155932International Trade Agreements (Incoterms 2020)

155932

International Trade Agreements (Incoterms 2020)

Incoterm 2020 has been adjusted to match the current world trade conditions. There are still 11 terms.

EXW (Ex works) FCA (Free Carrier) CPT(Carriage Paid To) CIP (Carriage and insurance Paid To) DAP (Delivered at Place ) DPU (Delivered at Place Unload) DDP (Delivered DutyPaid) FAS(Free Alongside Ship) FOB( Free on Board) CFR (Cost and Freight) CIF (Cost Insurance and Freight )

Incoterms 2020 is a major change from Incoterms 2010.

1. The term DAT (Delivered at Terminal) of Incoterms 2010 switched to the DAP term of Incoterms 2020 and the term DAT of Incoterms 2010 changed and renamed to DPU of Incoterms 2020 because in the past, the seller and the buyer wished to have the delivery. Give and receive goods together at a location other than specified at the destination station to be more flexible

2. In the contract of sale, the FCA term requires the seller to load goods up or down in the vehicle supplied by the buyer. in the case of not being directly loaded onto a large ship Must be loaded onto a car or onto a pontoon boat to take another large ship. In the case of payment by L/C which the bank requires to bring B/L to show, so will pay according to L/C to the seller. There was a problem with the shipping line. B/L will not be issued until the goods are loaded in the car or pontoon boat. will be loaded onto a large ship

To solve the aforementioned problems, according to Incoterms 2020, in the term FCA has opened a channel for The parties can agree on the purchase contract. Designate the buyer who supplies the boat. There must be a requirement for the shipping line to issue B/L and shipping documents to the seller in the above cases.

3. Higher level of insurance coverage

In trading, the CIF term and the CIP term are the seller’s responsibility to insure the goods in transit to the buyer. According to Incoterms 2010, the insurance contract may cover any phase of the carriage. But according to Incoterms2020, the seller must purchase comprehensive insurance. higher than before

1. EXW: Ex Work

Delivery Point: The seller places the goods for the buyer to pick up at the specified location. without having to carry the goods onto the receiving vehicle.
Risk Point: The buyer assumes the risk of Loss or damage upon delivery of the product.
Cost Point: Buyer pays all costs. Ants related to goods since The time the goods have been delivered

Customs Clearance Point: The buyer goes through the clearance. Export/Border/ Inbound (Seller provides documentation and information for export)

2. FCA: Free Carriage

Delivery Point: The seller delivers the goods on the vehicle. of the carrier supplied by the purchaser to pick up at the specified location.
Risk Point: The Buyer assumes the risk of lost or damaged goods Upon delivery of the item,
Cost Point: Buyer pays all costs. Ants about the product from the moment

Customs Clearance Point: The seller goes through the export clearance, the buyer goes through the import / export clearance (the seller provides documentation and assistance). information for border crossing/ importing)

3. CPT: Carriage Paid To

Delivery Point: Buyer accepts delivery of goods from the buyer. when the seller delivers it. The goods are delivered to the carrier at the specified point. The buyer receives the goods from the carrier at the specified destination.
Risk Point: The buyer bears the risk of lost or damaged goods when the seller delivers the goods To the transport manager who sells. Hiring
Cost Point: The seller pays all expenses. about the product from the time where the goods have been delivered
Customs Clearance Point: The seller goes through the outbound clearance, the buyer goes through the clearance. border/inbound

4. CIP: Carriage and Insurance Paid To

Delivery Point: The buyer receives the goods from the buyer. when the seller delivers the goods to the carrier at the specified point.
The buyer receives the goods from the carrier at the specified destination.
Risk Point: The buyer assumes all risks. of goods upon delivery of goods.
Cost Point: Seller pays all costs. related to the product until to the place where the destination is delivered specified under the contract of carriage. The seller must have an insurance contract. against the risk and pay the bills Protection for buyers from the delivery point Bake the goods to the manager transport hired by the seller To the specified destination
Customs Clearance Point: The seller goes through the outbound clearance, the buyer goes through the clearance.border/inbound

5. DAP: Delivered at Place

Delivery Point: The seller delivers the goods on the vehicle. The shipper is ready to unload the goods at the specified destination.
Risk Point: The buyer assumes all risks. of goods upon delivery of goods.
Cost Point: Seller pays all costs. related to the product until to the place where the destination is delivered

Customs Clearance Point: The seller is the seller to complete the clearance. leaving and crossing the border The buyer is the one who goes through the import formalities.

6. DPU: Delivered at Place Unloaded

Delivery Point: The seller must unload the goods onto the Arrival vehicle and deliver the goods by placing them The buyer shall collect himself at the specified destination.
Risk Point: The seller assumes all risks. To carry the goods to and unload at the specified destination.
Cost Point: The seller pays all costs. related to the product until to the place of delivery of the specified destination under the contract of carriage.
Customs Clearance Point: leaving and crossing the border The buyer is the one who goes through the import formalities.

7. DDP: Delivered Duty Paid

Delivery Point: The seller delivers the goods on the vehicle. Shippers arriving ready to unload the goods at the agreed point at the specified destination.
Risk Point: The seller assumes all risks. For the goods to be transported to and unloaded at the specified destination.
Cost Point: The seller pays all costs. related to the product and delivery until the product reaches the location at the delivery destination specified Under the contract of carriage,
Customs Clearance Point: The seller clears the leg. out/cross border/inbound

8. FAS: Free Alongside Ship

Delivery Point: Seller delivers goods by drop. Place the goods on the side of the Buyer’s ship at the indicated port of origin.
Risk Point: The Buyer assumes all risks. of goods upon delivery of goods.
Cost Point: Buyer pays all costs. Ants related to goods since The time the goods have been delivered

Customs Clearance Point: The seller goes through the outbound clearance, the buyer goes through the clearance. border/inbound

9. FOB: Free on Board

Delivery Point: Seller delivers goods by drop. Place the goods on the Buyer’s ship at the indicated port of origin.
Risk Point: The Buyer assumes all risks. of goods upon delivery of goods.
Cost Point: Buyer pays all costs. Ants related to goods since The time the goods have been delivered

Customs Clearance Point: The seller goes through the clearance. Issue the buyer as a person who has passed the formalities. border/inbound

10. CFR: Cost and Freight

Delivery Point: The buyer receives the goods when the buyer sold to be placed on the ship at the specified port of departure and received from the carrier at the specified port of destination.
Risk Point: The buyer assumes all risks. of goods upon delivery of goods.
Cost Point: Seller pays all costs. until the product has been delivered
The seller must contract the freight. water and pay freight and expenses other payments from the delivery point to the

Customs Clearance Point: The seller goes through the outbound clearance, the buyer goes through the clearance. border/inbound

11. CIF: Cost Insurance and Freight

Delivery Point: The buyer receives the goods when the goods are delivered. The merchant is placed on the ship at the specified port. and receive the goods from the carrier at the designated port of destination.
Risk Point: The buyer assumes all risks. Cost Point : Seller pays all costs . until the product is delivered. The seller must contract the freight. water and pay freight and expenses other payments from the delivery point to the to the agreed destination In addition, the seller must contract. Insurance and insurance payments from the port of departure to the port Vessels destination in Institute Cargo Clauses (C).

Customs Clearance Point: Seller goes through outbound clearance , buyer goes through clearance.

Incoterm Transfer of risk

EXW When the goods are at the disposal of the buyer
FCA When the goods have been delivered to the carrier at the named place
FAS When the goods have been placed alongside the ship
FOB When the goods are on board vessel, at the port of export (origin)
CFR When the goods are on board vessel, at the port of export (origin)
CIF When the goods are on board vessel, at the port of export (origin)
CIP When the goods have been delivered to the main carrier, at the port of export (origin)
CPT When the goods have been delivered to the main carrier, at the port of export (origin)
DAT When the goods once unloaded from the arrival means of transport and are placed at the disposal of the buyer at a named port or place of destination
DAP When the goods are placed at the disposal of the buyer on the arriving means of transport and ready for unloading at the named place of destination
DDP When goods are placed at the disposal of the buyer having been cleared for import and ready for unloading at the named place of destination.