INCOTERMS 2000Incoterms – Purpose and ScopeSlide 3Incoterms – Who needs to know?Incoterms 2000EXW EX WORKS (…named place)Slide 7FCA FREE CARRIER (named place)FAS -FREE ALONGSIDE SHIP (…named port of shipment)FOB – FREE ON BOARD (…named port of shipment)Slide 11CFR – COST AND FREIGHT (…named port of destination)CIF – COST, INSURANCE AND FREIGHT (…named port of destination)CPT – CARRIAGE PAID TO (…named place of destination)CIP – CARRIAGE AND INSURANCE PAID TO (…named place of destination)Slide 16DAF – DELIVERED AT FRONTIER (…named place)DES – DELIVERED EX SHIP (…named port of destination)DEQ – DELIVERED EX QUAY (…named port of destination)DDU – DELIVERED DUTY UNPAID (…named place of destination)DDP – DELIVERED DUTY PAID (…named place of destination)Mode of Transport and Appropriate Incoterm - Any Mode of TransportMode of Transport and Appropriate Incoterm – Maritime and Inland Waterway Transport OnlyBill of Lading and Electronic CommerceNon-negotiable Transport Documents Instead of Bills of LadingINCOTERMS 2000ICC (International Chamber of Commerce) Official Rules for the Interpretation of Trade terms.Purpose is to provide a set of international rules for the interpretation of the most commonly used trade terms.10 categories describing where risks lie between seller and buyerInternational Commercial Terms (INCOTERMS)Incoterms – Purpose and ScopePricing terms, shipping terms, sales termsApply to international tradeDefine the rights and obligation of the parties to the contract of sale with respect to the delivery of goods sold.Incoterms – Purpose and ScopeDoes not include “intangibles.”Do not provide for all the duties which parties may include in a sales contract.Does not include breach of contract.Incoterms – Who needs to know?ImportersExportersInsurersBankersIncoterms 2000The “E”-term is the term in which the seller’s obligation is at its minimum.EXW EX WORKS (…named place)Seller delivers when goods placed at disposal of buyerMinimum obligation for the seller.Incoterms 2000The “F” –terms require the seller to deliver goods for carriage as instructed by the buyer.FCAFASFOBFCAFREE CARRIER (named place)Seller delivers when goods, cleared for export, to the carrier nominated by the buyer at a named place.Term may be used irrespective of the mode of transport.Seller obligated to load goods on arriving vehicle if it arrives at the seller’s premises.Seller not obliged to unload goods from his vehicle.FAS -FREE ALONGSIDE SHIP(…named port of shipment)Seller delivers when goods, cleared for export, are placed alongside the vesselThe buyer bears all costs and risks of loss or damage to the goods from that moment.Terms can be used for sea or inland waterway transport only.Seller obliged to clear goods for export.FOB – FREE ON BOARD(…named port of shipment)Seller delivers when goods, cleared for export, pass the ship’s rail at the named port of shipment.The buyer bears all costs and risks of loss or damage to the goods from that point.Term can be used for sea or inland waterway transport only.If intent is not to deliver goods across the ship’s rail, use FCAIncoterms 2000The “C” –terms require the seller to contract for carriage at his expense – to a specified point.CFRCIFCPTCIPCFR – COST AND FREIGHT(…named port of destination)Seller delivers when goods, cleared for export, pass the ship’s rail at the named port of shipment.The seller pays the costs and freight necessary to bring goods to port of destination, but the buyer bears the risk of loss and additional costs occurring after delivery.Term can be used for sea or inland waterway transport.If intent is not to deliver goods across the ship’s rail, use CPTCIF – COST, INSURANCE AND FREIGHT (…named port of destination)Seller delivers when goods, cleared for export, pass the ship’s rail at the named port of shipment.The seller pays the costs and freight necessary to bring goods to port of destination, but the buyer bears the risk of loss and additional costs occurring after delivery.The seller procures marine insurance, against buyer’s risk of loss. Seller is required to obtain insurance only on minimum cover.Term can be used for sea or inland waterway transport.If intent is not to deliver goods across the ship’s rail, use CIP.CPT – CARRIAGE PAID TO (…named place of destination)Seller delivers the goods, cleared for export, to the carrier.The seller pays the costs of carriage necessary to bring goods to named destination, but the buyer bears the risk of loss and additional costs occurring after delivery.Term may be used irrespective of mode of transport.CIP – CARRIAGE AND INSURANCE PAID TO (…named place of destination)Seller delivers the goods, cleared for export, the the carrier.The seller pays the costs of carriage to named destination, but the buyer bears the risk of loss and additional costs occurring after delivery.The seller procures insurance against buyer’s risk of loss. Seller is required to obtain insurance only on a minimum cover.Term may be used irrespective of mode of transport.Incoterms 2000The “D” –terms require the seller to take the goods all the way to destination at the border or within the country of import.DAFDESDEQDDUDDPDAF – DELIVERED AT FRONTIER (…named place)Seller delivers goods, cleared for export, at disposal of buyer on arriving means of transport.Not unloaded, not cleared for import at point at frontier before customs border of adjoining country.Term may be used irrespective of the mode of transport when goods are delivered at a land frontier.If delivery is to take place in the port of destination, DES or DEQ should be used.DES – DELIVERED EX SHIP (…named port of destination)Seller delivers goods at disposal of buyer on board the ship.Not cleared for import at the named port of destination.Seller bears all costs and risks to bring goods to the named port before discharging.Term used only for delivery by sea.If the seller is to bear the costs of discharging the goods, DEQ should be used.DEQ – DELIVERED EX QUAY (…named port of destination)Seller delivers goods, not cleared for import, at disposal of buyer on the quay at the named port of destination.Seller bears all