Download - Incoterms pankaj
INternational COmmercial TERMS
PRESENTED BY
| PANKAJ PRABHA |&| ANKITA SINGH|
PUNJAB NATIONAL BANK – MANIPAL UNIVERSITY BANGALORE CAMPUS
INCOTERMS
These are internationally accepted commercial terms defining the respective roles and responsibilities (including costs) of the buyer and seller in the arrangement of transportation and other obligations
The Origin and HistoryFirst published by the International Chamber of Commerce (ICC) in 1936 & since updated in 1953, 1967, 1976, 1980, 1990, 2000 and then the current revision in 2010.Incoterms® reflect world-wide trade practices, as practices change, Incoterms® are revised
PurposeTo clarify how functions, costs and risks are split between the buyer and the seller in connection with delivery of goods as required in sales contractEach term clearly specifies the responsibilities of the seller and the buyerDelivery, risks and costs are the critical points
ImportanceReduce the uncertainty caused by trade practices in different countries.Simplify the negotiations involved in international commerce.Ensure common understanding of obligations
Group Term Complete Name Transport ModeE DEPARTURE EXW Ex Works Any F MAIN CARRIAGE UNPAID FCA Free Carrier Any FAS Free Alongside Ship Sea FOB Free on Board Sea C MAIN CARRIAGE PAID CFR Cost and Freight Sea CIF Cost Insurance and Freight Sea CPT Carriage Paid To Any CIP Carriage and Insurance Paid to Any D ARRIVAL DAT Delivered At Terminal Any DAP Delivered At Place Any DDP Delivered Duty Paid Any
Incoterms 2010
Changes in Incoterms from 2000 to 2010
New Terms Added
1. DAT – Delivered at Terminal (named terminal/port of Delivery)2. DAP – Delivered at Place ( named Place of delivery)
Terms Eliminated
1.DAF – Delivered at Frontier (named place of delivery)2.DES – Delivered Ex Ship (named port of delivery)3.DEQ – Delivered Ex Quay (named port of delivery)4.DDU – Delivered Duty Unpaid (named place of destination)
The Steps of Global Logistics
MainInternational
Transportation
4
Handling InboundCustoms
Clearance
Duties
FinalTransportationUnloading
Packing
Loadin
g
PreliminaryTransportation
Customs Clearancefor Export
HandlingOutbound
Insurance
1
2 3
5
6
7
891011
Incoterm 2010
Export-Customs
declaration
Carriage to port of export
Unloading of truck in
port of export
Loading charges in
port of export
Carriage (Sea Freight/Air
Freight) to port of import
Insurance
Loading on truck in port of import
Carriage to place of
destination
Import customs
clearance, Imports Taxes
EXW Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
Incoterm 2010
Export-Customs
declaration
Carriage to port of export
Unloading of truck in
port of export
Loading charges in
port of export
Carriage (Sea Freight/Air
Freight) to port of import
Insurance
Loading on truck in port of import
Carriage to place of
destination
Import customs
clearance, Imports Taxes
FCA Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer
Incoterm 2010
Export-Customs
declaration
Carriage to port of export
Unloading of truck in port
of export
Loading charges in
port of export
Carriage (Sea Freight/Air Freight) to
port of import
InsuranceLoading on
truck in port of import
Carriage to place of
destination
Import customs
clearance, Imports
taxes
FAS Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer
Incoterm 2010
Export-Customs
declaration
Carriage to port of export
Unloading of truck in
port of export
Loading charges in
port of export
Carriage (Sea Freight/Air Freight) to
port of import
InsuranceLoading on
truck in port of import
Carriage to place of
destination
Import customs
clearance, Imports Taxes
FOB Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer
Incoterm 2010
Export-Customs
declaration
Carriage to port of export
Unloading of truck in
port of export
Loading charges in
port of export
Carriage (Sea Freight/Air
Freight) to port of import
Insurance
Loading on truck in port of import
Carriage to place of
destination
Import customs
clearance, Import Taxes
CFR Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer
Incoterm 2010
Export-Customs
declaration
Carriage to port of export
Unloading of truck in
port of export
Loading charges in
port of export
Carriage (Sea Freight/Air
Freight) to port of import
Insurance
Loading on truck in port of import
Carriage to place of
destination
Import customs
clearance, Import Taxes
CIF Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer
Incoterm 2010
Export-Customs
declaration
Carriage to port of export
Unloading of truck in
port of export
Loading charges in
port of export
Carriage (Sea Freight/Air
Freight) to port of import
Insurance
Loading on truck in
port of import
Carriage to place of
destination
Import customs
clearance, Import Taxes
CPT Seller Seller Seller Seller Seller Buyer Seller Buyer Buyer
Incoterm 2010
Export-Customs
declaration
Carriage to port of export
Unloading of truck in
port of export
Loading charges in
port of export
Carriage (Sea Freight/Air
Freight) to port of import
Insurance
Loading on truck in port of import
Carriage to place of
destination
Import customs
clearance, Import Taxes
CIP Seller Seller Seller Seller Seller Seller Seller Buyer Buyer
Incoterm 2010
Export-Customs
declaration
Carriage to port of export
Unloading of truck in
port of export
Loading charges in
port of export
Carriage (Sea Freight/Air
Freight) to port of import
Insurance Terminal Charges
Carriage to place of
destination
Import customs
clearance, Import Taxes
DAT Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer
Incoterm 2010
Export-Customs
declaration
Carriage to port of export
Unloading of truck in
port of export
Loading charges in
port of export
Carriage (Sea Freight/Air Freight) to
port of import
Insurance
Loading on truck in
port of import
Carriage to place of
destination
Import customs
clearance, Import Taxes
DAP Seller Seller Seller Seller Seller Seller Seller Seller Buyer
Incoterm 2010
Export-Customs
declaration
Carriage to port of export
Unloading of truck in
port of export
Loading charges in
port of export
Carriage (Sea Freight/Air Freight) to
port of import
Insurance
Loading on truck in port of import
Carriage to place of
destination
Import customs
clearance, Import Taxes
DDP Seller Seller Seller Seller Seller Seller Seller Seller Seller