24 March 2004INCOTERMS 2000 - Søren Theilgaard1 INCOTERMS 2000 - In context ICC Iceland Legal...

1INCOTERMS 2000 - Søren Theilgaard24 March 2004

INCOTERMS 2000 - In contextINCOTERMS 2000 - In contextINCOTERMS 2000 - In contextINCOTERMS 2000 - In context

ICC IcelandICC Iceland

Legal Director Søren TheilgaardLegal Director Søren Theilgaard

24 March 2004 INCOTERMS 2000 - Søren Theilgaard 2

INCOTERMS 2000INCOTERMS 2000INCOTERMS 2000INCOTERMS 2000

Welcome and IntroductionWelcome and Introduction 55

Presentation of INCOTERMSPresentation of INCOTERMS 2525

INCOTERMS and Contract of CarriageINCOTERMS and Contract of Carriage 2020

INCOTERMS, Delivery and PaymentINCOTERMS, Delivery and Payment 2020

INCOTERMS and InsuranceINCOTERMS and Insurance 1515

Problem areas in INCOTERMS 2000Problem areas in INCOTERMS 2000 6060

Questions and AnswersQuestions and Answers 1010

ClosingClosing


PRESENTATION OF INCOTERMSPRESENTATION OF INCOTERMSPRESENTATION OF INCOTERMSPRESENTATION OF INCOTERMS

Supplement to Sale-Purchase Agreement

Record of international customs and usage

1. version 1936. Updates 1953 - 1980 - 1990

What is new in INCOTERMS 2000

History - What is INCOTERMSHistory - What is INCOTERMS

No obligation - Where applicableNo obligation - Where applicable

13 Clauses and 4 categories13 Clauses and 4 categories

10 obligations10 obligations

Variants of INCOTERMSVariants of INCOTERMS


INCOTERMS 2000INCOTERMS 2000

What is new ?What is new ?



EXPORT / IMPORT CLEARANCE IN ONES OWN EXPORT / IMPORT CLEARANCE IN ONES OWN

COUNTRYCOUNTRY

- NOW ALSO FAS OG DEQ

LOADING ON AND UNLOADING FROM VEHICLELOADING ON AND UNLOADING FROM VEHICLE

- FCA: At Seller’s premises Seller must load

At terminal carrier must unload

- DAF:

- DDU: Goods arriving at destination without

- DDP: being unloaded from vehicle






FCA - CLAUSE HAS BEEN SIMPLIFIED AGAINFCA - CLAUSE HAS BEEN SIMPLIFIED AGAIN

- No distinction between different means of

transportation, full container load or consolidated

goods

GREATER CONSISTENCY IN TERMINOLOGYGREATER CONSISTENCY IN TERMINOLOGY

More places indicate: NO OBLIGATIONMore places indicate: NO OBLIGATION



What is newWhat is new ? ?


What is newWhat is new ? ?

EXPORT / IMPORT CLEARANCE:EXPORT / IMPORT CLEARANCE:

- Only WHERE REQUIRED

CFR/CIF A8 - CHARTER PARTIESCFR/CIF A8 - CHARTER PARTIES

- Unlike Incoterms 1990 no requirement that the

Charter Party must be presented when transport document

refers to the Charter Party



44 CATEGORIESCATEGORIES

Group EGroup E Departure DepartureEXWEXW

Group FGroup F Main carriage unpaid Main carriage unpaidFCAFCA - - FASFAS - - FOBFOB

Group CGroup C Main carriage paid Main carriage paidCFRCFR - - CIFCIF - - CPTCPT - - CIPCIP

Group DGroup D Arrival ArrivalDAF - DAF - DESDES - - DEQDEQ - - DDUDDU - DDP - DDP

< 1953< 1953 19671967 19801980 19901990



MODE OF TRANSPORT AND THE APPROPRIATE MODE OF TRANSPORT AND THE APPROPRIATE INCOTERM 2000 INCOTERM 2000 Any mode of transportAny mode of transport

Group EGroup E EXWEXW

Group FGroup F FCAFCA

Group CGroup C CPTCPT - CIP - CIP

Group DGroup D DAFDAF - DDU - DDP - DDU - DDP



MODE OF TRANSPORT AND THE APPROPRIATE MODE OF TRANSPORT AND THE APPROPRIATE INCOTERM 2000INCOTERM 2000

Maritime transport onlyMaritime transport only

Group FGroup F FAS - FOBFAS - FOB

Group CGroup C CFR - CIFCFR - CIF

Group DGroup D DES - DEQDES - DEQ

- or in combination with a different mode of - or in combination with a different mode of transporttransport


10 MIRRORED OBLIGATIONS10 MIRRORED OBLIGATIONS10 MIRRORED OBLIGATIONS10 MIRRORED OBLIGATIONS

1)1) PROVIDE GOODS - PAYMENT OF PRICEPROVIDE GOODS - PAYMENT OF PRICE

2) 2) LICENSES, AUTHORIZATIONS AND FORMALITIESLICENSES, AUTHORIZATIONS AND FORMALITIES

3)3) CONTRACT OF CARRIAGE AND INSURANCECONTRACT OF CARRIAGE AND INSURANCE

4) 4) DELIVERY - TAKING DELIVERYDELIVERY - TAKING DELIVERY

5)5) TRANSFER OF RISKSTRANSFER OF RISKS

6)6) DIVISION OF COSTSDIVISION OF COSTS

7)7) NOTICE TO BUYER AND SELLERNOTICE TO BUYER AND SELLER

8)8) PROOF OF DELIVERY, TRANSPORT DOCUMENT OR PROOF OF DELIVERY, TRANSPORT DOCUMENT OR

EQUIVALENT ELECTRONIC MESSAGE - EDIEQUIVALENT ELECTRONIC MESSAGE - EDI

9)9) INSPECTION OF GOODS, PACKAGING AND MARKING INSPECTION OF GOODS, PACKAGING AND MARKING

10)10) OTHER OBLIGATIONSOTHER OBLIGATIONS



Welcome and IntroductionWelcome and Introduction Presentation of INCOTERMSPresentation of INCOTERMS INCOTERMS and Contract of CarriageINCOTERMS and Contract of Carriage INCOTERMS, Delivery and PaymentINCOTERMS, Delivery and Payment INCOTERMS and InsuranceINCOTERMS and Insurance Problem areas in INCOTERMS 2000Problem areas in INCOTERMS 2000 Questions and AnswersQuestions and Answers ClosingClosing


CONTRACT OF CARRIAGECONTRACT OF CARRIAGE

Rules regulating international transportation:Rules regulating international transportation: Road - CMR Geneva Convention 1956Road - CMR Geneva Convention 1956

Rail - COTIF Berne Convention + CIMRail - COTIF Berne Convention + CIM

Air - Warszaw and Montreal Convention)Air - Warszaw and Montreal Convention)

Marine - Merchant Shipping Act Marine - Merchant Shipping Act Carriage of Goods by Sea (Haag-Visby Carriage of Goods by Sea (Haag-Visby and Hamburg Rules) and Hamburg Rules)

Freight Forwarder - NSAB 2000Freight Forwarder - NSAB 2000


CARRIER’S LIABILITY CARRIER’S LIABILITY CARRIER’S LIABILITY CARRIER’S LIABILITY

LiabilityLiability Road:Road: ControlControl

Rail:Rail: Act of GodAct of God

Air Way:Air Way: Act of God Act of God

delay delay - Burden of proof- Burden of proof

Marine:Marine: Negligence - reverse burden of Negligence - reverse burden of proofproof

Freight Forwarder:Freight Forwarder: ControlControl



Limit to liabilityLimit to liability Road:Road: 8,33 SDR pr. kilo8,33 SDR pr. kilo

Rail:Rail: 17 SDR pr. kilo17 SDR pr. kilo

Air Way:Air Way: 17 SDR pr. kilo17 SDR pr. kilo

Marine:Marine: 667 SDR pr. kollo667 SDR pr. kolloor 2 SDR pr. kiloor 2 SDR pr. kilo

Freight Forwarder:Freight Forwarder: 8,33 SDR pr. kilo 8,33 SDR pr. kilo

1 SDR = app. 1.20 EURO1 SDR = app. 1.20 EURO



Limit to loss in case of delayLimit to loss in case of delay Road:Road: freight freight

Rail:Rail: 3 x freight 3 x freight

Air Way:Air Way: 17 SDR pr. kilo17 SDR pr. kilo

Marine:Marine: 2½ x freight 2½ x freight

Freight Forwarder:Freight Forwarder: freight freight


INCOTERMS INCOTERMS

and CONTRACT OF CARRIAGEand CONTRACT OF CARRIAGE

CARRIERCARRIER

Receives Goods from SellerReceives Goods from Seller

Issues Transport DocumentIssues Transport Document

Responsible for the Goods during Responsible for the Goods during

transportation transportation

Hands over Goods to Consignee / Hands over Goods to Consignee /

Purchaser Purchaser


CONTRACT OF CARRIAGE CONTRACT OF CARRIAGE

3 Functions3 Functions

Receipt for the Goods

Contract for carriage of the goods

Authority to hand over the goods

Freight receipt - Sea Waybill / Non negotiableFreight receipt - Sea Waybill / Non negotiable

Bill of LadingBill of Lading

CharterpartyCharterparty


CONTRACT OF CARRIAGE CONTRACT OF CARRIAGE

In accordance with Sales ContractIn accordance with Sales Contract

Division of costs

Risk - Interest

Liner Terms or Tramp Terms

Cargo InsuranceCargo Insurance

Basis for payment through Documentary CreditBasis for payment through Documentary Credit

Contracting or performing carrierContracting or performing carrier


COSTS COSTS COSTS COSTS

In accordance with Sales ContractIn accordance with Sales Contract

INCOTERMS Item A.6 and B.6.INCOTERMS Item A.6 and B.6. Passing upon delivery exemption: C-Clauses

In accordance with Contract of CarriageIn accordance with Contract of Carriage

In particular loading costs

Transit costs

Terminal Handling Costs


DELIVERYDELIVERYDELIVERYDELIVERY

What is deliveryWhat is delivery

Consequences of deliveryConsequences of delivery

What happens is delivery does not occurWhat happens is delivery does not occurpassing of risk - A5 / B5costs - A6 / B6

Where does delivery occur - INCOTERMS A4Where does delivery occur - INCOTERMS A4

Choice of INCOTERM Clause has an impact on delivery, Choice of INCOTERM Clause has an impact on delivery,

passing of risk and costspassing of risk and costs


DELIVERYDELIVERYDELIVERYDELIVERY

EXWDES - D

EQ

DAF

||| |

FAS - FOB

CFR - CIF

|

DDU

|

DDP

|

FCA - CPT - C

IP

Marine transportMarine transport

DepartureDeparture ArrivalArrival

Seller’splace

Buyer’splace

BorderBorderCarrierCarrier


PAYMENTPAYMENTPAYMENTPAYMENT

WHEN MUST PAYMENT BE MADEWHEN MUST PAYMENT BE MADE

WHERE MUST PAYMENT BE MADEWHERE MUST PAYMENT BE MADE

PAYMENT IF GOODS ARE NOT RECEIVEDPAYMENT IF GOODS ARE NOT RECEIVED

INSURANCE MAY REPLACE PAYMENTINSURANCE MAY REPLACE PAYMENT Cargo Insurance Credit Insurance Documentary Credit

WHEN MUST PAYMENT BE MADEWHEN MUST PAYMENT BE MADE

WHERE MUST PAYMENT BE MADEWHERE MUST PAYMENT BE MADE

PAYMENT IF GOODS ARE NOT RECEIVEDPAYMENT IF GOODS ARE NOT RECEIVED

INSURANCE MAY REPLACE PAYMENTINSURANCE MAY REPLACE PAYMENT Cargo Insurance Credit Insurance Documentary Credit



When must payment be made ?When must payment be made ? CISG Art. 58CISG Art. 58

(1) If the buyer is not bound to pay the price at any other specific time he must pay it when the seller places either the goods or documents controlling their disposition at the buyer's disposal in accordance with the contract and this Convention. The seller may make such payment a condition for handing over the goods or documents.

- Cf. however CISG Art. 57 (1) - Payment when - Cf. however CISG Art. 57 (1) - Payment when documents are handed over to buyer.documents are handed over to buyer.



When must payment be made ?When must payment be made ? CISG Art. 58CISG Art. 58

(2) If the contract involves carriage of the goods, the seller may dispatch the goods on terms whereby the goods, or documents controlling their disposition, will not be handed over to the buyer except against payment of the price.

(3) The buyer is not bound to pay the price until he has had an opportunity to examine the goods, unless the procedures for delivery or payment agreed upon by the parties are inconsistent with his having such an opportunity.

- E.g. Cash against Documents or FOB / CIF INCOTERMS 2000- E.g. Cash against Documents or FOB / CIF INCOTERMS 2000



Where must payment be made ?Where must payment be made ? CISG Art. 57CISG Art. 57

(1) If the buyer is not bound to pay the price at any other particular place, he must pay it to the seller:

(a) at the seller's place of business; or

(b) if the payment is to be made against the handing over of the goods or of documents, at the place where the handing over takes place..

Payment against documentsPayment against documents- Where and when documents are presented ..


CISG LANDECISG LANDE

CISG landeCISG lande

Ikke CISG landeIkke CISG lande


PAYMENT AGAINST DOCUMENTSPAYMENT AGAINST DOCUMENTSPAYMENT AGAINST DOCUMENTSPAYMENT AGAINST DOCUMENTS

Which documents Which documents

Certainty that agreed documents are preparedCertainty that agreed documents are prepared

Payment before Delivery / Passing of RiskPayment before Delivery / Passing of Risk

Seller’s comfortSeller’s comfort

Buyer’s comfortBuyer’s comfort

No guarantee that payment is made / only retention rightNo guarantee that payment is made / only retention right

Which documents Which documents

Certainty that agreed documents are preparedCertainty that agreed documents are prepared

Payment before Delivery / Passing of RiskPayment before Delivery / Passing of Risk

Seller’s comfortSeller’s comfort

Buyer’s comfortBuyer’s comfort

No guarantee that payment is made / only retention rightNo guarantee that payment is made / only retention right


LETTER OF CREDITLETTER OF CREDITLETTER OF CREDITLETTER OF CREDIT

Agreement on payment guarantee and terms of Agreement on payment guarantee and terms of

paymentpayment

Agreement between buyer and issuing bankAgreement between buyer and issuing bank

Honouring bank - Confirmed L/CHonouring bank - Confirmed L/C

Satisfying Documentary Credit conditionsSatisfying Documentary Credit conditions

L/C Rules between banks / ICC 500L/C Rules between banks / ICC 500

Agreement on payment guarantee and terms of Agreement on payment guarantee and terms of

paymentpayment

Agreement between buyer and issuing bankAgreement between buyer and issuing bank

Honouring bank - Confirmed L/CHonouring bank - Confirmed L/C

Satisfying Documentary Credit conditionsSatisfying Documentary Credit conditions

L/C Rules between banks / ICC 500L/C Rules between banks / ICC 500


INCOTERMS and INSURANCEINCOTERMS and INSURANCEINCOTERMS and INSURANCEINCOTERMS and INSURANCE

Insurance for own interest / Who is at risk ?Insurance for own interest / Who is at risk ?

Seller insuring buyer’s riskSeller insuring buyer’s risk

CIF / CIP:CIF / CIP: from delivery to destinationcontract price + 10%

minimum conditions

direct claim against insurance company

Additional insurance required Additional insurance required theft, jettison, water damage, strikes, wartheft, jettison, water damage, strikes, warhigher insurance sum, redestination, higher insurance sum, redestination, subsequent transportation, sale in transit subsequent transportation, sale in transit



Institute Cargo Clauses CInstitute Cargo Clauses C

Covers named eventsCovers named events

Institute Cargo Clauses AInstitute Cargo Clauses A

All risk insurance exceptAll risk insurance except

- strikes, war, inherent vice, deficiency in packaging, ordinary leakage, delay

Certain events are not insurableCertain events are not insurable

Who carries the risk for the goods ?Who carries the risk for the goods ?



Insurance InterestInsurance Interest

Who carries the risk for the goods ?Who carries the risk for the goods ?

Insurance of subsequent interestInsurance of subsequent interest

Sale of goods in transitSale of goods in transit

Claim against insurerClaim against insurer

Who carries insurance interestWho carries insurance interest

Assignment of insurance interestAssignment of insurance interest

Recourse against carrierRecourse against carrier



Problem AreasProblem Areas

Frequently Asked QuestionsFrequently Asked Questions



FAQFAQ

Delivery upon loading on / unloading from carrier’s vehicle.Delivery upon loading on / unloading from carrier’s vehicle.

- must loading/unloading be completed for delivery to happen ?- must loading/unloading be completed for delivery to happen ?

- who pays the cost and carries risk of loading / unloading ?- who pays the cost and carries risk of loading / unloading ?

EXW - Not loaded on collecting vehicle arrival

FCA - Loaded on vehicle at Seller’s place, but not unloaded at carrier’s

place

DAF - not unloaded at border

DDU/

DDP - not unloaded at place of destination

NB difference between FCA and FAS:NB difference between FCA and FAS:

FAS - Delivery only when goods are placed on quay alongside

vessel



FAQFAQ

When delivery is effected without loading (EXW) or unloading When delivery is effected without loading (EXW) or unloading

(FCA), what is the legal effect of Seller assists Buyer to do so ?(FCA), what is the legal effect of Seller assists Buyer to do so ?

- Reimbursement of costs ?

- Risk ?

- Is delivery postponed until loading / unloading is completed ?

Similarly in DAF, DDU and DDP when carrier assists in unloading.

What is the meaning of EXW loaded / FCA unloaded ?What is the meaning of EXW loaded / FCA unloaded ?

- Does not intend to change the passing of risk



FAQFAQ

FCA - Delivery when carrier arrives at Seller’s place with a FCA - Delivery when carrier arrives at Seller’s place with a

container instead of a truck. Is Seller obliged to stowe goods container instead of a truck. Is Seller obliged to stowe goods

in container ?in container ?

Yes, if carrier so requests and it is not unusual (cf. Seller

must load on carrier’s collecting vehicle)

Does Seller not wish to assume that obligation he should

have contracted EXW.



FAQFAQ

Terminal Handling Charges - FCATerminal Handling Charges - FCA Export clearance - Seller’s cost

Cost of carriage, Warehouse storage after buyer’s receipt of goods

- Buyer’s cost

Wharfage and Airport charges - Not export taxes that Seller must

pay. Depends on whether charge is triggered before or after

delivery.

Air transport security fee - similar

- Possible clause- Possible clause THC for Seller’s expense

Customs and practice between parties may shift THC



FAQFAQ Terminal Handling Charges - FOBTerminal Handling Charges - FOB

Seller’s cost until delivery when goods pass ship’s rail

Similarly according to FAS until ”alongside ship” (on quay or in

barge)

If Seller wishes to avoid costs in port of shipment he must choose

FCA

Costs relating to marine transportation, including quay charges and

transshipment in subsequent port must always be paid by Buyer.

Terminal Handling Charges for container loadTerminal Handling Charges for container load Seller has effectively done what he is supposed to do when

container has been loaded, whereas delivery and division of costs

and risk does not occur until goods pass ship’s rail.

- Not appropriate - Choose FCA instead.



FAQFAQ

FOB - What is ship’s rail ?FOB - What is ship’s rail ?

Shall be understood literally - subject to interpretation

FOB - Passing of Risk in case of transshipmentFOB - Passing of Risk in case of transshipment

FOB Helsingborg, transshipment to Ocean Vessel in Hamburg.

Delivery and Passing of Risk at Helsingborg.

FOB - Pre Transportation ?FOB - Pre Transportation ?

FOB Helsingborg. Truck to Hamburg.

- Wrong use of FOB Incoterms.

FOB Airport destination Japan ?FOB Airport destination Japan ?

Air forwarder receives goods at Danish airport, carries goods

to Frankfurt. Accident on the road. Who carries risk ?

- Not an approved Incoterms.



FAQFAQ

FOB - Does Seller have the obligation to ensure thatFOB - Does Seller have the obligation to ensure that

Goods are Stowed / Trimmed ?Goods are Stowed / Trimmed ? Only where agreed to - (Handling after delivery)

FOB Rotterdam Incoterms 2000 Stowed and Trimmed is

merely a cost clause and does not change delivery or

passing of risk.



FAQFAQ

Place of Delivery ?Place of Delivery ?

Seller’s place or when Seller is handing over the goods:

At Seller’s: EXW At Carrier’s: FCA, FAS, FOB, CFR, CIF, CPT, CIP

Buyer’s place or Buyer’s carrier:

Port of

Destination: DES, DEQ At Border: DAF At Buyer’s: DDU, DDP

Specifying point at the named place of delivery ?Specifying point at the named place of delivery ?

Seller’s interest. We pays costs and carries risk until that

point. - Right to elect point within named place.



FAQFAQ

Place of delivery in EXW-ClausePlace of delivery in EXW-Clause

EXW agreed, but Seller contracts on behalf of Buyer for transportation

and insurance and invoices EXW-price + freight and insurance. Invoice

reads: CIF Port of destination. Freight and insurance prepaid.

Are the two Clauses identical ?

- Cost and freight ?

- Risk ?

EXW Amsterdam, to be shipped to Buyer’s address Sacramento CA

arrival 20 April 2004.

Where does delivery take place ?

- Cost / Risk ?

- Delay ?



FAQFAQ

Place of delivery in C-ClausesPlace of delivery in C-Clauses

CIP Johannesburg by air from Frankfurt. Goods are lost after storage

with Air Carrier in Johannesburg before handed over to buyer.

Where must the goods be delivered ?

- Johannesburg Airport ?

- At Buyer’s in Johannesburg area ? (Choice of destination) Who carries risk for the loss in Johannesburg ? Where does delivery take place ?

CIP Durban (SA) or DDU Durban (SA).

Costs until place of destination ?

- Buyer pays transit costs and possible unloading costs

according to CIP ?

Place of delivery and passing of risk ?



FAQFAQ

Place of delivery in D-ClausesPlace of delivery in D-Clauses

DDU Buyer’s place by air from New York to Paris. Buyer has 3

different places of business in France, which is reported to Seller only

after contract is executed.

Where must goods be handed over ?

- Paris Airport ?

- With Buyer in France, 1 point or 3 different points ?

- Costs by delivering 3 places instead of 1 ? Who carries risk of goods being lost in Paris ? Where does delivery take place ?

DDP Hong Kong by Air.

Delivery at air carrier’s warehouse or at buyer’s ? (Choice of

place of delivery)



FAQFAQ

Eksport ClearanceEksport Clearance Seller, except in EXW

Import ClearanceImport Clearance Buyer, except in DDP

Transit ClearanceTransit Clearance Seller until delivery, thereafter Buyer.

Costs in transit, including permissions in C-Clauses must also

be paid by Buyer, cf. Item B6, 2.part.

- unless transit costs are included in the cost of carriage that

Seller shall pay.



FAQFAQ

Passing of Property in Scandinavian LawPassing of Property in Scandinavian Law Protection against Seller’s creditors when contract has been

made and the goods have been duly appropriated to buyer.

- Swedish Law: - goods have arrived in Buyer’s possession

Protection against Buyer’s creditor when goods have arrived

in Buyer’s possession

Not important whether or not goods have been delivered or

who carries the risk.

Not settled in INCOTERMSNot settled in INCOTERMS

Other jurisdictions may view this issue differentlyOther jurisdictions may view this issue differently Matter of contract.

Subject to bankruptcy rules.



FAQFAQ

CFR - Loading- and unloading costsCFR - Loading- and unloading costs

Seller pays loading costs.

Unloading costs ? - see B6, 3.part

costs of loading, including lighterage and wharfage

charges, unless such costs and charges were for the

Seller’s account under the contract of carriage;

”Liner Terms” imply that the vessel takes care of both loading

and unloading and is reimbursed therefore as part of the cost

of carriage.

”Tramp Terms” or specific agreement of ”free in/free out”

implies that the carrier does not take care of loading and/or

unloading as part of the cost of carriage, e.g.

- Seller pays for loading

- Buyer pays for unloading



FAQFAQ

Unloading costs in D-ClausesUnloading costs in D-Clauses

DAF, DDU and DDP Buyer pays unloading

costs at destination

DES Buyer pays unloading costs

DEQ Seller pays unloading costs

(Seller pays transit costs until this place)



FAQFAQ

WharfageWharfage

The charges paid to the port by the vessel for berthing and laytime at

quay. Port of departure

- FAS and FOB Buyer- CFR, CIF, DES and DEQ Seller- FCA transport by sea Buyer- Other C- and D-Clauses by sea Seller until named place

Port of destination- FAS and FOB Buyer- CFR, CIF Seller, if wharfage is part of the cost of carriage, otherwise Buyer - DES og DEQ Seller- FCA transport by sea Buyer- Other C- and D-Clauses by sea Seller until named place



FAQFAQ

CIF - What is the meaning of CIF-Landed ?CIF - What is the meaning of CIF-Landed ?

Not an authentic Incoterms Clause.

May imply that Seller must contract vessel on Liner Terms.

May imply that the parties intended to contract according to the

DEQ Clause.

CIF - Duties and taxes (except export)CIF - Duties and taxes (except export) Buyer’s costs since they are not part of the cost of carriage.

CIP - Named place Dallas, delivery CopenhagenCIP - Named place Dallas, delivery Copenhagen Sea transport to Houston, unloading and transshipment to haulage

by vehicle to Dallas.

- Irrespective how contract is made with Carrier Seller must

pay unloading costs since this part of the costs accrue before

named place (Dallas).



FAQFAQ

CFR - Delivery and contract of carriageCFR - Delivery and contract of carriage

- CFR Rotterdam, shipment from New York. Seller instructs carrier to

unload at Le Havre to haul goods by land to Rotterdam.

Is carrier entitled to change place of discharge ?

What happens if goods do not arrive on time in Rotterdam.

Additional costs by transshipment at Le Havre and land transport.

Risk of damage during land transportation.

CFR - Risk attached to the goods ?CFR - Risk attached to the goods ? Buyer claims that goods are not according to contract by arrival but

transport documents have no note that this should be the case upon

delivery.

- Clam against Seller or Carrier ?

- Cashing documents (Documentary Credit)



FAQFAQ CIF - Damage during transportationCIF - Damage during transportation

Covered by insurance. Seller delivers again for own account and

reports damage to insurance company.

Carrier responsible for the damage.

- Insurance claim

- Insurance company recourse

- Carrier responsibility

Relationship between Seller and Buyer

- Insurance control

CIF - Defect before passing of risk - Buyer rescinds contractCIF - Defect before passing of risk - Buyer rescinds contract Purchase price already paid ? (Documentary Credit)

Who ”owns” the goods ?

Who must tend to the goods ? Return / Auction Sale



FAQFAQ

DDU - CostsDDU - Costs

Seller pays” all costs relating to the goods until such time as they have been delivered in

accordance with A4; and

costs of customs formalities necessary for export as well as all duties, taxes and

other charges payable upon export and for their transit through any country prior

to delivery in accordance with A4.”

Health certificate in port of destination ? Seller pays until delivery. Wharfage ? Seller Returning Seller’s packing material (pallets, container) - Buyer must pay

his own costs to empty pallets / container

Buyer pays

”costs of customs formalities as well as all duties, taxes and other charges

payable upon import of the goods.”


SLUT

24 March 2004INCOTERMS 2000 - Søren Theilgaard1 INCOTERMS 2000 - In context ICC Iceland Legal...

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Transcript of 24 March 2004INCOTERMS 2000 - Søren Theilgaard1 INCOTERMS 2000 - In context ICC Iceland Legal...