Incoterms 2010 (eng)

nullINCOTERMS 2010INCOTERMS 2010 THE AGREEMENT BETWEEN BUYER/IMPORTER AND SELLER/EXPORTERTHE AGREEMENT BETWEEN BUYER/IMPORTER AND SELLER/EXPORTERDuring the state of negotiation the seller and buyer must, among other things, agree on how the costs and risks that occur during the transport should be divided. Therefore the terms of delivery is an important part of the deal. TERMS OF DELIVERYTERMS OF DELIVERY Terms of delivery gives information to the buyer and seller about following: -Who will pay freight and other costs in connection with transport? Who will bear the risk in the eventuality of damage/loss of the goods and therefore have the insureble interest? -Who will take care of export/import clearance and security clearance?GENERALLY ABOUT INCOTERMS 2010GENERALLY ABOUT INCOTERMS 2010To minimize the risk of using different terms of delivery and dissimilar interpretation of the terms of delivery in question, the International Chamber of Commerce (ICC) has since 1936 gathered up the most common terms of delivery with interpretation in the book “Incoterms”. Incoterms are accepted in most countries. Since the first edition, Incoterms has regularly been revised – the latest edition being from the year 2010. By referring to these rules both buyer and seller can avoid unnecessary mistakes, i.e.having different conceptions on the terms of delivery. INCOTERMS 2010 ARE DIVIDED IN TO TWO GROUPSINCOTERMS 2010 ARE DIVIDED IN TO TWO GROUPSEXW – EX WORKS EXW – EX WORKS Interest of insuranceTransfer of risks Costs SellerBuyerFreigh tcost Buyer bear all costs. Transfer of risk Is when the goods is placed at the agreed point. Other Buyer is responsible for loading the vehicle. Buyer is responsible for export clearance and security clearance. FCA – FREE CARRIER FCA – FREE CARRIER Interest of insuranceTransfer of risksCosts Seller BuyerFreight cost Seller bear the costs to agreed point include on loading on first vehicle. Transfer of risk Is when the goods is placed on agreed point and time. Other Buyer shall arrange and bear the cost of transportation to agreed point. Seller shall arrange export clearance and security clearance.FAS – FREE ALONGSIDE SHIP FAS – FREE ALONGSIDE SHIP Interest of insuranceTransfer of risksCostsSellerBuyerFreight cost Seller bear the freight costs to agreed point, off loaded and placed alongside ship. Transfer of risk Is when the goods is placed alongside the ship. Other Not appropriate for container transport. Buyer bear the cost for on loading the ship in departing seaport. Seller shall arrange export clearance and security clearance in departing country. FOB – FREE ON BOARD FOB – FREE ON BOARD Interest of insuranceTransfer of risksCosts Seller BuyerFreight cost Seller bear the transportation costs until the goods are loaded on board the ship. Transfer of risk Is when the goods are loaded on board the ship in departing seport. Other Not appropriate for container transport. Seller shall arrange export clearance and security clearance in departing country. CFR – COST AND FREIGHT CFR – COST AND FREIGHT Interest of insuranceTransfer of risksCosts Seller BuyerFreight cost Seller bears all freight costs to appointed seaport in destination country. Transfer of risk Is when the goods is loaded on board the ship in departing seaport. Other Not appropriate for container transport. If offloading cost are included in freight invoice seller will bear the cost. Seller must, in a timely manner advice buyer with applicable information so buyer can arrange import clearance and security clearance.CIF – CARRIAGE AND INSURANCE PAID TO CIF – CARRIAGE AND INSURANCE PAID TO Interest of insuranceTransfer of risksCostsSellerBuyerFreight cost Seller bears all freight costs to appointed seaport in destination country. Transfer of risk Is when the goods is loaded on board the ship in departing seaport Ohter Seller must obtain at its own expense cargo insurance complying at least with minimum cover as provided by Clauses (C) of the institute Cargo Clauses. The insurance shall cover, at a minimum, the price provided in the contract plus 10%. Seller must, in a timely manner advice buyer with applicable information so buyer can arrange import clearance and security clearance. CPT – CARRIAGE PAID TO CPT – CARRIAGE PAID TO Interest of insuranceTransfer of risksCostsSellerBuyerFreight Cost Seller bear the costs to agreed point Transfer of risk Is when the goods is placed on agreed point and time. Other If offloading cost are included in freight invoice seller will bear the cost. Seller must, in a timely manner advice buyer with applicable information so buyer can arrange import clearance and security clearance.CIP – CARRIAGE AND INSURANCE PAID TO CIP – CARRIAGE AND INSURANCE PAID TO Interest of insuranceTransfer of risksCostsSellerBuyerFreight cost Seller bear the costs to agreed point include on loading on first vehicle. Transfer of risk Is when the goods is loaded on the first vehicle. Ohter Seller must obtain at its own expense cargo insurance complying at least with minimum cover as provided by Clauses (C) of the institute Cargo Clauses. The insurance shall cover, at a minimum, the price provided in the contract plus 10%. Seller must, in a timely manner advice buyer with applicable information so buyer can arrange import clearance and security clearance. DAT – DELIVERED AT TERMINAL DAT – DELIVERED AT TERMINAL Interest of insuranceTransfer of risksCostsSellerBuyerFreight cost Seller bears the freight costs unloaded at appointed named terminal. Transfer of risk Is when the goods are delivered unloaded at named terminal. Other Seller must specify the correct terminal name and address, and inform buyer when the goods is ready for delivery. If terminal address is unknown should seller use DAP. Seller must, in a timely manner advice buyer with applicable information so buyer can arrange import clearance and security clearance. DAP – DELIVERED AT POINT DAP – DELIVERED AT POINT SellerBuyerFreight cost Seller bears the freight costs ta agreed point not unloaded. Transfer of risk Is when the goods are at disposal to the buyer at agreed point, not unloaded. Other Seller must, in a timely manner advice buyer with applicable information so buyer can arrange import clearance and security clearance. Interest of insuranceTransfer of riskCosts DDP – DELIVERED DUTY PAID DDP – DELIVERED DUTY PAID Interest of insuranceTransfer of riskCosts Seller buýerFreight cost Seller bears the freight costs ta agreed point not unloaded. Transfer of risk Is when the goods are at disposal to the buyer at agreed point, not unloaded. Other Seller bear all costs for VAT and Custom duties, if nothing else is agreed f seller is not 100% sure that buyer are capable to arrange with customs clearance on arrival in receiver country, seller should not use DDP.