«Incoterms» Prepared by the students of the group PM2-3 Mitrinyuk Yana, Zvezdova Ksenia

Incoterms The Incoterms rules or International Commercial Terms are a series of pre- defined commercial terms published by the International Chamber of Commerce (ICC). They 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 worldwide.

Applicable to all transport modes: EXW ExWorks. The sellers responsibility ends when it places the goods at its factory or warehouse for the buyer to pick up. FCA Free Carrier. The seller is required to deliver the goods to the carrier or another person nominated by the buyer at the sellers premises or another named place. The seller is required for export clearance, if its an international transaction. CPT Carrier Paid To. It is similar to FCA, except that the seller must pay for transportation. CIP Carriage and Insurance Paid to. This is similar to CPT, except that it also requires the seller to pay for insurance covering loss or damage to the goods during the transport process. DAT -Delivery at Terminal. This is one of the two new terms. The seller accomplishes the delivery when the goods once unloaded whether by vessel, aircraft, truck, train or pipeline are placed at the buyers disposal at the specified terminal at the port or destination specified in the contract of sale. DAP -Delivery at Place. This is the other new term. Itis similar to DAT, except that delivery can be accomplished at any place mutually agreed upon. DDP -Delivered Duty Paid. It is similar to DAP and DAT except that if its an international sale, the seller is required to arrange import clearance and pay any Customs duties.

Applicable only to sea or inland waterway transport: FAS Free Alongside Ship. The seller completes its responsibility to the buyer once the goods are placed alongside a vessel at a port named by the buyer. FOB Free on board. This is similar to FAS, except that the seller is responsible for the loading of the goods. CFR Cost and Freight. This gives the seller the additional responsibility of paying for the waterborne transportation. However, it does not necessarily designate the port from which the goods are to be shipped, so the buyer has to negotiate that with the seller if it wants to include the port. CIF Cost Insurance and Freight. This is similar to CFR, except that the seller is also responsible for buying insurance. Its also similar to CIP, except that CIF only applies to marine transportation.

Arrival At Stated Destination DAF Delivered At Frontier, named place of destination, by land, not unloaded. The seller delivers when the goods are placed at the disposal of the buyer on the means of transport not unloaded, cleared for export, but not cleared for import at the named point and place at the frontier, but before the customs border of the adjoining country. The term frontier may be used for any frontier including that of the country of export. This term is used for any mode of transportation but delivered by land.

DES Delivered Ex-Ship, named port of destination, not unloaded. The seller delivers when the goods are placed at the disposal of the buyer on board the ship not cleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination before discharging. This term is used for ocean shipments only. DEQ Delivered Ex-Quay, named port of destination, unloaded, not cleared. The seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the quay (wharf) at the named port of destination. The seller has to bear costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay (wharf). The DEQ term requires the buyer to clear the goods for import and to pay for all formalities, duties, taxes and other charges upon import. This term is used for ocean shipments only.

DDU Delivered Duty Unpaid, named place of destination, not unloaded, not cleared. Duty has to be borne by the buyer as well as any costs and risks caused by his failure to clear the goods for import in time. This term is used for any mode of transportation. DDP - Delivered Duty Paid, named place of destination, not unloaded, cleared. This term is used for any mode of transportation

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