Incortems 2000

Table of contents :
EXW - EX Works
FCA - Free Carrier
FAS - Free Alongside Ship
FOB - Free On Board
CFR - Cost and Freight
CPT - Carriage Paid To
CIP - Carriage and Insurance Paid to
DES - Delivered Ex Ship
DEQ - Delivered Ex Quay
DDU - Delivered Duty Unpaid
DDU - Delivered Duty Paid
DAF - Delivered at Frontier

The Incoterms were established in 1936 by the International Chamber of Commerce in Paris in order to unify trade terms interpretation. Until now, 6 new editition have been published.

Incoterms significantly reduce misunderstandings resulting from the lack of trade practice knowledge. Using the Incoterms in international contacts, partners can be sure that the resposibility of each side is specified in safe and easy way.

On the September, 13^th 1999 the ICC published the millenium editition, the Incoterms 2000, which take into account electronic trade documents, modern logistics and problems with the interpretation of previous issues.

Examples:
FOB Liverpool Incoterms 2000
DDU Frankfurt Schmidt GmbH Warehouse 4 Incoterms 2000
CPT Smith Carriers, Inc. Main Warehouse New York Incoterms 2000

Construction:
INCOTERM [ 3 letters ] + PLACE [ eventually country ] + " INCOTERMS 2000 CCI "

Incoterms rules do not deal with overtaking the right of ownership, but regulate:

the division of costs concearning the transportation,
moment of moving the risk from seller to buyer while transporting,

Basic Incoterms 2000:

EXW = EX Works

All means of transport

Title and risk pass to buyer including payment of all transportation and insurance cost from the seller's door.

FCA = Free Carrier

All means of transport

Title and risk pass to buyer including transportation and insurance cost when the seller delivers goods cleared for export to the carrier.Seller is obligated to load the goods on the Buyer's collecting vehicle; it is the Buyer's obligation to recieve the Seller's arriving vehicle unloaded.

FAS = Free Alongside Ship

Naval transport

Title and risk pass to buyer including payment of all transportation and insurance cost once delivered alongside ship by the seller. Used for sea or inland waterway transportation. The export clearance obligation rests with the seller.

FOB = Free On Board

Naval transport

Free On Board and risk pass to buyer including payment of all transportation and insurance cost once delivered on board the ship by the seller. Used for sea or inland waterway transportation.

CFR = Cost and Freight ( ....oznaczony port przeznaczenia)

Naval transport - for combined transport it is adviced to apply CPT incoterm

Title, risk and insurance cost pass to buyer when delivered on board the ship by seller who pays the transportation cost to the destination port. Used for sea or inland waterway transportation.

CIF = Cost, Insurance and Freight

Naval transport - for combined transport it is adviced to apply CIP incoterm

Title and risk pass to buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation.

CPT = Carriage Paid to

All means of transport including combined

The seller pays the freight for carriage of the goods to the named destination. The risk of loss of, or damage to the goods, as well as any additional costs due to the events occurring after the time the goods have been delivered into the custody of the carrier. In this context, "carrier" means any person who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway, or by a combination of such modes. If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The CPT team requires the seller to clear the goods for export. The term applies to any mode of transport, including multi-modal transport.

CIP = Carriage and Insurance Paid to

All means of transport including combined

The seller has the same obligations as under CPT, but must also procure cargo insurance against the buyer’s risk of loss of, or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium, although he is required to obtain only minimum coverage. The seller must clear the goods for export.

DES = Delivered Ex Ship

Naval or combined transport

The seller satisfies his obligation to deliver when the goods are available to the buyer on board the ship uncleared for import at the named port of destination.

DEQ = Delivered Ex Quay

Naval or combined transport

The seller fulfills his obligation to deliver when the goods are available to the buyer on the quay (wharf) at the named port of destination cleared for importation.

DDU = Delivered Duty Unpaid

All means of transport

The seller fulfills his obligation to deliver when the goods are available at the named place in the country of importation.

DDP = Delivered Duty Paid (...oznaczone miejsce przeznaczenia)

Wszystkie środki transportu

Title and risk pass to buyer when seller delivers goods to named destination point cleared for import. Used for any mode of transportation.

DAF = Delivered at Frontier

All means of transport with inland frontier

The seller fulfills his obligation to deliver when the goods are available, cleared for export, at the named point and place at the frontier, but before the customs border of the adjoining country. The term "frontier" covers any frontier including that of the country of export. Therefore, it is vital that the frontier in question be defined precisely by naming the point and place in the term. The term applies primarily to the goods carried by rail, or road, but may be used for any mode of transport.

Chart of Responsibility

The following chart summarizes the responsibilities of both the buyer and seller for each of the current 13 INCOTERMS.

EXW

FCA

FAS

FOB

CFR

CIF

CPT

CIP

DAF

DES

DEQ

DDU

DDP

Warehouse Storage

Seller

Warehouse Labor

Seller

Export Packing

Seller

Loading Charges

Buyer

Seller

Inland Freight

Buyer

Buyer/
Seller*

Seller

Terminal Charges

Buyer

Seller

Forwarder's Fees

Buyer

Seller

Loading On Vessel

Buyer

Seller

Ocean/Air Freight

Buyer

Seller

Charges On Arrival At Destination

Buyer

Seller

Buyer

Seller

Duty, Taxes & Customs Clearance

Buyer

Seller

Delivery To Destination

Buyer

Seller

Incortems 2000

Basic Incoterms 2000:

Chart of Responsibility

Logistics