Incoterms

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Incoterms 2000
English www.if.fi

THE TRADE TERMS OF THE INTERNATIONAL CHAMBER OF COMMERCE
WHAT IS A TRADE TERM? WHAT OBLIGATIONS DOES A TRADE TERM SPECIFY?
A trade term is a combination of letters or words, which specifies certain obligations within the sales contract.

The trade term specifies the 1. Transfer of risk - when the seller has the right to claim for the contract price evenif the goods are lost, damaged or short-delivered. 2. Transfer of obligations - where and how the seller must make the goods available to the buyer and how the buyer must take delivery of the goods. INCOTERMS are a set of international rules for the interpretation of the 13 trade terms published by the International Chamber of Commerce (ICC). After the chosen trade term one should state - the namedpoint where the costs transfer and - "...Incoterms 2000" The use of trade terms in connection with different modes of transport in the export and import of goods is described below.

3. Division of costs - how the normal costs relating to the export and import of goods should be divided between the seller and the buyer.

WHAT ARE INCOTERMS? TRADE TERMS AND NAMED POINT OF DELIVERY TRADE TERMSAND MODE OF TRANSPORT

Responsibilities are simply and clearly defined by referring to one of the ICC INCOTERMS. Thus the risk of misunderstanding and subsequent disputes is eliminated. For instance "CIF Hamburg Incoterms 2000".

+ = recommended - = not recommended

TRADE TERM
Sea Road

MODE OF TRANSPORT
Rail Air Container Combined transport

EXW FCA FAS FOB CFR CIF CPT CIP DAF DES DEQDDU DDP

TRADE TERMS AND CARGO INSURANCE

The need for cargo insurance follows the risk of loss or damage, i.e. each party arranges for insurance for the part of the carriage when the goods are at his risk.

According to the terms CIF and CIP the seller must arrange cargo insurance in favour of the buyer.

This brochure is our summary of the contents of the trade terms.

IMPORT LTDDEPOT CUSTOMS CUSTOMS

EXW FCA FAS FOB CFR CIF CPT CIP DAF DES DEQ DDU DDP
LEGEND

THE GOODS HAVE BEEN PLACED AT THE DISPOSAL OF THE BUYER

THE GOODS HAVE BEEN DELIVERED TO THE CARRIER

DELIVERED ALONGSIDE THE SHIP

THE GOODS HAVE PASSED THE SHIP'S RAIL

THE GOODS HAVE PASSED THE SHIP'S RAIL

THE GOODS HAVE PASSED THE SHIP'S RAIL

THE GOODS HAVE BEEN DELIVERED TO THE CARRIER

THEGOODS HAVE BEEN DELIVERED TO THE CARRIER

THE GOODS HAVE BEEN PLACED AT THE DISPOSAL OF THE BUYER ON THE MEANS OF TRANSPORT AT THE NAMED FRONTIER

READY FOR UNLOADING AT NAMED PORT OF DESTINATION

DELIVERED ON THE QUAY AT NAMED PORT OF DESTINATION

PLACED AT THE DISPOSAL OF THE BUYER ON ANY ARRIVING MEANS OF TRANSPORT DUTY UNPAID

PLACED AT THE DISPOSAL OF THE BUYER DUTY PAID AND NOTUNLOADED AT THE NAMED PLACE OF DESTINATION

= THE RISK OF LOSS TRANSFERS (THE NEED FOR INSURANCE)

= THE MAIN OBLIGATIONS TRANSFER

= THE BURDEN OF COSTS TRANSFERS

- ACCORDING TO AN E-TERM, THE SELLER PLACES THE GOODS AT THE DISPOSAL OF THE BUYER - ACCORDING TO A F-TERM, THE SELLER DELIVERS THE GOODS TO THE CARRIER NAMED BY THE BUYER - ACCORDING TO A C-TERM, THE SELLER CONTRACTS FOR CARRIAGEAND DELIVERS THE GOODS INTO THE CUSTODY OF THE CARRIER - ACCORDING TO A D-TERM, THE SELLER CONTRACTS FOR CARRIAGE AND DELIVERS THE GOODS AT THE NAMED PLACE OF DESTINATION

THE SELLER MUST
EXW FCA FAS FOB CFR CIF CPT CIP DAF DES DEQ DDU DDP
- provide appropriate packing and marking - place the goods at the disposal of the buyer at the named place of delivery - on request assist the buyer withthe export documentation by the buyer, not unloaded, in the seller's means of transport - provide appropriate packing and marking (delivery at the depot or elsewhere) - load the goods on the means of transport nominated by the - carry out the export procedures and provide the buyer with the buyer (delivery at the seller's premises) or document received for the delivery of the goods place the...
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