incoterms import & export management ppt

8/13/2019 Incoterms Import & Export Management Ppt

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RecknorsInstitute of Corporate Trainings &

WorkshopLahore Office : 042-36610206, 36610260, 0345-3076375


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EXW Ex-works

FCA Free carrier

FAS Free alongside ship

FOB Free on board CFR Cost and freight CIF Cost, insurance, and

freight CPT Carriage paid to

CIP Carriage andinsurance paid to

DAF Delivered at

frontier DES Delivered ex-ship DEQ Delivered ex-quay DDU Delivered duty

unpaid DDP Delivered duty

paid


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Price is quoted by seller at specified pointof origin i.e.

At point of origin At factory or ware-house Mine or plantation Buyer is responsible for all charges from

this point. Minimum obligation for the EXPORTER


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This term has been designed: To meet the requirements of modern transport, Transport as container or "Roll on / Roll off" traffic by trailers

and ferries as well as carriage by air.

FCA is based on the same principle as FOB except that theseller fulfills his or her obligation when goods are deliveredinto the custody of the carrier at the named point.

If no precise point can be mentioned at the time of thecontract of sale, the parties should refer to the place or rangewhere the carrier should take goods into his charge

The risk of the loss or damage to the goods is transferred fromthe seller to the buyer at that time and not at the ships rail.

Carrier" means a person by whom or in whose name a contractof carriage by road, rail, air, sea or a combination of modes hasbeen made.


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The seller provides delivery on following terms: At the point of shipment and export Not on board Free alongside of the carrier(ocean vessel)

(wharf).

The buyer bears all costs and risks of loss ordamage to the goods from that moment orloading onto ship.


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The seller provides delivery on following terms: At the point when goods have been loaded on

board or designated transporting vehicle. Point Sometimes confused with inland shipping

point. Usually it is point of export. The moment goods pass ships rail responsibility,

risk and loss etc of goods is transferred fromseller to buyer.


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The seller provides delivery on following terms: Sellers liability ends when goods are loaded on

board a carrier OR In custody of carrier at export dock (POINT). Thesellermust pay the costs freight necessary to

bring the goods to the named destination.

The insurance charges are paid by buyerto coverthe the risk of loss or damage. Applicable for sea or inland waterway transport

only.


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Like CFR, CPT means that the seller pays the freightfor the carriage of the goods to the nameddestination.

The risk of loss or damage to the goods, as well asany cost increases, it is transferred from the seller tothe buyer when the goods have been delivered intothe custody of the first carrier.

Not at the ships rail. It can be used for all modes of transportation.


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The seller provides delivery on following terms: Sellers liability does not ends even when goods are

loaded on board a carrier OR In custody of carrier at export dock (POINT).

Thesellermust pay the costs freight necessary to

bring the goods to the named destination. The insurance charges are also paid by seller to

cover the the risk of loss or damage. Sellers insurance company assumes responsibility.


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The seller provides delivery on following terms: The seller makes the goods available to the

buyer on board the ship at the destinationnamed in the sales contract.

The seller bears the full cost and risk involved in

bringing the goods there


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The seller provides delivery on following terms: The seller makes the goods available to the buyer one

step beyond CIF.

The seller not only bears full cost and risk involved inbringing the goods on quay (wharf) at the named port ofdestination, cleared for importation.

The seller has to bear all risks and costs including duties,taxes and other charges for delivering the goods.

This term should not be used if the seller is unable toobtain the import license. If the buyer is the party who will clear the goods for

importation and pay the duty, then the term is changedto "DUTY UNPAID".


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The seller provides delivery on following terms: The export price quote includes cost of delivery to the

importers premises.

Exporter responsible for import duties, cost of un-loading, inland transport in the importing country andrisks of carrying out customs formalities.

It implies maximum exporters obligation. Seller also assumes all risks involved in delivering to the

buyer DDP also called Franco Domicile . This term may be used irrespective of the mode of

transport.


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This term is the same as "Carriage Paid to- Only with the addition that the seller has to

procure transport insurance against the risk ofloss or damage to the goods during the carriage.

The seller pays the insurance premium.


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This term is the same as "Carriage Paid to- Only with the addition that the seller has to

procure transport insurance against the risk ofloss or damage to the goods during the carriage.

The seller pays the insurance premium.

incoterms import & export management ppt

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