHANGESTHE BASICS Documentation requirements can be met with equivalent electronic records Provides for security-related requirements Specifically addresses responsibility for terminal handling charges Allows for sellers in-transit sales to procure goods shipped CHANGESTHE TERMS Simplification Four categories reduced to two 13 terms consolidated to 11 TRANSPORTATION DEFINITIONS Pre-carriage: inland transportation on the sellers side Domestic: from the place where the shipment starts to any subsequent transportation carriage International: from the place where the shipment starts to the departure point on the sellers side
Main Carriage: Domestic: subsequent transportation beyond pre-carriage International: transportation from the point of departure on the sellers side to the arrival pint on the buyers side
On-carriage: Domestic: subsequent transportation beyond main carriage International: transportation from the arrival pint on the buyers side INCOTERMS 2000 THAT WAS THEN EXW Ex Works FCA Free Carrier FAS Free Alongside Ship FOB Free On Board CRF Cost And Freight CIF Cost, Insurance and Freight CPT Carriage Paid To CIP Carriage and Insurance Paid To DAF Delivered at Frontier DES Delivered EX Ship DEQ Delivered EX Quay DDU Delivered Duty Unpaid DDP Delivered Duty Paid REMOVED FOUR AND ADDED TWO
REMOVED
DAF Delivered at Frontier DES Delivered EX Ship DEQ Delivered EX Quay
DDU Delivered Duty Unpaid
ADDED DAT Delivered at Terminal DAP Delivered at Place
INCOTERMS 2010 THIS IS NOW EXW Ex Works FCA Free Carrier FAS Free Alongside Ship FOB Free On Board CFR Cost and Freight CIF Cost, Insurance and Freight CPT Carriage Paid To CIP Carriage and Insurance Paid To DAT Delivered at Terminal DAP Delivered at Place DDP Delivered Duty Paid INCOTERMS USED FOR ALL MODES OF TRANSPORTATION
EX Ex Works FCA Free Carrier CPT Carriage Paid To CIP Carriage and Insurance Paid To DAT Delivered at Terminal DAP Delivered at Place DDP Delivered Duty Paid INCOTERMS 2010 USED ONLY FOR MARINE
FAS Free Alongside Ship FOB Free On Board CFR Cost and Freight CIF Cost, Insurance and Freight EXW - EX WORKS Goods available only at sellers premises. Buyer: loads the goods on truck or container at the sellers premises, and takes into account the subsequent costs and risks. FCA - FREE CARRIER Delivery at the specified point of departure: the sellers premises or a named cargo terminal / railroad station Buyer: main carriage/freight, cargo insurance and other costs and risks FAS - FREE ALONGSIDE SHIP Seller: places the goods alongside the ship at the named port, loaded at his expense. Buyer: pays loading fee, main carriage/freight, cargo insurance and other costs risks. FOB - FREE ON BOARD Delivery of goods on board the vessel at the port of origin is at the sellers expense. Buyer is responsible for loading fee, main carriage/freight, cargo insurance and other costs risks.
CFR - COST AND FREIGHT Seller: pays the costs and freight to bring the goods to the port of destination. Risk: transferred once the goods have crossed the ships rail. CIF - COST INSURANCE AND FREIGHT Used exactly the same way as CFR except that Seller: must in addition procure and pay for insurance for the cargo insurance and delivery of goods to the port of destination Buyer: responsible for the import customs clearance & other costs and risks CPT - CARRIAGE PAID TO Seller delivers the goods at the named place of destination at his expense. Buyer assumes the cargo insurance, import customs clearance, payment of customs duties and taxes, and other costs and risks. Risk transferred at the delivery of goods CIP - CARRIAGE & INSURANCE PAID TO Seller delivers the goods on the ship. On board, the risk is transferred to the buyer. Buyer is accountable for the import customs clearance, payment of customs duties and taxes, and other costs and risks until goods reach their final destination. DELIVERED AT TERMINAL (DAT) (NAMED PLACE) Named place at terminal on buyers side (a terminal at the destination port or a terminal not far beyond the destination port where its yet to be cleared by Customs) Seller arranges export clearance and delivers goods export packed to the named destination terminal, pays all transport costs thereto and unloads Buyer arranges import clearance and on carriage Transport Mode: All Modes DELIVERED AT PLACE (DAP) (NAMED PLACE)
Named place on buyers side Seller arranges export clearance, delivers export packed goods to the named place of destination and pays all transportation costs thereto Buyer arranges import clearance and on carriage Transport mode: All Modes
DELIVERED DUTY PAID (DDP) (NAMED PLACE) Named place is on buyers side Seller arranges export clearance, delivers export packed goods cleared for import at the named destination and pays all transportation costs thereto Buyer possibly responsible for unloading, on carriage Transport Mode: All Modes
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