155929History of INCOTERM 2010

155929

History of INCOTERM 2010

History of INCOTERM 2010

International Chamber of Commerce The International Chamber of Commerce (ICC) meets every 10 years for members of the International Chamber of Commerce to lay down rules for international delivery of goods. (International Commercial Terms: INCOTERMS) entered into force in 1936 and has since been amended several times since 1953, 1967, 1980, 1990, and 2000. It is currently amended in 2010 (commencing January 1, 2011) to make these rules consistent with the Technology Trade Code of Conduct. Electronic communication and Logistic and Supply Chain systems that have evolved and changed. By specifying the scope of INCOTERMS 2010 to be limited to matters relating to the rights and obligations of the counterparty in relation to the delivery of the goods sold, comprising 11 agreements, which are:

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 Insurance Paid to)
DAT (Delivered at Terminal)
DAP (Delivered at Place)
DDP (Delivered Duty Paid)

EXW(Ex Works)

The seller delivers the goods to the buyer at the seller’s office such as a factory or a warehouse, etc. The buyer bears the responsibility for the processing and costs and risks after the delivery of the goods, such as loading the goods onto a vehicle. performing the departure formalities, etc.

Seller’s Responsibilities

The seller must prepare the product. invoice and any other evidence stipulated in the contract The seller is not burdened with loading and unloading the goods for the buyer. There is no obligation to proceed through export formalities. The seller is not obliged to enter into a contract for transportation arrangements. and insurance contract. The seller must pay all costs related to the packaging of the product.

Carrying out inspections (such as quality checks, measurements, weighing, counting) and bear the risk of loss or damage to the goods until the goods have been delivered. The seller must provide assistance, provide documentation and provide the information the buyer needs for export. such as product safety inspection license or other official authorizations required for export, import and/or for the purpose of transporting goods to destinations. at the buyer’s risk and expense.

Buyer’s Responsibilities

The buyer bears all risk of loss or damage of the goods from the time the goods have been delivered. or the agreed date or the end date of the period for delivery.
The purchaser must pay the price as specified in the purchase contract. Pay for the procurement of export and import licenses or any authorization, including payment of any inspection costs required to be carried out prior to export. The audit is scheduled to be carried out by the competent authority of the exporting country. The buyer is obliged to go through the export formalities. pay tax and all other burdens

FCA (Free Carrier)

The seller must complete the outbound formalities. and deliver the goods to be the responsibility of the carrier at the delivery place designated by the buyer.

Seller’s Responsibilities

The seller must prepare the product. invoice and any other evidence stipulated in the contract The seller is obliged to carry the goods on the means of transport specified by the buyer. The seller must pay the costs of conducting inspections (such as quality inspection, measuring, weighing, counting) pay for any inspections that are required to be carried out prior to shipment. The audit is scheduled to be carried out by the competent authority of the exporting country.

The seller must pack the product. provide export license and go through export formalities at their own expense including paying taxes and all other charges, but the seller is not obligated to contract for transportation and insurance contracts The seller bears the risk of loss or damage of the goods until the goods have been delivered. The seller must provide assistance, provide documentation and provide any and all information, including safety-related information, that the buyer may require in order to import the goods. and/or for transportation to the destination at the buyer’s risk and expense.

Buyer’s Responsibilities

The buyer bears all risk of loss or damage of the goods from the time the goods have been delivered. or the agreed date or the end date of the agreed period for delivery. The buyer must contract for the delivery of the goods from the specified delivery location at his own expense.

The purchaser must pay the price as specified in the purchase contract. pay check The cost of obtaining a license for importation Various costs for shipping through any country for importation as well as payment of expenses in the process of importing including taxes and all other charges for import

FAS (Free Alongside Ship)

The seller is responsible for transporting the goods to be placed on the side of the ship, for example on the front of the ship or in the barge or on the barge at the specified port of export. The buyer bears all costs including the risk of damage. or loss that occurs after This Agreement only applies to sea or inland waterway transport.

Seller’s Responsibilities

The seller must prepare the product. invoice and any other evidence stipulated in the contract The seller must deliver the goods by placing them on the side of the vessel at the port of origin specified by the purchaser. The seller must pay the costs of conducting audits (such as quality inspection, measuring, weighing, counting). export The seller must pack the product. and expenses for export formalities including taxes and all other charges payable upon export. In addition, the seller bears all risk of loss or damage of the goods. until the goods have been delivered But there is no duty to contract for transportation arrangements. and insurance contracts

Buyer’s Responsibilities

The purchaser must pay the price as specified in the purchase contract. provide import license or other official authorizations and through import formalities and transporting goods through any country at their own risk and expense. by having to make a contract to handle the shipment of goods from the specified port of origin Buyers may enter into an insurance contract at their own expense. and bear all risk of loss or damage of the goods from the time the goods have been delivered. The buyer must pay all costs related to the goods from the time the goods have been delivered, all taxes, duties and other charges.

FOB (Free On Board)

The seller is responsible for delivering the goods onto the vessel at the specified port of export. The purchaser shall bear all costs including any risk of damage or loss incurred when the item is on board. This Agreement only applies to sea or inland waterway transport.

Seller’s Responsibilities

The seller must prepare the product. invoice and any other evidence stipulated in the contract The seller must deliver the goods by placing them on board the vessel at the unloading point at the port of origin specified by the purchaser. on the date or within the agreed period The seller must pay the costs of conducting audits (such as quality inspection, measuring, weighing, counting). export The seller must pack the product. and the costs of export clearance, including all taxes, duties and other charges payable upon export. In addition, the seller bears all risk of loss or damage of the goods. until the goods have been delivered But there is no duty to contract for transportation arrangements. and insurance contracts

Buyer’s Responsibilities

The purchaser must pay the price as specified in the purchase contract. provide import license or other formal authorization through import formalities and transporting goods through any country at their own risk and expense. whereby the buyer must contract to deliver the goods from the specified port of origin Buyers may enter into an insurance contract at their own expense. and the buyer bears all risk of loss or damage of the goods since The time the product has been delivered The purchaser must pay all costs related to the goods from the time the goods have been delivered. The buyer is responsible for paying the duties and taxes. and all other burdens

CFR (Cost and Freight)

The seller bears the cost. and transportation costs for delivery to the destination as specified But the buyer bears the risk of damage or loss. including costs incurred for any reason after the cargo has been unloaded from the barge at the port of export. This Agreement applies only to carriage by sea or inland waterways.

Seller’s Responsibilities

The seller must prepare the product. invoice and any other evidence as stipulated by the contract The seller must pay the costs of conducting inspections (such as quality inspection, measuring, weighing, counting) as well as any pre-shipment inspection costs determined by the authority. have the power of the exporting country The seller must contract or procure a contract for the carriage of goods by placing it on board a vessel at a specified port of destination or at any point at that port. including costs for the transport of goods through any country which has been determined to be borne by the Seller under the Contract of Carriage; but the seller is not obligated to enter into an insurance contract.

In addition, the seller bears all risk of loss or damage of the goods. until the goods have been delivered and must pay all costs related to the goods until the goods have been delivered. All freight and other expenses resulting from the transportation of the goods from the agreed delivery point. including the cost of loading and unloading goods on board and any burdens in loading and unloading goods from the vessel at the port of loading and unloading the goods at the destination and expenses for export clearance, taxes, duties and other burdens that must be paid upon export.

Buyer’s Responsibilities

The purchaser must pay the price as specified in the purchase contract. The buyer must supply an import license. or other official authorizations and through import formalities at their own risk and expense. The buyer bears all risk of loss or damage of the goods from the time the goods have been delivered. and the buyer must pay all costs related to the goods from the time the goods have been delivered. various expenses in loading and unloading goods from the ship including transport costs and port usage charges, taxes, duties, and other charges

CIF (Cost Insurance and Freight)

The seller bears the same liability as CFR, with liability insurance against the risk of damage. or lost during transportation to the destination port The seller is the contract and pays the insurance. This Agreement only applies to sea or inland waterway transport.

Seller’s Responsibilities

The seller must prepare the product. invoice and any other evidence as stipulated in the contract The seller must repackage the product at his own expense. provide export license or other official authorizations for export The seller must pay the costs of performing inspections (such as quality checks, measurements, weighing, counting) for the delivery of the goods. any cost of inspection before delivery that is determined by the competent authority of the exporting country as well as through export formalities and transportation through any country before delivery at its own risk and expense. make an insurance contract and the seller bears all risk of loss or damage of the goods. until the goods have been delivered including payment of freight and other expenses at the place of delivery to the specified port of destination. The seller must pay for the insurance. The cost of going through export formalities Taxes, duties and other charges to be paid for export

Buyer’s Responsibilities

The purchaser must pay the price as specified in the purchase contract. pay for any audit costs before delivery of goods as stipulated in the contract provide import license or other official authorizations and carry out import formalities. At their own risk and expense, the Buyer bears all risk of loss or damage of the Goods from the time the Goods are delivered. and the buyer must pay all costs related to the goods from the time the goods have been delivered. various expenses in loading and unloading goods from the ship, including the cost of the barge and port use, taxes, duties and other charges

CPT (Carriage Paid to)

The seller is responsible for shipping costs to the specified destination. The buyer will bear the risk of damage or loss, including expenses incurred due to any reason. after the goods have been delivered to the carrier

CIP (Carriage Insurance Paid to)

The seller bears the same responsibility as CPT, with the responsibility to insure the buyer against the risk of damage. or lost during transportation to the named place of destination The seller is the contract and pays for the insurance by himself. This Agreement may apply in the case of more than one mode of transport.

Seller’s Responsibilities

The seller must prepare the product. invoice and any other evidence stipulated in the contract The seller is obliged to contract or provide a contract for the carriage of goods from the place of delivery to the specified place of destination at the expense of the seller. The seller must deliver the goods to the carrier on the date or within the agreed period. The seller must contract insurance at his own expense. The seller must pay the costs of conducting audits (such as quality inspection, measuring, weighing, counting). export The seller must pack the product.

Provide export license and go through export formalities at their own expense including transporting goods through any country before delivery at the seller’s risk and expense. Pay the cost of unloading the goods and any burdens in loading and unloading goods at the place of destination pay tax and other burdens for export

The seller must provide assistance, provide documentation and provide any information. including the safety information that buyers need for importing products and/or for transportation to the destination at the buyer’s risk and expense.

Buyer’s Responsibilities

The purchaser must pay the price as specified in the purchase contract. provide import license or other official authorizations and go through the import formalities including transporting goods through any country for importing at their own risk and expense The buyer must accept the delivery of the goods once the goods have been delivered. and receive the goods from the freight forwarder at the specified destination bear all risk of loss or damage of the goods from the time the goods have been delivered Pay all costs related to the goods from the time the goods have been delivered. Buyer is not obliged to contract for transportation arrangements. and has no obligation to enter into an insurance contract

DAT (Delivered at Terminal)

The seller delivers the goods at the agreed location. and unloading goods from the vehicle The place could be the name of the wharf. or destination which may be a warehouse Container Yard (CY: Container Yard) or name of street, train or Air Cargo Terminal where all freight charges are borne by the seller. This Agreement may apply in the event of more than one mode of transport.

Seller’s Responsibilities

The seller must prepare the product. invoice and any other evidence stipulated in the contract The seller is obliged to contract or provide a contract for the carriage of the goods from the place of delivery to the specified place of destination. at the expense of the seller

The seller must deliver the goods to the carrier. on the date or within the agreed period The seller may enter into an insurance contract at his own expense. The Seller shall pay the costs of conducting the inspection (eg quality inspection, measuring, weighing, counting). The competent work of the exporting country The seller must pack the product. provide export license and go through export formalities at their own expense including transporting goods through any country before delivery at the seller’s risk and expense.

The seller shall at his own expense contract for the carriage of goods to the specified terminal at the agreed port or at the specified place of destination. If there is no agreement or not defined in practice to the port of transport (Terminal) specific

The seller may choose a terminal at the agreed port or at the specified destination which he deems most appropriate. The goods must be unloaded from the arriving transport vehicle. The goods must then be delivered by placing them as agreed with the purchaser at the specified terminal on the date or within the agreed period.

The seller bears all risk of loss or damage of the goods. Until the goods have been delivered, the seller must pay all costs related to the goods until the goods have been delivered.

The seller is obliged to go through the export formalities at his own expense. including taxes and other burdens all to be paid when sending out as well as the cost for shipping through any country The cost of carrying out inspections (such as quality checks, measuring, weighing, counting) required to deliver goods. including any audit costs before the delivery of goods is determined by the competent authority of the exporting country But the seller is not obliged to make an insurance contract.

Buyer’s Responsibilities

The purchaser must pay the price as specified in the purchase contract. provide import license or other official authorizations and go through the import formalities at their own expense Goods must be delivered once the goods have been delivered. The buyer bears all risk of loss or damage of the goods from the time the goods have been delivered. But the buyer is not responsible for the contract of transportation. However, the buyer may enter into an insurance contract at his own expense.
The buyer must pay all costs related to the goods from the time the goods have been delivered, all taxes, duties and other charges.

DAP (Delivered at place)

The seller delivers the goods to the buyer at the agreed location. ready to be unloaded from the vehicle The seller is at the risk of damage to the goods and the cost of transportation until the buyer’s place. Including the duty to carry out the departure formalities but shall not be responsible for carrying out the entry formalities. and do not have to pay import duties This Agreement may apply in the case of more than one mode of transport.

Seller’s Responsibilities

The seller must deliver the goods to the consignee. on the date or within the agreed period The seller must contract insurance at his own expense. The seller must pay the costs of conducting audits (such as quality inspection, measuring, weighing, counting). export The seller must pack the product. provide export license and go through export formalities at their own expense including transporting goods through any country before delivery at the seller’s risk and expense. The seller must deliver the goods on the arriving means of transport. which is ready to be unloaded at the destination on or within the agreed period. In addition, the seller bears all risk of loss or damage of the Goods. until the goods have been delivered

Buyer’s Responsibilities

The purchaser must pay the price as specified in the purchase contract. provide import license or other official authorizations and go through import formalities at their own risk and expense. Any audit costs must be paid. before delivery Goods must be delivered once the goods have been delivered. The buyer bears all risk of loss or damage of the goods from the time the goods have been delivered. The buyer is not obligated to enter into a contract. arrange transportation

The buyer receives the goods from the vehicle. consignments arriving at the specified place of destination at the expense of all additional charges for unloading the goods from the carrier; Buyers may enter into an insurance contract at their own expense.

The buyer is obliged to pay all costs related to the goods from the time the goods have been delivered, all taxes, duties and other charges.

DDP (Delivered Duty Paid)

The seller is responsible for delivering the goods at the place specified by the buyer in the UK, and the seller bears all risks and expenses in connection with the transportation of the goods to the place of destination. The seller is responsible for the departure and arrival procedures. including paying taxes and other fees related to the delivery of such goods to the place of destination This Agreement may apply in the case of more than one mode of transport.

Seller’s Responsibilities

The seller must prepare the product. invoice and any other evidence stipulated in the contract. by delivering it on the transport vehicle that arrives ready to be unloaded at the agreed point at the specified destination. on the date or within the agreed period The seller must contract insurance at his own expense.
The seller must pay the costs of conducting the audit (such as quality inspection, measuring, weighing, counting). It is set to be operated by the competent authorities of the exporting and importing countries. The seller must pack the product. and pay the cost of export and import formalities including taxes and all other charges payable upon export and import. In addition, the seller bears all risk of loss or damage of the goods. until the goods have been delivered

Buyer’s Responsibilities

The purchaser must pay the price as specified in the purchase contract. bear all risk of loss or damage of the goods from the time the goods have been delivered and must pay all costs related to the goods from the time the goods have been delivered. All additional charges for unloading the cargo for pick-up from the consignment arriving at the specified destination.
The buyer must accept the delivery of the goods once the goods have been delivered. Buyer is not obliged to contract for transportation arrangements. and insurance contracts
The purchaser is not responsible for the costs of the inspections which are required to be carried out by the Authorized agencies of exporting countries and importing countries