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GE Energy Customs ComplianceGE Proprietary InformationGE Energy Customs ComplianceGE Proprietary InformationGE Energy Customs ComplianceGE Proprietary Information

Incoterms: International Commercial Terms are contract terms that show transport obligations, costs and risks.

When we buy, it tells us:

•If we have to make logistics arrangements to move the goods

•If we have to make arrangements to clear goods for export and or import

•What is included in our price (freight, duties, import/export fees,etc).

•If there is a problem in transit, who holds the responsibility

When we sell, it tells us:

•How to price our sales transaction (do we include freight, duties and taxes in our price)

•Do we have to export clear the shipments, do we have to import clear the shipment?

•Do we have to make the logistics arrangements?

•Who is responsibility if there is a problem in transit?

It tells us who should be the importer, who selects the broker, who pays the

duty and what is in our price


ExW,Buyer must exportClear material

FCA,Our preferred Terms

FOB

DDU, DDP

INCO Terms - International Commercial Terms are contract terms that show transport obligations, costs and risks.

• Use “named Place”, ie..Exw Houston, US

• Shows responsibilities of buyers and sellers

• Shows who bears the cost associated with each component of the movement (freight costs, agent fees, customs fees and duties)

Tells us who is Responsible for the Import or Export and who bears the cost of freight, clearance fees and duties!

Moving left to right, the sellers responsibilities increase, while

the buyers responsibilities

decrease

Inco terms show the transfer of risk, not

title!

DDP indicates that the seller should clear the material with their own broker and pay duties

and taxes!

CIF


Common IncotermsCommon Incoterms

Origin Terms

EXW - Ex-Works, named place where shipment is available to the buyer, not loaded.The seller will not contract for any transportation. Buyer bears all cost and risk involved in taking goods from seller’s premises.

International Carriage NOT Paid by Seller

FCA - Free Carrier, unloaded at the seller's dock OR a named place where shipment is available to the international carrier or agent, not loaded. Buyer takes risk of loss at named location.

FOB - Free On Board vessel, named ocean port of shipment. Buyer takes risk of loss once goods are on board vessel.

International Carriage Paid by the Seller

CIF - Cost, Insurance and Freight, named ocean port of destination. Seller completes export process and covers freight and insurance to destination port.

Arrival At Stated Destination

DDU - Delivered Duty Unpaid, named place of destination, not unloaded, not cleared by seller. Buyers obligation is import clearance and duty payment.This term is used for any mode of transportation.

DDP - Delivered Duty Paid, named place of destination, unloaded, cleared. Buyer has no involvement with transportation, customs clearance or duty payment.

This term is used for any mode of transportation.

Use a named place with Inco Terms!


INCOTERM SELLER OBLIGATIONS BUYER OBLIGATIONS RISK OF LOSSPROPER MODE OF

USE

From the Seller to the Buyer once goods are picked up from seller at

the named place

All

Notify the Buyer that goods are available for pick up at the named place and are suitably

packaged for export.Provide export documents for

export clearance

Delivery of goods (packed for export) to named placeClear goods (export)

From the Seller to the Buyer once goods are

delivered to named place

All

All the costs for transporting and clearing

goods from the named place including

export/import clearance

From the Seller to the Buyer once goods are

delivered alongside vessel at named port

Ocean Freight Only

Costs for goods (suitably packed for export) delivered

to named port (includes terminal handling fees)

Arrange for export clearance.

From the Seller to Buyer once goods have

passed over the ships rail

Ocean Freight Only



Ocean Freight Only

All costs to deliver goods to the destination port including

insurance



Ocean Freight Only

EXW-Ex Works

FCA-Free Carrier

All costs from named place to his/her door

including import clearance and delivery

FAS-Free Alongside Ship

All costs once goods are delivered alongside

vessel. Any/all costs resulting from vessel delay or

refusal to load goods.

Deliver goods (suitably packed for export) alongside

vessel at the named port.Clear goods for export

FOB-Free On Board

All costs once goods are delivered to named port

CFR-Cost and Freight

CIF-Cost, Insurance &

Freight

Insurance of goods from port of export to his/her

door. All costs upon arrival at named place including

import clearanceAll costs for import

clearance and delivery of the goods to his/her door

All costs to deliver goods to the named place


INCOTERM SELLER OBLIGATIONS BUYER OBLIGATIONS RISK OF LOSSPROPER MODE OF

USE

From the Seller to Buyer once goods are

delivered to first carrierAll



delivered to first carrierAll

From the Seller to Buyer when goods arrive at the

named placeTruck / Rail

Deliver goods to Buyer at named destination port after

discharging goods off the vessel at quay (wharf)


discharged off the vessel at the quay (wharf)

Ocean Freight Only

From the Seller to the Buyer when goods

delivered to his/her doorAll


From the Seller to Buyer when goods are placed at disposal of the Buyer

on board the vessel

Ocean Freight Only

All costs for delivering goods to Buyer, except import

clearance

From the Seller to the Buyer when goods

delivered to his/her doorAll

CIP-Carriage and Insurance Paid

All costs upon arrival at the named place (Import clearance and delivery)

CPT-Carriage Paid To

Insurance of goods from port of export to his/her

door.All costs upon arrival at named place including import clearance and

All costs to deliver goods to named place including

insurance

DAF-Delivered at Frontier

Clear goods for import and deliver to his/her door

DEQ-Delivered ex Quay

Import clearance and delivery to the final

destination at the country of import

Ends when goods are delivered to buyer on the

arriving means of transport and are cleared for export at

named place adjoining another country

DDP-Delivered Duty Paid

Take delivery of goods at named place

DES-Delivered ex Ship

DDU-Delivered Duty Unpaid

Costs to have goods unloaded from vessel, import clearance, and

delivery to his/her door

All costs for import clearance

All costs to deliver goods to buyer’s door


INCOTERMS 2000 CHART OF RESPONSIBILITY

SellerBuyerSellerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyer

customs duties and

taxes abroad

SellerSellerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyer

delivery charges to

final destination

SellerSellerSellerBuyerSellerSellerSellerBuyerBuyerBuyerBuyerBuyerBuyercharges in foreingport

SellerSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerBuyerBuyerocean freight

SellerSellerSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerBuyerloading on

ocean carrier

SellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerforwarding

fees

SellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyer

port receiving charges

SellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerinland freight

SellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerBuyer

loading at the point of

origin

SellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerexport

packing

SellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller

warehouse labor change

at origin


warehouse storage at point of origin

Seller up to point of delivery


Seller up to point of

unloading at port of import



Buyer; when

material at border

Buyer; when mat'lplaced

on plane

Buyer; when handed to carrier at

time of pick up


time of pick up

Buyer; when passed the ship's rail at

port of export


on ship

Buyer, when mat'lplaced along side

ship


time of pick up

Buyer; mat'lready at seller's

warehouserisk of loss

named port of

destination

named port of

destination

named port of

destination

named port of

destinationnamed place

named port of

destination

named port of

destination

named port of

destination

named port of

destination

named port of

destination

named port of

destinationnamed placenamed placeServices

DelivedredDuty Paid

Delivered Duty Unpaid

Delivered ex Quay ( duty

paid)Delivered ex

ShipDelivered at

Frontier

Carriage & Insurance

PaidCarrieagePaid To

Cost , Insurance &

FreightCost and Freight

Free on Board

Free Alongside

shipFree CarrierEx Workand

DDPDDUDEQDESDAFCIPCPTCIFCFRFOBFASFCAEXWIncoterms

SellerBuyerSellerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyer

customs duties and

taxes abroad

SellerSellerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyer

delivery charges to

final destination

SellerSellerSellerBuyerSellerSellerSellerBuyerBuyerBuyerBuyerBuyerBuyercharges in foreingport

SellerSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerBuyerBuyerocean freight

SellerSellerSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerBuyerloading on

ocean carrier

SellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerforwarding

fees

SellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyer

port receiving charges

SellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerinland freight

SellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerBuyer

loading at the point of

origin

SellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerexport

packing


warehouse labor change

at origin


warehouse storage at point of origin







Buyer; when

material at border


on plane


time of pick up


time of pick up

Buyer; when passed the ship's rail at

port of export


on ship

Buyer, when mat'lplaced along side

ship


time of pick up

Buyer; mat'lready at seller's

warehouserisk of loss

named port of

destination

named port of

destination

named port of

destination

named port of

destinationnamed place

named port of

destination

named port of

destination

named port of

destination

named port of

destination

named port of

destination

named port of

destinationnamed placenamed placeServices

DeliveredDuty Paid

Delivered Duty Unpaid

Delivered ex Quay ( duty

paid)Delivered ex

ShipDelivered at

Frontier

Carriage & Insurance

PaidCarriagePaid To

Cost , Insurance &

FreightCost and Freight

Free on Board

Free Alongside

shipFree CarrierEx Workand

DDPDDUDEQDESDAFCIPCPTCIFCFRFOBFASFCAEXWIncoterms

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