99rev4 Incoterms 2010 3rd draft - CLEAN - 21 Jan 2010x · 106 “FCA (38 Cours Albert 1er, Paris,...

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CONFIDENTIAL DRAFT 1

2 3 4 5

ICC COMMISSION ON COMMERCIAL LAW AND PRACTICE 6 7 8 9

INCOTERMS 2010 10 11

3rd DRAFT 12 13

21 January 2010 14 15 16 17 18

This ICC working document is provided to you on 19

condition that its contents remain confidential. 20

Distribution is restricted to ICC National Committees and 21

Groups and to ICC members designated by ICC National 22

Committees. Reproduction and/or dissemination in any 23

form and by any means are strictly prohibited without the 24

prior written authorization of the ICC International 25

Secretariat. 26

27 28

CONFIDENTIAL DRAFT 29

30 31

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TABLE OF CONTENTS 32 33 INTRODUCTION 34 35 TERMS FOR ANY MODE OF TRANSPORT 36

37 EXW ….. ................................................................................................................................ 38

39 FCA.. ...................................................................................................................................... 40 41 CPT…..................................................................................................................................... 42

43 CIP…….................................................................................................................................. 44

45 DAP….................................................................................................................................... 46

47 DDP….................................................................................................................................... 48 49 MARITIME-ONLY TERMS 50

51 FAS…..................................................................................................................................... 52

53 FOB.. ...................................................................................................................................... 54 55 CFR…..................................................................................................................................... 56

57 CIF…...................................................................................................................................... 58 59 DEQ….................................................................................................................................... 60 61

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62 63

64 65

INTRODUCTION 66 67 Incoterms are trade terms reflecting business-to-business practice in contracts 68 for the sale of goods and describe mainly the tasks, costs and risks involved in 69 the delivery of goods from sellers to buyers. 70 71 How to use Incoterms 2010 72 73 In concluding contracts of sale, users are reminded: 74 75 1 That Incoterms do not apply automatically to their contracts of sale. 76

Where parties to a sale contract intend any of the Incoterms 2010 to 77 apply, they should make this clear in their contract, through such words 78 as, for example, “[the chosen Incoterm, followed by] Incoterms 2010”. 79 80

2 That Incoterms do not provide a complete set of contractual terms. 81 Thus, for example, while Incoterms do say which party to the sales 82 contract has the duty to make carriage or insurance arrangements, when 83 the seller delivers the goods to the buyer, and which costs each party is 84 responsible for, Incoterms say nothing about, price or ownership of the 85 goods, or about the consequences of a breach of contract. These matters 86 are normally dealt with through express terms in the contract of sale or in 87 the law governing that contract. Likewise, the parties should be aware that 88 mandatory local law may well override any aspect of the sales contract 89 including the chosen Incoterm. 90 91

3 To choose the appropriate particular Incoterm. 92 The chosen Incoterm needs to be appropriate to the goods, to the means of 93 their transport, and above all to whether the parties intend to put more 94 duties, for example the duty to organise carriage or insurance, on the 95 seller or on the buyer. The Guidance Notes to each Incoterm contain 96 information that is particularly helpful when making this choice. 97

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However, the information provided in the Guidance Notes does not form 98 part of the Incoterm chosen. 99

100 4 That the Incoterm chosen can work only if the parties name a place or 101

port, and will work best if the parties specify the place or port as 102 precisely as possible. 103 A good example of such precision would be: 104 105 “FCA (38 Cours Albert 1er, Paris, France) Incoterms 2010”. 106

107 The named place is the point of delivery, i.e. the point at which risk 108 passes to the buyer; but in the C-terms, the place named is the place to 109 which carriage is paid. Indications as to place or destination can helpfully 110 be further specified by stating a precise point in that place or destination 111 in order to avoid doubt or argument. 112

113 114 Main differences between Incoterms 2000 and 2010 115 116

1 A new Incoterm - DAP 117 118

Incoterms have been reduced from 13 different terms to 11. This has 119 been achieved by substituting a new term, DAP, Delivered at Place, 120 for DAF, DES and DDU. The DAP term is, like its predecessors, a 121 “delivered” term, with the seller bearing all the costs and risks 122 involved in bringing the goods to the named place. The term may be 123 used irrespective of the mode of transport used and can consequently 124 suit all situations in which DAF, DES and DDU were previously 125 employed. 126

127 2 Classification of the eleven Incoterms 128 129

The thirteen terms in Incoterms 2000 were classified under four 130 clusters by initial letter, i.e. EXW, the “F” terms”, the “C” terms and 131 the “D” terms. This classification reflected the level of the seller’s 132 responsibilities towards the buyer. FCA, or for domestic sales, EXW, 133

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imposes the least duties on the seller with delivery happening and risk 134 passing to the buyer at the earliest possible time. The “D” – or 135 “delivered” – terms, on the other hand, impose the most duties on the 136 seller, with delivery happening and risk passing to the buyer at the 137 latest possible time. That categorisation remains very important, 138 particularly when the parties decide which of the eleven Incoterms 139 2010 to use. 140 141 The eleven Incoterms in Incoterms 2010 are presented, however, in 142 two distinct classes. 143 144 The first class includes the six Incoterms that can be used irrespective 145 of the mode of transport used for the carriage of the goods and 146 irrespective of whether only one or more than one mode of transport is 147 used. The EXW, FCA, CPT, CIP, DAP and DDP terms belong to this 148 class. These terms can be used where there is no maritime transport at 149 all. It is important to remember, however, that these terms can be used 150 where a ship is used for part of the carriage, so long as the point at 151 which the seller delivers the goods, or the point to which the goods are 152 carried to the buyer, or both, is or are before the ship’s rail. 153 154 The second class is, indeed, comprised of the more traditional five 155 terms that are used where the goods are carried only by sea and/or 156 inland waterway. Here, the point of delivery and the place to which 157 the goods are carried to the buyer are both ports, hence the label 158 “Maritime-only” terms. The FAS, FOB, CFR, CIF and DEQ terms 159 belong to this class. 160 161

162 3 Domestic and International Trade Terms 163 164

Incoterms have traditionally been used in international sale contracts 165 where goods pass across a national border. In various areas of the 166 world, however, large trade blocs, like ASEAN and the Single 167 European Market, have made visible border formalities between 168 different countries less significant. Consequently, the by-line to 169

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Incoterms 2010 formally recognises that the terms are available for 170 application both to international and domestic sale contracts; as a 171 result, Incoterms 2010 make it clear in a number of places that the duty 172 to comply with export/import formalities that is are required only 173 where applicable. 174 175 Two developments have persuaded the ICC that a movement in this 176 direction is timely. Firstly, there is strong evidence that as a matter of 177 fact traders commonly use Incoterms for purely domestic contracts. 178 The second reason is the greater willingness in the United States of 179 America to use Incoterms in domestic trade rather than the former 180 Uniform Commercial Code shipment and delivery terms. 181 182

183 4 Guidance Notes 184 185

Each of the 2010 Incoterms contains a Guidance Note at the start of 186 the term. The Guidance Notes explain the fundamentals of each 187 Incoterm: when it should be used; when risk passes; how costs are 188 allocated between seller and buyer. The Guidance Notes are not part 189 of the actual rules in Incoterms: they are intended, however, to help the 190 user accurately and efficiently to steer the user towards the appropriate 191 Incoterm for a particular transaction. 192 193

194 5 Electronic communication 195 196

Previous versions of Incoterms have specified those documents that 197 could be replaced by EDI messages. Articles A1/B1 of Incoterms 198 2010, however, now give complete functional equivalence to 199 electronic means of communication so long as the parties agree or 200 where there is a custom. This formulation facilitates the evolution of 201 new electronic procedures through the lifetime of Incoterms 2010. 202 203

204 6 Insurance cover 205

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206 Incoterms 2010 is the first version of Incoterms since the revision of 207 the Institute Cargo Clauses and the new version of Incoterms takes 208 account of alterations made to those Clauses in the revision. Incoterms 209 2010 has also placed information duties relating to insurance in A3/B3, 210 the articles dealing with contracts of carriage and insurance, moving 211 them from the more generic articles A10/B10 under the more generic 212 heading “Other Obligations”. The language in A3/B3 relating to 213 insurance has also been altered with a view to clarifying the parties’ 214 obligations in this regard. 215

216 217 7 Security-related clearances and information required for such 218

clearances 219 220 There is now heightened concern about security in the movement of 221 goods, requiring verification that the goods do not pose a threat to life 222 or property for reasons other than their inherent nature. Therefore, 223 Incoterms 2010 has included duties to obtain or to render assistance in 224 obtaining security-related clearances, such as chain-of-custody 225 information, in articles A2/B2 and A10/B10 of various Incoterms. 226

227 228 8 Terminal handling charges 229 230

In the ‘C’ terms, the seller is bound to make arrangements for the 231 carriage of the goods to the agreed destination: the freight is paid by 232 the seller but is actually paid for by the buyer as freight costs are 233 normally included by the seller in the integrated price of the goods. 234 The carriage costs will sometimes include the costs of handling and 235 moving the goods within port or container terminal facilities and the 236 carrier or terminal operator may well charge these costs to the buyer 237 who receives the goods. In these circumstances, the buyer is 238 concerned, for example, to avoid paying for the same service twice, 239 once to the seller in the price and once independently to the carrier or 240

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the terminal operator. Incoterms 2010 seeks to avoid this happening 241 by clearly allocating such costs in A6/B6 of the relevant Incoterms. 242 243

9 String sales 244 245

In the sale of commodities, as opposed to the sale of manufactured 246 goods, cargo is frequently sold several times during transit “down a 247 string”. Where this happens, a seller in the middle of the string does 248 not “ship” the goods because these have already been shipped by the 249 first seller in the string. The seller in the middle of the string therefore 250 performs its obligations towards its buyer not by shipping the goods, 251 but by “procuring” goods shipped. With a view to encouraging the 252 use of Incoterms in such sales, Incoterms 2010 now includes the duty 253 of “procuring goods shipped” together with the duty to ship goods in 254 the relevant Incoterms. 255

256 257 Explanation of terms used 258 259

The seller’s and buyer’s obligations are presented, as they were in 260 Incoterms 2000, in mirror fashion, reflecting under the A terms the 261 sellers’ obligations and under the B terms the buyers’ obligations. It is 262 intended that the text of Incoterms 2010 be self-explanatory: however, 263 to assist users the following text sets out guidance as to the sense in 264 which selected terms are used throughout the document; 265

266 Carrie r: for the purposes of Incoterms 2010, the carrier is the party 267 with whom carriage is contracted. 268

269 Cleared for export: Compliance with all export formalities including 270 payment of any export duties. 271 272 Delivery: This concept has multiple meanings in trade law and 273 practice, but Incoterms 2010 uses it to denote the point where risk of 274 loss of or damage to the goods passes from the seller to buyer. 275 276

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Electronic record: A set of information constituted of one or more 277 electronic messages for the purpose of being functionally equivalent 278 with the corresponding paper document. 279

280 ‘Packaged’ and ‘stowed’: These phrases are used for various 281 different purposes: 282

283 1. the packaging of the goods to comply with any requirements under 284 the contract of sale. 285 2. the packaging of the goods so as that they are fit for transportation 286 3. the stowage of the packaged goods within a container or other 287 means of transport. 288

289 In Incoterms 2010 packaging means both the first and second of the 290 above. Incoterms 2010 do not deal with the parties’ obligations for 291 stowage within the containers and therefore where relevant the parties 292 should deal with this specifically within the sales contract. 293

294 295

Variants of Incoterms 296 297 Sometimes the parties want to alter an Incoterm. Incoterms 2010 do not prohibit 298 such alteration but there are dangers in so doing. In order to avoid any 299 unwelcome surprises, they would need to make the intended effect of such 300 alterations extremely clear in their contract. Thus, for example, if the allocation 301 of costs in incoterms 2010 is altered in the contract, the parties should also make 302 it clear whether they intend to vary the point at which the risk passes from seller 303 to buyer. 304 305 306

307 308

309 310

Formatted: Bullets and Numbering

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311 312 313 314 TERMS FOR ANY MODE OF TRANSPORT 315 316

EXW 11

317 EX WORKS 318 EXW (insert named place of delivery) Incoterms 2010 319 320 GUIDANCE NOTE 321 322 This term may be used irrespective of the mode of transport used, and may also 323 be used where more than one mode of transport is used. It is suitable for 324 domestic trade, while FCA is usually more appropriate for international trade. 325 “Ex Works” means that the seller delivers when it places the goods at the 326 disposal of the buyer at the seller’s premises or at another named place (i.e., 327 works, factory, warehouse, etc.). For the seller to deliver the goods, it does not 328 need to load the goods on any collecting vehicle; neither does it need to clear the 329 goods for export, where such clearance is applicable. 330 331 The parties are well advised to specify as clearly as possible the point within the 332 named place of delivery, as the costs and risks to that point are for the account 333 of the seller. The buyer has to bear all costs and risks involved in taking the 334 goods from the agreed point, if any, at the named place of delivery. 335 336 Ex Works represents the minimum obligation for the seller. The term should be 337 used with care as: 338 339 a) a buyer who buys from a seller on an Ex Works basis and then exports 340 the goods will be exposed as the seller only has an obligation to provide 341 assistance that the buyer may require to effect the export/import. The parties are 342 well advised not to use Ex Works if the buyer is unable directly or indirectly to 343 obtain export clearance, where applicable; 344 345 b) the seller is not responsible for loading the goods, even though in 346 practice it may be in a better position to load them, although at the buyer’s risk 347 and expense. In these cases, FCA, which obliges the seller to load the goods 348 when delivery takes places at the seller’s premises, is usually more appropriate; 349 and 350 351

EXW 12

c) the buyer has limited obligations to provide to the seller any 352 information regarding the export of the goods. The seller may need this 353 information for, e.g., taxation purposes. 354 355 356 A THE SELLER’S OBLIGATIONS 357 358 359 A1 360

General obligations of the seller 361 The seller must provide the goods and the commercial invoice in 362 conformity with the contract of sale and any other evidence of conformity 363 that may be required by the contract. 364 365 Any document referred to in A1 –A10 may be replaced by an equivalent 366 electronic record if agreed between the parties or customary. 367

368 369 A2 370

Licences, authorizations, security clearances and other formalities 371 Where applicable, the seller must render the buyer, at the latter’s request, 372 risk and expense, assistance in obtaining any export licence, or other 373 official authorization necessary for the export of the goods. 374 375 Where applicable, the seller must provide, at the buyer’s request, risk and 376 expense, information that the seller has and that is required for the security 377 clearance of the goods. 378

379 380 A3 381

Contracts of carriage and insurance 382 a) Contract of carriage 383 The seller owes no obligation to the buyer to make a contract of carriage. 384 385 b) Contract of insurance 386

EXW 13

The seller owes no obligation to the buyer to make a contract of insurance. 387 However, the seller must provide the buyer, upon request, with information 388 that the buyer needs for procuring insurance. 389 390

391 A4 392

Delivery 393 The seller must deliver the goods by placing them at the disposal of the 394 buyer at the agreed point, if any, at the named place of delivery, not loaded 395 on any collecting vehicle. If no specific point has been agreed within the 396 named place, and if there are several points available, the seller may select 397 the point at the place of delivery that best suits its purpose. The seller must 398 deliver the goods on the agreed date or within the agreed period. 399

400 401 A5 402

Transfer of risks 403 The seller must, subject to the provisions of B5, bear all risks of loss of or 404 damage to the goods until they have been delivered in accordance with A4. 405

406 407 A6 408

Allocation of costs 409 The seller must, subject to the provisions of B6, pay all costs relating to the 410 goods until they have been delivered in accordance with A4. 411

412 413 A7 414

Notices to the buyer 415 The seller must give the buyer any notice needed to enable the buyer to 416 fulfil its obligation under B4. 417

418 419 A8 420

Delivery document 421 No obligation owed by the seller to the buyer. 422

EXW 14

423 A9 424

Checking – packaging – marking 425 The seller must pay the costs of those checking operations (such as 426 checking quality, measuring, weighing, counting) that are necessary for the 427 purpose of delivering the goods in accordance with A4. 428

429 The seller must, at its own expense, package the goods (unless it is usual 430 for the particular trade to transport the type of goods sold unpackaged) in 431 the manner required for the transport of the goods arranged by it and, where 432 applicable, for any subsequent transport to the extent that the circumstances 433 relating to the transport (for example modalities, destination) are made 434 known to the seller before the contract of sale is concluded. Packaging is to 435 be marked appropriately. 436

437 438 A10 439

Other obligations 440 The seller must, where applicable, in timely fashion, provide to or render 441 assistance in obtaining for the buyer, at the latter’s request, risk and 442 expense, any documents and information, including security-related 443 information, that the buyer needs for the export and/or import of the goods 444 and/or for their transport to the final destination. 445 446

447 B THE BUYER’S OBLIGATIONS 448 449 B1 450

General obligations of the buyer 451 The buyer must pay the price of the goods as provided in the contract of 452 sale. 453 454 Any document referred to in B1 –B10 may be replaced by an equivalent 455 electronic record if agreed between the parties or customary. 456

457 458

EXW 15

B2 459 Licences, authorizations, security clearances and other formalities 460 Where applicable, it is up to the buyer to obtain at its own risk and expense 461 any export and import licence or other official authorization and carry out 462 all customs formalities for the export of the goods. 463 464

465 B3 466

Contracts of carriage and insurance 467 a) Contract of carriage 468 The buyer owes no obligation to the seller to make a contract of carriage. 469 470 b) Contract of insurance 471 The buyer owes no obligation to the seller to make a contract of insurance. 472

473 474 B4 475

Taking delivery 476 The buyer must take delivery of the goods when A4 and A7 have been 477 complied with. 478

479 480 B5 481

Transfer of risks 482 The buyer must bear all risks of loss of or damage to the goods from the 483 time they have been delivered in accordance with A4. 484 Should the buyer fail to give notice in accordance with B7, it must bear all 485 risks of loss of or damage to the goods from the agreed date or the expiry 486 date of the agreed period for delivery, provided that the goods have been set 487 aside or otherwise clearly identified as the contract goods. 488

489 490 B6 491

Allocation of costs 492 The buyer must pay 493

EXW 16

a) all costs relating to the goods from the time they have been delivered in 494 accordance with A4; 495 b) any additional costs incurred by failing either to take delivery of the 496 goods when they have been placed at its disposal, or to give appropriate 497 notice in accordance with B7, provided that the goods have been clearly 498 identified as the contract goods; and 499 c) where applicable, all duties, taxes and other charges as well as the costs 500 of carrying out customs formalities payable upon export. 501

502 The buyer must reimburse all costs and charges incurred by the seller in 503 rendering assistance in accordance with A2. 504

505 506 B7 507

Notices to the seller 508 The buyer must, whenever it is entitled to determine the time within an 509 agreed period and/or the place of taking delivery, give the seller sufficient 510 notice thereof. 511

512 513 B8 514

Proof of delivery 515 The buyer must provide the seller with appropriate evidence of having 516 taken delivery. 517

518 519 B9 520

Inspection of goods 521 The buyer must pay the costs of any mandated pre-shipment inspection, 522 including inspection mandated by the authorities of the country of export. 523

524 525 B10 526

Other obligations 527 The buyer must, in timely fashion, advise the seller of any cargo security 528 information requirements so that the seller may comply with A10. 529

EXW 17

530 The buyer must reimburse the seller for all costs and charges incurred by 531 the seller in providing or rendering assistance in obtaining documents and 532 information in accordance with A10. 533

FCA 18

534 FREE CARRIER 535 FCA (insert named place of delivery) Incoterms 2010 536 537 GUIDANCE NOTE 538 539 This term may be used irrespective of the mode of transport used, and may also 540 be used where more than one mode of transport is used. 541 “Free Carrier” means that the seller delivers the goods to the person nominated 542 by the buyer for transport of the goods at the seller’s premises or another named 543 place. 544 545 The parties are well advised to specify as clearly as possible the point within the 546 named place of delivery, as the costs and risks to that point are for the account 547 of the seller. If the parties intend to limit the seller’s obligations to the loading of 548 the goods at its premises, then “FCA seller’s premises” is the appropriate 549 Incoterm to use. If, on the other hand, the parties intend the goods to be 550 delivered at another place, they may do so by indicating that different, specific 551 place of delivery. 552 553 The FCA term requires the seller to clear the goods for export, where 554 applicable,. 555 However, the seller has no obligation to clear the goods for import or to pay any 556 import duty or for any customs formalities. 557 558 A THE SELLER’S OBLIGATIONS 559 560 A1 561


569

FCA 19

570 A2 571

Licences, authorizations, security clearances and other formalities 572 Where applicable, the seller must obtain at its own risk and expense any 573 export licence or other official authorization and carry out all customs 574 formalities necessary for the export of the goods. 575

576 577 A3 578

Contracts of carriage and insurance 579 a) Contract of carriage 580 The seller owes no obligation to the buyer to make a contract of carriage. 581 However, if requested by the buyer or if it is commercial practice and the 582 buyer does not give an instruction to the contrary in due time, the seller 583 may contract for carriage on usual terms at the buyer’s risk and expense. In 584 either case, the seller may decline to make the contract and, if it does, shall 585 promptly notify the buyer accordingly. 586 587 b) Contract of insurance 588 The seller owes no obligation to the buyer to make a contract of insurance. 589 However, the seller must provide the buyer, upon request, with information 590 that the buyer needs for procuring insurance. 591

592 593 A4 594

Delivery 595 The seller must deliver the goods to the carrier or another person nominated 596 by the buyer for transport at the agreed point, if any, at the named place on 597 the agreed date or within the agreed period. 598 599 Delivery is completed: 600 a) If the named place is the seller’s premises, when the goods have been 601 loaded on the means of transport provided by the buyer. 602 603

FCA 20

b) In any other case, when the goods are placed at the disposal of the carrier 604 or another person nominated by the buyer on the seller’s means of transport 605 ready for unloading by the buyer. 606

607 If no specific point has been notified by the buyer under B7 within the 608 named place, and if there are several points available, the seller may select 609 the point at the place of delivery that best suits its purpose. 610 611 Failing precise instructions from the buyer, the seller may deliver the goods 612 for carriage in such a manner as the quantity and/or nature of the goods 613 may require. 614

615 616 A5 617

Transfer of risks 618 The seller must, subject to the provisions of B5, bear all risks of loss of or 619 damage to the goods until they have been delivered in accordance with A4. 620 621

622 A6 623

Allocation of costs 624 The seller must, subject to the provisions of B6, pay 625 a) all costs relating to the goods until they have been delivered in 626 accordance 627 with A4; and 628 b) where applicable, the costs of customs formalities necessary for export 629 as well as all duties, taxes, and other charges payable upon export. 630

631 632 A7 633

Notices to the buyer 634 Where a period for delivery has been agreed in accordance with A4, the 635 seller must give the buyer reasonable notice of the date on which and, as the 636 case may be, the point at which the goods will be delivered in accordance 637 with A4. When the person nominated by the buyer for transport takes the 638 goods, the seller must notify the buyer of that fact without delay. Should 639

FCA 21

the person nominated by the buyer for transport fail to take the goods 640 within the time agreed, the seller must notify the buyer of that fact without 641 delay. 642

643 644 A8 645

Delivery document 646 The seller must provide the buyer at the seller’s expense with the usual 647 proof that the goods have been delivered in accordance with A4. 648 649 Unless such proof is a transport document, the seller must render assistance 650 to the buyer at the latter’s request, risk and expense in obtaining a transport 651 document. 652

653 654 A9 655

A9 Checking – packaging – marking 656 The seller must pay the costs of those checking operations (such as 657 checking quality, measuring, weighing, counting) that are necessary for the 658 purpose of delivering the goods in accordance with A4 as well as the cost 659 of any pre-shipment inspection mandated by the authority of the country of 660 export. 661 662 The seller must, at its own expense, package the goods (unless it is usual 663 for the particular trade to transport the type of goods sold unpackaged) in 664 the manner required for the transport of the goods, to the extent that the 665 circumstances relating to the transport (for example modalities, destination) 666 are made known to the seller before the contract of sale is concluded. 667 Packaging is to be marked appropriately. 668

669 670 A10 671

Other obligations 672 The seller must, where applicable, in timely fashion, provide to or render 673 assistance in obtaining for the buyer, at the latter’s request, risk and 674 expense, any documents and information, including security-related 675

FCA 22

information, that the buyer needs for the export and/or import of the goods 676 and/or for their transport to the final destination.. 677 678 The seller must reimburse the buyer for all costs and charges incurred by 679 the buyer in providing or rendering assistance in obtaining documents and 680 information in accordance with B10. 681



692 693 B2 694

Licences, authorizations, security clearances and other formalities 695 Where applicable, it is up to the buyer to obtain at its own risk and expense 696 any import licence or other official authorization and carry out all customs 697 formalities for the import of the goods and for their transit through any 698 country. 699

700 701 B3 702

Contracts of carriage and insurance 703 a) Contract of carriage 704 The buyer must contract at its own expense for the carriage of the goods 705 from the named place of delivery. 706 b) Contract of insurance 707 The buyer owes no obligation to the seller to make a contract of insurance. 708 However, the buyer must provide the seller, upon request, with the 709 necessary information for procuring insurance. 710 711

FCA 23

712 B4 713

Taking delivery 714 The buyer must take delivery of the goods when they have been delivered 715 in accordance with A4. 716

717 718 B5 719

Transfer of risks 720 The buyer must bear all risks of loss of or damage to the goods from the 721 time they have been delivered in accordance with A4. 722 723 Provided that the goods have been clearly set aside or otherwise identified 724 as the contract goods, the buyer must: 725 726 1. should it fail in accordance with B7 to notify the nomination of a 727 person for transport or to give notice, or 728 729 2. should the person nominated by the buyer for transport fail to take 730 the goods into its charge, 731 732 bear all risks of loss of or damage to the goods: 733 (a) from the agreed date, or in the absence of an agreed date, 734 (b)from the date notified by the seller under A7 within the agreed period or, 735 if no such date has been notified, 736 (c)from the expiry date of any agreed period for delivery. 737

738 739 B6 740

Allocation of costs 741 The buyer must pay 742 a) all costs, relating to the goods from the time they have been delivered in 743 accordance with A4 except, where applicable, the costs of customs 744 formalities necessary for export as well as all duties, taxes, and other 745 charges payable upon export referred to in A6(b); 746 747

FCA 24

b) any additional costs incurred, either because: 748 (i) it fails to nominate a person in accordance with A4, or 749 (ii) the person nominated by the buyer for transport fails to take the 750

goods into its charge, or 751 (iii) the buyer has failed to give appropriate notice in accordance 752

with B7, 753 provided that the goods have been clearly identified as the contract goods; 754 and 755

756 c) where applicable, all duties, taxes and other charges as well as the costs 757 of carrying out customs formalities payable upon import of the goods and 758 the costs for their transit through any country. 759

760 761 B7 762

Notices to the seller 763 The buyer must notify the seller of the name of the person nominated for 764 transport within sufficient time as to enable the seller to deliver the goods 765 in accordance with A4. Where necessary, the buyer must also notify the 766 seller, of the selected time within the period agreed for delivery when the 767 person nominated for transport will take the goods, the mode of transport to 768 be used by the person nominated, and the point within the place where the 769 goods should be delivered to that party. 770

771 772 B8 773

Proof of delivery 774 The buyer must accept the proof of delivery provided in accordance with 775 A8. 776

777 778 B9 779

Inspection of goods 780 The buyer must pay the costs of any mandated pre-shipment inspection 781 except when such inspection is mandated by the authorities of the country 782 of export. 783

FCA 25

784 785 B10 786

Other obligations 787 The buyer must, in timely fashion,advise the seller of any cargo security 788 information requirements so that the seller may comply with A10. 789 The buyer must reimburse the seller for all costs and charges incurred by 790 the seller in providing or rendering assistance in obtaining documents and 791 information in accordance with A10. 792

793 The buyer must, where applicable, in timely fashion, provide to or render 794 assistance in obtaining for the seller, at the latter’s request, risk and 795 expense, any documents and information, including security-related 796 information, that the seller needs for the transport and export of the goods 797 and for their transit through any country. 798

799 800 801 802

CPT 26

CARRIAGE PAID TO 803 CPT (insert named place of destination) Incoterms 2010 804 805 GUIDANCE NOTE 806 This term may be used irrespective of the mode of transport used, and may also 807 be used where more than one mode of transport is used. 808 “Carriage Paid To” means that the seller delivers the goods to the person 809 nominated by the seller for transport of the goods at an agreed place (if any such 810 place is agreed between the parties) and the seller must pay the cost of carriage 811 necessary to bring the goods to the named place of destination. 812 This term has two critical points because risk passes and costs are transferred at 813 different points. The parties are well advised to identify as precisely as possible 814 in the contract both the place of delivery, where the risk passes to the buyer, and 815 the named place of destination to which place the seller must contract for the 816 carriage of the goods. The buyer should be aware that failing agreement about 817 the point of delivery, the risk will pass where the goods are handed to the first 818 carrier, a point entirely of the seller’s choosing over which the buyer has no 819 control. 820 The parties are also well advised to identify as precisely as possible the point 821 within the agreed place of destination as the costs to that point are for the 822 account of the seller. The seller is advised to procure contracts of carriage that 823 match that choice precisely. If the seller incurs costs under its contract of 824 carriage such as those related to unloading at the named place of destination 825 agreed in the sale contract, the seller is not entitled to recover such costs from 826 the buyer unless otherwise agreed between the parties. 827 If several carriers are used for the carriage to the agreed destination, the default 828 position is that risk passes when the goods have been delivered to the first 829 carrier. Should the parties wish the risk to pass at a later stage (e.g., at an ocean 830 port), they need to specify this in their contract of sale. 831 The CPT term requires the seller to clear the goods for export, where applicable. 832 However, the seller has no obligation to clear the goods for import or to pay any 833 import duty or for any customs formalities. 834 835 836 A THE SELLER’S OBLIGATIONS 837 A1 838

CPT 27

General obligations of the seller 839 The seller must provide the goods and the commercial invoice in 840 conformity with the contract of sale and any other evidence of conformity 841 that may be required by the contract. 842 843 Any document referred to in A1 –A10 may be replaced by an equivalent 844 electronic record if agreed between the parties or customary. 845 846

847 A2 848


853 854 A3 855

Contracts of carriage and insurance 856 a) Contract of carriage 857 The seller must contract or procure a contract for the carriage of the goods 858 from the place of delivery or, if agreed, the point of delivery to the agreed 859 point, if any, at the named place of destination. The contract of carriage 860 must be made on usual terms at the seller’s expense and provide for 861 carriage by the usual route and in a customary manner. If a point is not 862 agreed or is not determined by practice, the seller may select the point at 863 the named place of destination that best suits its purpose. 864 b) Contract of insurance 865 The seller owes no obligation to the buyer to make a contract of insurance. 866 However, the seller must provide the buyer, upon request, with information 867 that the buyer needs for procuring insurance. 868

869 870 A4 871

Delivery 872

CPT 28

The seller must deliver the goods by handing them over to the carrier 873 contracted in accordance with A3 on the agreed date or within the agreed 874 period. 875

876 877 A5 878

Transfer of risks 879 The seller must, subject to the provisions of B5, bear all risks of loss of or 880 damage to the goods until they have been delivered in accordance with A4.881 882 883

A6 884 Allocation of costs 885 The seller must, subject to the provisions of B6, pay 886 a) all costs relating to the goods until they have been delivered in 887 accordance with A4; 888 889 b) the freight and all other costs resulting from A3 a), including the costs 890 of loading the goods and any charges for unloading at the place of 891 destination that were for the seller’s account under the contract of carriage; 892 and 893 894 c) where applicable, the costs of customs formalities necessary for export 895 as well as all duties, taxes and other charges payable upon export, and the 896 costs for their transit through any country that were for the seller’s account 897 under the contract of carriage. 898

899 900 A7 901

Notices to the buyer 902 The seller must give the buyer any notice needed in order to allow the 903 buyer to take measures that are normally necessary to enable the buyer to 904 take the goods. 905 906

907 A8 908

CPT 29

Delivery document 909 If customary or at the buyer’s request the seller must provide the buyer at 910 the seller’s expense with the usual transport document or documents for the 911 transport contracted in accordance with A3. 912 This document must cover the contract goods, be dated within the period 913 agreed for shipment, enable the buyer to claim the goods from the carrier at 914 the named place of destination and, unless otherwise agreed, enable the 915 buyer to sell the goods in transit by the transfer of the document to a 916 subsequent buyer or by notification to the carrier. 917 918 When such a transport document is issued in negotiable form and in several 919 originals, a full set of originals must be presented to the buyer. 920

921 922 A9 923

Checking – packaging – marking 924 The seller must pay the costs of those checking operations (such as 925 checking quality, measuring, weighing, counting) that are necessary for the 926 purpose of delivering the goods in accordance with A4 as well as the cost 927 of any pre-shipment inspection mandated by the authority of the country of 928 export. 929 The seller must, at its own expense, package the goods (unless it is usual 930 for the particular trade to transport the type of goods sold unpackaged) in 931 the manner required for the transport of the goods arranged by it and, 932 where applicable, for any subsequent transport to the extent that the 933 circumstances relating to the transport (for example modalities, destination) 934 are made known to the seller before the contract of sale is concluded. 935 Packaging is to be marked appropriately. 936

937 938 A10 939

Other obligations 940 The seller must, where applicable, in timely fashion, in timely fashion, in timely fashion, in timely fashion, provide to or render 941 assistance in obtaining for the buyer, at the latter’s request, risk and 942 expense, any documents and information, including security-related 943

CPT 30

information, that the buyer needs for the export and/or import of the goods 944 and/or for their transport to the final destination. 945 946 The seller must reimburse the buyer for all costs and charges incurred by 947 the buyer in providing or rendering assistance in obtaining documents and 948 information in accordance with B10. 949


General obligations of the buyer 954 The buyer must pay the price of the goods as provided in the contract of 955 sale. 956 957 Any document referred to in B1 –B10 may be replaced by an equivalent 958 electronic record if agreed between the parties or customary. 959 960

961 B2 962


968 969 B3 970

Contracts of carriage and insurance 971 a) Contract of carriage 972 The buyer owes no obligation to the seller to make a contract of carriage. 973 974 b) Contract of insurance 975 The buyer owes no obligation to the seller to make a contract of insurance. 976 However, the buyer must provide the seller, upon request, with the 977 necessary information for procuring insurance. 978

CPT 31

979 980

B4 981 Taking delivery 982 The buyer must take delivery of the goods when they have been delivered 983 in accordance with A4 and receive them from the carrier at the named place 984 of destination. 985

986 987 B5 988

Transfer of risks 989 The buyer must bear all risks of loss of or damage to the goods from the 990 time they have been delivered in accordance with A4. 991 Should the buyer fail to give notice in accordance with B7, it must bear all 992 risks of loss of or damage to the goods from the agreed date or the expiry 993 date of the agreed period for delivery, provided that the goods have been 994 set aside or otherwise clearly identified as the contract goods. 995

996 997 B6 998

Allocation of costs 999 The buyer must, subject to the provisions of A3 a), pay 1000 a) all costs relating to the goods from the time they have been delivered in 1001 accordance with A4 except, where applicable, the costs of customs 1002 formalities necessary for export as well as all duties, taxes, and other 1003 charges payable upon export referred to in A6(c); 1004 1005 b) all costs and charges relating to the goods while in transit until their 1006 arrival at the agreed place of destination, unless such costs and charges 1007 were for the seller’s account under the contract of carriage; 1008 1009 c) unloading costs unless such costs were for the seller’s account under the 1010 contract of carriage; 1011 1012 d) all additional costs relating to the goods incurred if it fails to give notice 1013 in accordance with B7 from the agreed date or the expiry date of the agreed 1014

CPT 32

period for dispatch, provided that the goods have been clearly identified as 1015 the contract goods; and 1016 1017 e) where applicable, all duties, taxes and other charges as well as the costs 1018 of carrying out customs formalities payable upon import of the goods and 1019 the costs for their transit through any country unless included within the 1020 cost of the contract of carriage. 1021

1022 1023 B7 1024

Notices to the seller 1025 The buyer must, whenever it is entitled to determine the time for 1026 dispatching the goods and/or the point within the named place of 1027 destination, give the seller sufficient notice thereof. 1028 1029

1030 B8 1031

Proof of delivery 1032 The buyer must accept the transport document provided in accordance with 1033 A8 if it is in conformity with the contract. 1034 1035

1036 B9 1037


1042 1043 B10 1044

Other obligations 1045 1046 The buyer must, in timely fashion, advise the seller of any cargo security 1047 information requirements so that the seller may comply with A10. 1048

CPT 33

The buyer must reimburse the seller for all costs and charges incurred by 1049 the seller in providing or rendering assistance in obtaining documents and 1050 information in accordance with A10. 1051 The buyer must, where applicable, in timely fashion, provide to or render 1052 assistance in obtaining for the seller, at the latter’s request, risk and 1053 expense, any documents and information, including security-related 1054 information, that the seller needs for the transport and export of the goods 1055 and for their transit through any country. 1056

CIP 34

CARRIAGE AND INSURANCE PAID TO 1057 1058 CIP (insert named place of destination) Incoterms 2010 1059 GUIDANCE NOTE 1060 This term may be used irrespective of the mode of transport used, and may also 1061 be used where more than one mode of transport is used. 1062 “Carriage and Insurance Paid to” means that the seller delivers the goods to the 1063 person nominated by the seller for transport of the goods at an agreed place (if 1064 any such place is agreed between the parties) and the seller must pay the cost of 1065 carriage necessary to bring the goods to the named place of destination. The 1066 seller contracts for insurance cover against the buyer’s risk of loss of or damage 1067 to the goods during the carriage. 1068 The buyer should note that under the CIP term the seller is required to obtain 1069 insurance on minimum cover. Should the buyer wish to have more insurance 1070 protection, it would need either to agree as much expressly with the seller or to 1071 make its own extra insurance arrangements. 1072 This term has two critical points because risk passes and costs are transferred at 1073 different points. The parties are well advised to identify as precisely as possible 1074 in the contract both the place of delivery, where the risk passes to the buyer, and 1075 the named place of destination to which place the seller must contract for the 1076 carriage of the goods. The buyer should be aware that failing agreement about 1077 the point of delivery, the risk will pass where the goods are handed to the first 1078 carrier, a point entirely of the seller’s choosing over which the buyer has no 1079 control. 1080 The parties are also well advised to identify as precisely as possible the point 1081 within the agreed place of destination as the costs to that point are for the 1082 account of the seller. The seller is advised to procure contracts of carriage that 1083 match that choice precisely. If the seller incurs costs under its contract of 1084 carriage such as those related to unloading at the named place of destination 1085 agreed in the sale contract, the seller is not entitled to recover such costs from 1086 the buyer unless otherwise agreed between the parties. 1087 If several carriers are used for the carriage to the agreed destination, the default 1088 position is that risk passes when the goods have been delivered to the first 1089 carrier. . 1090

CIP 35

The CIP term requires the seller to clear the goods for export, where applicable. 1091 However, the seller has no obligation to clear the goods for import or to pay any 1092 import duty or for any customs formalities. 1093 1094 A THE SELLER’S OBLIGATIONS 1095 1096 A1 1097


1106 A2 1107


1112 1113 A3 1114

Contracts of carriage and insurance 1115 a) Contract of carriage 1116 The seller must contract or procure a contract for the carriage of the goods 1117 on usual terms at its own expense from the place of delivery or, if agreed, 1118 the point of delivery, to the agreed point, if any, at the named place of 1119 destination. The contract of carriage must be made on usual terms at the 1120 seller’s expense and provide for carriage by the usual route and in a 1121 customary manner. If a point is not agreed or is not determined by 1122 practice, the seller may select the point at the named place of destination 1123 that best suits its purpose. 1124 b) Contract of insurance 1125

CIP 36

The seller must obtain at its own expense cargo insurance complying at 1126 least with the minimum cover as provided by Clauses (C) of the Institute 1127 Cargo Clauses (LMA/IUA) or any similar set of clauses. The insurance 1128 shall be contracted with underwriters or an insurance company of good 1129 repute and entitle the buyer, or any other person having an insurable 1130 interest in the goods, to claim directly from the insurer. When required by 1131 the buyer, the seller shall, subject to the buyer providing any necessary 1132 information requested by the seller, provide at the buyer’s expense any 1133 cover ,if procurable, complying with the Institute War Clauses and/or 1134 Institute Strikes Clauses (LMA/IUA) or any similar set of clauses. , 1135 The insurance shall cover, at a minimum, the price provided in the contract 1136 plus ten per cent (i.e., 110%) and shall be in the currency of the contract. 1137 The insurance cover shall attach from the point of delivery set out in A4 1138 and A5 to at least the named place of destination. 1139 The seller must provide the buyer with the insurance policy or other 1140 evidence of insurance cover. 1141 Moreover, the seller must provide the buyer, upon request, with 1142 information that the buyer needs to procure any additional insurance. 1143 1144

1145 A4 1146

Delivery 1147 The seller must deliver the goods by handing them over to the carrier 1148 contracted in accordance with A3 on the agreed date or within the agreed 1149 period. 1150 1151

1152 A5 1153

Transfer of risks 1154 The seller must, subject to the provisions of B5, bear all risks of loss of or 1155 damage to the goods until they have been delivered in accordance with A4.1156 1157

1158 A6 1159

Allocation of costs 1160 The seller must, subject to the provisions of B6, pay 1161

CIP 37

a) all costs relating to the goods until they have been delivered in 1162 accordance with A4; 1163 1164 b) the freight and all other costs resulting from A3 a), including the costs 1165 of loading the goods and any charges for unloading at the place of 1166 destination that were for the seller’s account under the contract of carriage; 1167 and 1168 1169 c) the costs of insurance resulting from A3 b); and 1170 1171 d) where applicable, the costs of customs formalities necessary for export 1172 as well as all duties, taxes and other charges payable upon export, and the 1173 costs for their transit through any country that were for the seller’s account 1174 under the contract of carriage. 1175

1176 1177 A7 1178


1184 A8 1185

Delivery document 1186 If customary or at the buyer’s request the seller must provide the buyer at 1187 the seller’s expense with the usual transport document or documents for the 1188 transport contracted in accordance with A3. 1189 This document must cover the contract goods, be dated within the period 1190 agreed for shipment, enable the buyer to claim the goods from the carrier at 1191 the named place of destination and, unless otherwise agreed, enable the 1192 buyer to sell the goods in transit by the transfer of the document to a 1193 subsequent buyer or by notification to the carrier. 1194 1195 When such a transport document is issued in negotiable form and in several 1196 originals, a full set of originals must be presented to the buyer. 1197

CIP 38

1198 A9 1199


1213 1214 A10 1215

Other obligations 1216 The seller must, where applicable, in timely fashion, , , , provide to or render 1217 assistance in obtaining for the buyer, at the latter’s request, risk and 1218 expense, any documents and information, including security-related 1219 information, that the buyer needs for the export and/or import of the goods 1220 and/or for their transport to the final destination. 1221 1222 The seller must reimburse the buyer for all costs and charges incurred by 1223 the buyer in providing or rendering assistance in obtaining documents and 1224 information in accordance with B10. 1225 1226


General obligations of the buyer 1231 The buyer must pay the price of the goods as provided in the contract of 1232 sale. 1233

CIP 39

1234 Any document referred to in B1 –B10 may be replaced by an equivalent 1235 electronic record if agreed between the parties or customary. 1236 1237

1238 B2 1239


1245 1246 B3 1247

Contracts of carriage and insurance 1248 a) Contract of carriage 1249 The buyer owes no obligation to the seller to make a contract of carriage. 1250 1251 b) Contract of insurance 1252 The buyer owes no obligation to the seller to make a contract of insurance. 1253 However, the buyer must provide the seller, upon request, with any 1254 information necessary for the seller to procure any additional insurance 1255 requested by the buyer in accordance with A3. 1256 1257

1258 B4 1259

Taking delivery 1260 The buyer must take delivery of the goods when they have been delivered 1261 in accordance with A4 and receive them from the carrier at the named place 1262 of destination. 1263 1264

1265 B5 1266

Transfer of risks 1267 The buyer must bear all risks of loss of or damage to the goods from the 1268 time they have been delivered in accordance with A4. 1269

CIP 40

Should the buyer fail to give notice in accordance with B7, it must bear all 1270 risks of loss of or damage to the goods from the agreed date or the expiry 1271 date of the agreed period for delivery, provided that the goods have been 1272 set aside or otherwise clearly identified as the contract goods. 1273

1274 1275 B6 1276

Allocation of costs 1277 The buyer must, subject to the provisions of A3 a), pay 1278 a) all costs relating to the goods from the time they have been delivered in 1279 accordance with A4 except, where applicable, the costs of customs 1280 formalities necessary for export as well as all duties, taxes, and other 1281 charges payable upon export referred to in A6(d); 1282 1283 b) all costs and charges relating to the goods while in transit until their 1284 arrival at the agreed place of destination, unless such costs and charges 1285 were for the seller’s account under the contract of carriage; 1286 1287 c) unloading costs unless such costs were for the seller’s account under the 1288 contract of carriage; 1289 1290 d) all additional costs incurred if it fails to give notice in accordance with 1291 B7, for the goods from the agreed date or the expiry date of the agreed 1292 period for dispatch, provided that the goods have been clearly identified as 1293 the contract goods; 1294 1295 e) where applicable, all duties, taxes and other charges as well as the costs 1296 of carrying out customs formalities payable upon import of the goods and 1297 the costs for their transit through any country unless included within the 1298 cost of the contract of carriage; and 1299 f) The costs of any additional insurance procured at the buyer’s request 1300 under A3 and B3. 1301

1302 1303 B7 1304

Notices to the seller 1305

CIP 41

The buyer must, whenever it is entitled to determine the time for 1306 dispatching the goods and/or the point within the named place of 1307 destination, give the seller sufficient notice thereof. 1308

1309 1310 B8 1311

Proof of delivery 1312 The buyer must accept the transport document provided in accordance with 1313 A8 if it is in conformity with the contract. 1314

1315 1316 B9 1317


1322 1323 B10 1324

Other obligations 1325 The buyer must, in timely fashion, advise the seller of any cargo security 1326 information requirements so that the seller may comply with A10. 1327 The buyer must reimburse the seller for all costs and charges incurred by 1328 the seller in providing or rendering assistance in obtaining documents and 1329 information in accordance with A10. 1330 The buyer must, where applicable, in timely fashion, provide to or render 1331 assistance in obtaining for the seller, at the latter’s request, risk and 1332 expense, any documents and information, including security-related 1333 information, that the seller needs for the transport and export of the goods 1334 and for their transit through any country. 1335

DAP 42

DELIVERED AT PLACE 1336 DAP (insert named place of destination) Incoterms 2010 1337 1338 GUIDANCE NOTE 1339 This term may be used irrespective of the mode of transport used, and may also 1340 be used where more than one mode of transport is used. 1341 ”Delivered at Place” means that the seller delivers when the goods are placed at 1342 the disposal of the buyer on the arriving means of transport ready for unloading 1343 by the buyer at the named place of destination. The seller has to bear all the 1344 costs and risks involved in bringing the goods to the named place. 1345 1346 The parties are well advised to specify as clearly as possible the point within the 1347 agreed place of destination, as the costs and risks to that point are for the 1348 account of the seller. The seller is advised to procure contracts of carriage that 1349 match that choice precisely. If the seller incurs costs under its contract of 1350 carriage such as those related to unloading at the place of destination agreed in 1351 the sale contract, the seller is not entitled to recover such costs from the buyer 1352 unless otherwise agreed between the parties. 1353 If the carriage is international, the DAP term requires the seller to clear the 1354 goods for export. However, the seller has no obligation to clear the goods for 1355 import or to pay any import duty or for any customs formalities. 1356 1357 A THE SELLER’S OBLIGATIONS 1358 1359 A1 1360


1369 A2 1370

Licences, authorizations, security clearances and other formalities 1371

DAP 43

Where applicable, the seller must obtain at its own risk and expense any 1372 export licence and other official authorization and carry out all customs 1373 formalities necessary for the export of the goods and for their transit 1374 through any country other than the country of destination. 1375

1376 1377

A3 1378 Contracts of carriage and insurance 1379 a) Contract of carriage 1380 The seller must contract at its own expense for the carriage of the goods to 1381 the named place of destination or to the agreed point, if any, at the named 1382 place of destination. If a specific point is not agreed or is not determined by 1383 practice, the seller may select the point at the named place of destination 1384 that best suits its purpose. 1385 1386 b) Contract of insurance 1387 The seller owes no obligation to the buyer to make a contract of insurance. 1388 However, the seller must provide the buyer, upon request, with information 1389 that the buyer needs for procuring insurance. 1390

1391 1392 A4 1393

Delivery 1394 The seller must deliver the goods by placing them at the disposal of the 1395 buyer on the arriving means of transport ready for unloading by the buyer 1396 at the agreed point, if any, at the named place of destination on the agreed 1397 date or within the agreed period, 1398 1399

1400 A5 1401


1406 A6 1407

DAP 44

Allocation of costs 1408 The seller must, subject to the provisions of B6, pay 1409 a) in addition to costs resulting from A3 a), all costs relating to the goods 1410 until they have been delivered in accordance with A4; 1411 1412 b) the freight and all other costs resulting from A3 a), including the costs of 1413 loading the goods and any charges for unloading at the place of destination 1414 that were for the seller’s account under the contract of carriage; and 1415 1416 c) where applicable, the costs of customs formalities necessary for export 1417 as well as all duties, taxes and other charges payable upon export and the 1418 costs for their transit through any country, other than the country of 1419 destination, prior to delivery in accordance with A4. 1420 1421

1422 A7 1423

Notices to the buyer 1424 The seller must give the buyer any notice needed in order to allow the 1425 buyer to take measures that are normally necessary to enable the buyer to 1426 take delivery of the goods. 1427 1428

1429 A8 1430

Delivery document 1431 The seller must provide the buyer at the seller’s expense with a document 1432 enabling the buyer to take delivery of the goods in accordance with A4/B4. 1433 1434

1435 A9 1436

Checking – packaging – marking 1437 The seller must pay the costs of those checking operations (such as 1438 checking quality, measuring, weighing, counting) that are necessary for the 1439 purpose of delivering the goods in accordance with A4 as well as the cost 1440 of any pre-shipment inspection mandated by the authority of the country of 1441 export. 1442

DAP 45

The seller must, at its own expense, package the goods (unless it is usual 1443 for the particular trade to transport the type of goods sold unpackaged) in 1444 the manner required for the transport of the goods arranged by it and, 1445 where applicable, for any subsequent transport to the extent that the 1446 circumstances relating to the transport (for example modalities, destination) 1447 are made known to the seller before the contract of sale is concluded. 1448 Packaging is to be marked appropriately. 1449 1450

1451 A10 1452

Other obligations 1453 The seller must, where applicable, in timely fashion, in timely fashion, in timely fashion, in timely fashion, provide to or render 1454 assistance in obtaining for the buyer, at the latter’s request, risk and 1455 expense, any documents and information, including security-related 1456 information, that the buyer needs for the import of the goods and for their 1457 transport to the final destination. 1458 1459 The seller must reimburse the buyer for all costs and charges incurred by 1460 the buyer in providing or rendering assistance in obtaining documents and 1461 information in accordance with B10. 1462


General obligations of the buyer 1467 The buyer must pay the price of the goods as provided in the contract of 1468 sale. 1469 1470 Any document referred to in B1 –B10 may be replaced by an equivalent 1471 electronic record if agreed between the parties or customary. 1472 1473 1474

B2 1475 Licences, authorizations, security clearances and other formalities 1476

DAP 46

Where applicable, the buyer must obtain at its own risk and expense any 1477 import licence or other official authorization and carry out all customs 1478 formalities for the import of the goods. 1479

1480 1481 B3 1482

Contracts of carriage and insurance 1483 a) Contract of carriage 1484 The buyer owes no obligation to the seller to make a contract of carriage. 1485 1486 b) Contract of insurance 1487 The buyer owes no obligation to the seller to make a contract of insurance. 1488 However, the buyer must provide the seller, upon request, with the 1489 necessary information for procuring insurance. 1490 1491

1492 B4 1493

Taking delivery 1494 The buyer must take delivery of the goods when they have been delivered 1495 in accordance with A4. 1496 1497

1498 B5 1499

Transfer of risks 1500 The buyer must bear all risks of loss of or damage to the goods from the 1501 time they have been delivered in accordance with A4. 1502 Provided that the goods have been set aside or otherwise clearly identified 1503 as the contract goods, the buyer must: 1504 1. should it fail to fulfil its obligations in accordance with B2, bear all 1505

resulting risks of loss of or damage to the goods; and 1506 2. should it fail to fulfil its obligations in accordance with B7, bear all risks 1507

of loss of or damage to the goods from the agreed date or the expiry date 1508 of the agreed period for delivery. 1509

1510 1511 B6 1512

DAP 47

Allocation of costs 1513 The buyer must pay 1514 a) all costs relating to the goods from the time they have been delivered in 1515 accordance with A4; 1516 1517 b) all costs of unloading necessary to take delivery of the goods from the 1518 arriving means of transport at the named place of destination, unless such 1519 costs were for the seller’s account under the contract of carriage; 1520 1521 c) all additional costs incurred if it fails to fulfil its obligations in 1522 accordance with B2, or to give notice in accordance with B7, provided that 1523 the goods have been clearly identified as the contract goods; and 1524 1525 d) where applicable, the costs of customs formalities as well as all duties, 1526 taxes and other charges payable upon import of the goods. 1527

1528 1529 B7 1530

Notices to the seller 1531 The buyer must, whenever it is entitled to determine the time within an 1532 agreed period and/or the point of taking delivery at the named place of 1533 destination, give the seller sufficient notice thereof. 1534 1535

1536 B8 1537


1541 1542 B9 1543

Inspection of goods 1544 The buyer must pay the costs of any mandated pre-shipment inspection 1545 except when such inspection is mandated by the authorities of the country 1546 of export. 1547 1548

DAP 48

1549 B10 1550

Other obligations 1551 The buyer must, in timely fashion, advise the seller of any cargo security 1552 information requirements so that the seller may comply with A10. 1553 The buyer must reimburse the seller for all costs and charges incurred by 1554 the seller in providing or rendering assistance in obtaining documents and 1555 information in accordance with A10. 1556 The buyer must, where applicable, in timely fashion, provide to or render 1557 assistance in obtaining for the seller, at the latter’s request, risk and 1558 expense, any documents and information, including security-related 1559 information, that the seller needs for the transport and export of the goods 1560 and where necessary, for their transit through any country. 1561

DDP 49

DELIVERED DUTY PAID 1562 DDP DDP DDP DDP (insert named place of destination) Incoterms 2010 1563 1564 GUIDANCE NOTE 1565 This term may be used irrespective of the mode of transport used, and may also 1566 be used where more than one mode of transport is used. 1567 “Delivered Duty Paid” means that the seller delivers the goods to the buyer, 1568 cleared for import on the arriving means of transport ready for unloading by the 1569 buyer at the named place of destination. The seller has to bear all the costs and 1570 risks involved in bringing the goods to that place and has an obligation to clear 1571 the goods for import and to pay any import duty and for any customs 1572 formalities. 1573 DDP represents the maximum obligation for the seller. 1574 The parties are well advised to specify as clearly as possible the point within the 1575 agreed place of destination, as the costs and risks to that point are for the 1576 account of the seller. The seller is advised to procure contracts of carriage that 1577 match that choice precisely. If the seller incurs costs under its contract of 1578 carriage such as those related to unloading at the place of destination agreed in 1579 the sale contract, the seller is not entitled to recover such costs from the buyer 1580 unless otherwise agreed between the parties. 1581 The parties are well advised not to use DDP if the seller is unable directly or 1582 indirectly to obtain import clearance. 1583 If the parties wish the buyer to bear all risks and costs of the import, the DAP 1584 term should be used. 1585 Any VAT or similar taxes payable upon import are for the sellers’ account 1586 unless expressly agreed otherwise in the sales contract. 1587 A THE SELLER’S OBLIGATIONS 1588 1589 A1 1590


DDP 50

. 1598 A2 1599

Licences, authorizations, security clearances and other formalities 1600 Where applicable, the seller must obtain at its own risk and expense any 1601 export and import licence and other official authorization and carry out all 1602 customs formalities necessary for the export of the goods, for their transit 1603 through any country and for their import. 1604

1605 1606 A3 1607

Contracts of carriage and insurance 1608 a) Contract of carriage 1609 The seller must contract at its own expense for the carriage of the goods to 1610 the named place of destination or to the agreed point, if any, at the named 1611 place of destination. If a specific point is not agreed or is not determined by 1612 practice, the seller may select the point at the named place of destination 1613 that best suits its purpose. 1614 b) Contract of insurance 1615 The seller owes no obligation to the buyer to make a contract of insurance. 1616 However, the seller must provide the buyer, upon request, with information 1617 that the buyer needs for procuring insurance. 1618

1619 1620 A4 1621

Delivery 1622 The seller must deliver the goods by placing them at the disposal of the 1623 buyer on the arriving means of transport ready for unloading by the buyer 1624 at the agreed point, if any, at the named place of destination on the agreed 1625 date or within the agreed period, in such a way as to enable them to be 1626 removed from the arriving means of transport by unloading equipment 1627 appropriate to the nature of the goods. 1628 1629

1630 A5 1631

Transfer of risks 1632

DDP 51

The seller must, subject to the provisions of B5, bear all risks of loss of or 1633 damage to the goods until they have been delivered in accordance with A4.1634 1635 1636

A6 1637 Allocation of costs 1638 The seller must, subject to the provisions of B6, pay 1639 a) in addition to costs resulting from A3 a), all costs relating to the goods 1640 until they have been delivered in accordance with A4; 1641 1642 b) the freight and all other costs resulting from A3 a), including the costs 1643 of loading the goods and any charges for unloading at the place of 1644 destination that were for the seller’s account under the contract of carriage; 1645 and 1646 c) where applicable, the costs of customs formalities necessary for export 1647 and import as well as all duties, taxes and other charges payable upon 1648 export and import of the goods, and the costs for their transit through any 1649 country prior to delivery in accordance with A4. 1650

1651 1652 A7 1653

Notices to the buyer 1654 The seller must give the buyer any notice needed in order to allow the 1655 buyer to take measures that are normally necessary to enable the buyer to 1656 take delivery of the goods. 1657

1658 1659 A8 1660

Delivery document 1661 The seller must provide the buyer at the seller’s expense with a document 1662 enabling the buyer to take delivery of the goods in accordance with A4/B4. 1663 1664 1665

A9 1666 Checking – packaging – marking 1667

DDP 52

The seller must pay the costs of those checking operations (such as 1668 checking quality, measuring, weighing, counting) that are necessary for the 1669 purpose of delivering the goods in accordance with A4 as well as the cost 1670 of any pre-shipment inspection mandated by the authority of the country of 1671 export or of import. 1672 The seller must, at its own expense, package the goods (unless it is usual 1673 for the particular trade to transport the type of goods sold unpackaged) in 1674 the manner required for the transport of the goods arranged by it and, 1675 where applicable, for any subsequent transport to the extent that the 1676 circumstances relating to the transport (for example modalities, destination) 1677 are made known to the seller before the contract of sale is concluded. 1678 Packaging is to be marked appropriately. 1679 1680

1681 A10 1682

Other obligations 1683 The seller must, where applicable, in timely fashion, in timely fashion, in timely fashion, in timely fashion, provide to or render 1684 assistance in obtaining for the buyer, at the latter’s request, risk and 1685 expense, any documents and information, including security-related 1686 information, that the buyer needs for the transport of the goods to the final 1687 destination. 1688 1689

1690 The seller must reimburse the buyer for all costs and charges incurred by 1691 the buyer in providing to or rendering assistance in obtaining documents 1692 and information in accordance with B10. 1693 1694

B THE BUYER’S OBLIGATIONS 1695 1696 B1 1697


1701 Any document referred to in B1 –B10 may be replaced by an equivalent 1702 electronic record if agreed between the parties or customary. 1703

DDP 53

1704 B2 1705

Licences, authorizations, security clearances and other formalities 1706 Where applicable, the buyer must render assistance to the seller at the 1707 latter's request, risk and expense in obtaining any import licence or other 1708 official authorization for the import of the goods. 1709 1710

B3 1711 Contracts of carriage and insurance 1712 a) Contract of carriage 1713 The buyer owes no obligation to the seller to make a contract of carriage. 1714 1715 b) Contract of insurance 1716 The buyer owes no obligation to the seller to make a contract of insurance. 1717 However, the buyer must provide the seller, upon request, with the 1718 necessary information for procuring insurance. 1719 1720

1721 B4 1722


1726 1727 B5 1728

Transfer of risks 1729 The buyer must bear all risks of loss of or damage to the goods from the 1730 time they have been delivered in accordance with A4. 1731 Provided that the goods have been set aside or otherwise clearly identified 1732 as the contract goods, the buyer must: 1733 1. should it fail to fulfil its obligations in accordance with B2, bear all 1734 resulting risks of loss of or damage to the goods incurred thereby; and 1735 2. should it fail to give notice in accordance with B7, bear all risks of 1736 loss of or damage to the goods from the agreed date or the expiry date of 1737 the agreed period for delivery. 1738

1739

DDP 54

1740 B6 1741

Allocation of costs 1742 The buyer must pay 1743 a) all costs relating to the goods from the time they have been delivered in 1744 accordance with A4; 1745 1746 b) all costs of unloading necessary to take delivery of the goods from the 1747 arriving means of transport at the named place of destination, unless such 1748 costs were for the seller’s account under the contract of carriage; and 1749 1750 c) all additional costs incurred if it fails to fulfil its obligations in 1751 accordance with B2, or to give notice in accordance with B7, provided that 1752 the goods have been clearly identified as the contract goods. 1753 1754

1755 B7 1756

Notices to the seller 1757 The buyer must, whenever it is entitled to determine the time within an 1758 agreed period and/or the point of taking delivery at the named place of 1759 destination, give the seller sufficient notice thereof. 1760

1761 1762 B8 1763


1767 1768 B9 1769

Inspection of goods 1770 The buyer owes no obligation to the seller to pay for any mandated pre-1771 shipment inspection mandated by the authority of the country of export or 1772 of import. 1773 1774

1775

DDP 55

B10 1776 1777 Other obligations 1778 The buyer must, in timely fashion, reimburse the seller for all costs and 1779 charges incurred by the seller in providing or rendering assistance in 1780 obtaining documents and information in accordance with A10. 1781

1782 The buyer must, where applicable, in timely fashion, provide to or render 1783 assistance in obtaining for the seller, at the latter’s request, risk and 1784 expense, any documents and information, including security-related 1785 information, that the seller needs for the transport, export and import of the 1786 goods and for their transit through any country. 1787

1788 1789

56

1790 MARITIME-ONLY TERMS 1791

FAS 57

FREE ALONGSIDE SHIP 1792 FAS (insert named port of shipment) Incoterms 2010 1793 1794 GUIDANCE NOTE 1795 1796 This term is to be used only for sea or inland waterway transport. 1797 1798 “Free Alongside Ship” means that the seller delivers when the goods are placed 1799 alongside the vessel, e.g., on a quay or a barge, at the named port of shipment. 1800 The buyer has to bear all costs and risks of loss of or damage to the goods from 1801 that moment. 1802 1803 The parties are well advised to specify as clearly as possible the loading point at 1804 the named port of shipment as the costs and risks to that point are for the 1805 account of the seller and these costs and associated handling charges may vary 1806 according to the practice of the port. 1807 1808 Where the goods are packed in containers, it is typical for the seller to hand the 1809 goods over to the carrier at a terminal and not alongside the vessel. In such 1810 situations, the FAS term would be inappropriate, and the FCA term should be 1811 used. 1812 1813 The FAS term requires the seller to clear the goods for export, where applicable. 1814 However, the seller has no obligation to clear the goods for import or to pay any 1815 import duty or for any customs formalities. 1816 1817 A THE SELLER’S OBLIGATIONS 1818 1819 A1 1820


FAS 58

1828 1829 1830 A2 1831


1836 1837 A3 1838

Contracts of carriage and insurance 1839 a) Contract of carriage 1840 The seller owes no obligation to the buyer to make a contract of carriage. 1841 1842 b) Contract of insurance 1843 The seller owes no obligation to the buyer to make a contract of insurance. 1844 However, the seller must provide the buyer, upon request, with information 1845 that the buyer needs for procuring insurance. 1846

1847 1848 A4 1849

Delivery 1850 The seller must deliver the goods, or procure goods delivered, by placing 1851 them alongside the vessel nominated by the buyer at the loading point, if 1852 any, indicated by the buyer at the named port of shipment on the agreed 1853 date or within the agreed period and in the manner customary at the port. 1854 1855 If no specific loading point has been indicated by the buyer, the seller may 1856 select the point that best suits its purpose. 1857

1858 1859 A5 1860


FAS 59

1864 A6 1865

Allocation of costs 1866 The seller must, subject to the provisions of B6, pay 1867 a) all costs relating to the goods until they have been delivered in 1868 accordance with A4; and 1869 1870 b) where applicable, the costs of customs formalities necessary for export 1871 as well as all duties, taxes, and other charges payable upon export. 1872

1873 1874 A7 1875

Notices to the buyer 1876 Where a period for delivery has been agreed in accordance with A4, the 1877 seller must give the buyer reasonable notice of the date on which and, as the 1878 case may be, the point at which the goods will be delivered in accordance 1879 with A4. 1880 1881 Should the vessel nominated by the buyer fail to arrive within the time 1882 agreed, the seller must notify the buyer of that fact without delay. 1883

1884 1885 A8 1886

Delivery document 1887 The seller must provide the buyer at the seller’s expense with the usual 1888 proof that the goods have been delivered in accordance with A4. Unless 1889 such proof is a transport document, the seller must render assistance to the 1890 buyer at the latter’s request, risk and expense in obtaining a transport 1891 document. 1892

1893 1894 A9 1895

Checking – packaging – marking 1896 The seller must pay the costs of those checking operations (such as 1897 checking quality, measuring, weighing, counting) that are necessary for the 1898 purpose of delivering the goods in accordance with A4 as well as the cost 1899

FAS 60

of any pre-shipment inspection mandated by the authority of the country of 1900 export. 1901

1902 The seller must, at its own expense, package the goods (unless it is usual 1903 for the particular trade to transport the type of goods sold unpackaged) in 1904 the manner required for the transport of the goods arranged by it and, where 1905 applicable, for any subsequent transport to the extent that the circumstances 1906 relating to the transport (for example modalities, destination) are made 1907 known to the seller before the contract of sale is concluded. Packaging is to 1908 be marked appropriately. 1909

1910 1911 A10 1912

Other obligations 1913 The seller must, where applicable, in timely fashion, in timely fashion, in timely fashion, in timely fashion, provide to or render 1914 assistance in obtaining for the buyer, at the latter’s request, risk and 1915 expense, any documents and information, including security-related 1916 information, that the buyer needs for the import of the goods and for their 1917 transport to the final destination. 1918 1919 1920 The seller must reimburse the buyer for all costs and charges incurred by 1921 the buyer in providing or rendering assistance in obtaining documents and 1922 information in accordance with B10. 1923

1924 1925 B THE BUYER’S OBLIGATIONS 1926 1927 B1 1928


1935

FAS 61

1936 B2 1937


1943 1944 B3 1945

Contracts of carriage and insurance 1946 a) Contract of carriage 1947 The buyer must contract at its own expense for the carriage of the goods 1948 from the named port of shipment. 1949 1950 b) Contract of insurance 1951 The buyer owes no obligation to the seller to make a contract of insurance. 1952 However, the buyer must provide the seller, upon request, with the 1953 necessary information for procuring insurance. 1954

1955 1956 B4 1957


1961 1962 B5 1963

Transfer of risks 1964 The buyer must bear all risks of loss of or damage to the goods from the 1965 time they have been delivered in accordance with A4. 1966 1967 Provided that the goods have been set aside or otherwise clearly identified 1968 as the contract goods, the buyer must: 1969 1970 1. should it fail to give notice in accordance with B7, or 1971

FAS 62

1972 2. should the vessel nominated by the buyer fail to arrive on time, or 1973 be unable to take the goods, or close for cargo earlier than the time notified 1974 in accordance with B7, 1975 1976 bear all risks of loss of or damage to the goods from the agreed date or the 1977 expiry date of the agreed period for delivery. 1978

1979 1980 B6 1981

Allocation of costs 1982 The buyer must pay 1983 a) all costs relating to the goods from the time they have been delivered in 1984 accordance with A4 except, where applicable, the costs of customs 1985 formalities necessary for export as well as all duties, taxes, and other 1986 charges payable upon export referred to in A6(b); 1987 1988 b) any additional costs incurred, either because: 1989 (i) the vessel nominated by the buyer fails to arrive on time, or is unable to 1990 take the goods, or closes for cargo earlier than the time notified in 1991 accordance with B7, or 1992 (ii) the buyer has failed to give appropriate notice in accordance with B7, 1993 provided that the goods have been clearly identified as the contract goods; 1994 and 1995 1996 c) where applicable, all duties, taxes and other charges as well as the costs 1997 of carrying out customs formalities payable upon import of the goods and 1998 the costs for their transit through any country. 1999

2000 2001 B7 2002

Notices to the seller 2003 The buyer must give the seller sufficient notice of the vessel name, loading 2004 point and, where necessary, the selected delivery time within the agreed 2005 period. 2006

2007

FAS 63

B8 2008 Proof of delivery 2009 The buyer must accept the proof of delivery provided in accordance with 2010 A8. 2011

2012 2013 B9 2014

Inspection of goods 2015 The buyer must pay the costs of any mandated pre-shipment inspection, 2016 except when such inspection is mandated by the authorities of the country 2017 of export. 2018

2019 2020 B10 2021

Other obligations 2022 The buyer must, in timely fashion, advise the seller of any cargo security 2023 information requirements so that the seller may comply with A10. 2024 2025 The buyer must reimburse the seller for all costs and charges incurred by 2026 the seller in providing or rendering assistance in obtaining documents and 2027 information in accordance with A10. 2028 2029 The buyer must, where applicable, in timely fashion, provide to or render 2030 assistance in obtaining for the seller, at the latter’s request, risk and 2031 expense, any documents and information, including security-related 2032 information, that the seller needs for the transport and export of the goods 2033 and for their transit through any country. 2034

2035 2036

FOB 64

FREE ON BOARD 2037 FOB (insert named port of shipment) Incoterms 2010 2038 2039 GUIDANCE NOTE 2040 2041 This term is to be used only for sea or inland waterway transport. 2042 2043 “Free on Board” means that the seller delivers the goods, or procures the goods 2044 delivered, on board the vessel nominated by the buyer at the named port of 2045 shipment. The buyer has to bear all costs from that point. The risk of loss of or 2046 damage to the goods passes when the goods have passed the ship’s rail, the 2047 buyer bearing all risks from that point. 2048 2049 The FOB term is not appropriate for use where goods are handed over to the 2050 carrier at a point other than the ship’s rail, for example goods in containers, 2051 which are typically delivered at a terminal, or for loading on a roll-on/roll-off or 2052 LASH ship. In such situations, the FCA term should be used. 2053 2054 The seller is required either to deliver the goods on board the vessel or to 2055 procure goods delivered for the destination agreed in the sale contract. The 2056 reference to ‘procure’ here caters for multiple sales down a chain (‘string sales’), 2057 particularly common in the commodity trades. 2058 The FOB term requires the seller to clear the goods for export, where applicable. 2059 However, the seller has no obligation to clear the goods for import or to pay any 2060 import duty or for any customs formalities. 2061 A THE SELLER’S OBLIGATIONS 2062 2063 A1 2064


2072

FOB 65

2073 A2 2074


2079 2080 A3 2081

Contracts of carriage and insurance 2082 a) Contract of carriage 2083 The seller owes no obligation to the buyer to make a contract of carriage. 2084 However, if requested by the buyer or if it is commercial practice and the 2085 buyer does not give an instruction to the contrary in due time, the seller 2086 may contract for carriage on usual terms at the buyer’s risk and expense. In 2087 either case, the seller may decline to make the contract and, if it does, shall 2088 promptly notify the buyer accordingly. 2089 2090 b) Contract of insurance 2091 The seller owes no obligation to the buyer to make a contract of insurance. 2092 However, the seller must provide the buyer, upon request, with information 2093 that the buyer needs for procuring insurance. 2094

2095 2096 A4 2097

Delivery 2098 The seller must deliver the goods, or procure goods delivered, by placing 2099 them on board the vessel nominated by the buyer at the loading point, if 2100 any, indicated by the buyer at the named port of shipment on the agreed 2101 date or within the agreed period and in the manner customary at the port. 2102 2103 If no specific loading point has been indicated by the buyer, the seller may 2104 select the point that best suits its purpose. 2105 2106

2107 A5 2108

FOB 66


2112 2113 A6 2114

Allocation of costs 2115 The seller must, subject to the provisions of B6, pay 2116 a) all costs relating to the goods until they have been delivered in 2117 accordance with A4; and 2118 2119 b) where applicable, the costs of customs formalities necessary for export 2120 as well as all duties, taxes, and other charges payable upon export. 2121

2122 2123 A7 2124

Notices to the buyer 2125 Where a period for delivery has been agreed in accordance with A4, the 2126 seller must give the buyer reasonable notice of the date on which and, as the 2127 case may be, the point at which the goods will be delivered in accordance 2128 with A4. 2129 2130 When the goods are on board the vessel nominated by the buyer, the seller 2131 must notify the buyer of that fact without delay. Should the vessel 2132 nominated by the buyer fail to take the goods within the time agreed, the 2133 seller must notify the buyer of that fact without delay. 2134

2135 2136 A8 2137

Delivery document 2138 The seller must provide the buyer at the seller’s expense with the usual 2139 proof that the goods have been delivered in accordance with A4. 2140 2141 Unless such proof is a transport document, the seller must render assistance 2142 to the buyer at the latter’s request, risk and expense in obtaining a transport 2143 document. 2144

FOB 67

2145 2146 A9 2147

Checking – packaging – marking 2148 The seller must pay the costs of those checking operations (such as 2149 checking quality, measuring, weighing, counting) that are necessary for the 2150 purpose of delivering the goods in accordance with A4 as well as the cost 2151 of any pre-shipment inspection mandated by the authority of the country of 2152 export. 2153 2154 The seller must, at its own expense, package the goods (unless it is usual 2155 for the particular trade to transport the type of goods sold unpackaged) in 2156 the manner required for the transport of the goods arranged by it and, where 2157 applicable, for any subsequent transport to the extent that the circumstances 2158 relating to the transport (for example modalities, destination) are made 2159 known to the seller before the contract of sale is concluded. Packaging is to 2160 be marked appropriately. 2161

2162 2163 A10 2164

Other obligations 2165 The seller must, where applicable, in timely fashion, in timely fashion, in timely fashion, in timely fashion, provide to or render 2166 assistance in obtaining for the buyer, at the latter’s request, risk and 2167 expense, any documents and information, including security-related 2168 information, that the buyer needs for the import of the goods and for their 2169 transport to the final destination. 2170 2171 2172 The seller must reimburse the buyer for all costs and charges incurred by 2173 the buyer in providing or rendering assistance in obtaining documents and 2174 information in accordance with B10. 2175

2176 2177 B THE BUYER’S OBLIGATIONS 2178 2179 B1 2180

FOB 68


2184 Any document referred to in B1 –B10 may be replaced by an equivalent 2185 electronic record if agreed between the parties or customary. 2186

. 2187 2188 B2 2189


2195 2196 B3 2197

Contracts of carriage and insurance 2198 a) Contract of carriage 2199 The buyer must contract at its own expense for the carriage of the goods 2200 from the named port of shipment. 2201 2202 b) Contract of insurance 2203 The buyer owes no obligation to the seller to make a contract of insurance. 2204 However, the buyer must provide the seller, upon request, with the 2205 necessary information for procuring insurance. 2206

2207 2208 B4 2209


2213 2214 B5 2215

Transfer of risks 2216

FOB 69

The buyer must bear all risks of loss of or damage to the goods from the 2217 time they have been delivered in accordance with A4. 2218

2219 Provided that the goods have been set aside or otherwise clearly identified 2220 as the contract goods, the buyer must: 2221 2222 1. should it fail to notify the nomination of a vessel for transport in 2223 accordance with B7, or 2224 2. should the vessel nominated by the buyer for transport fail to arrive 2225 within to enable the seller to comply with A4 or be unable to take the 2226 goods, or close for cargo earlier than the time notified in accordance with 2227 B7, 2228

bear all risks of loss of or damage to the goods: 2229 (a) from the agreed date, or in the absence of an agreed date, 2230 (b) from the date notified by the seller under A7 within the agreed period 2231 or, if no such date has been notified, 2232 (c) from the expiry date of any agreed period for delivery. 2233

2234 2235 B6 2236

Allocation of costs 2237 The buyer must pay 2238 a) all costs relating to the goods from the time they have been delivered in 2239 accordance with A4 except where applicable, the costs of customs 2240 formalities necessary for export as well as all duties, taxes, and other 2241 charges payable upon export referred to in A6(b); 2242 2243 b) any additional costs incurred, either because: 2244 (i) the vessel nominated by the buyer fails to arrive on time, or is unable to 2245 take the goods, or closes for cargo earlier than the time notified in 2246 accordance with B7, or 2247 (ii) the buyer has failed to give appropriate notice in accordance with B7, 2248 provided that the goods have been clearly identified as the contract goods; 2249 and 2250 2251

FOB 70

c) where applicable, all duties, taxes and other charges as well as the costs 2252 of carrying out customs formalities payable upon import of the goods and 2253 the costs for their transit through any country. 2254

2255 2256 B7 2257

Notices to the seller 2258 The buyer must give the seller sufficient notice of the vessel name, loading 2259 point and, where necessary, the selected delivery time within the agreed 2260 period 2261 2262

2263 B8 2264


2268 2269 B9 2270


2275 2276 B10 2277

Other obligations 2278 The buyer must, in timely fashion, advise the seller of any cargo security 2279 information requirements so that the seller may comply with A10. 2280 2281 The buyer must reimburse the seller for all costs and charges incurred by 2282 the seller in providing or rendering assistance in obtaining documents and 2283 information in accordance with A10. 2284 2285 The buyer must, where applicable, in timely fashion, provide to or render 2286 assistance in obtaining for the seller, at the latter’s request, risk and 2287

FOB 71

expense, any documents and information, including security-related 2288 information, that the seller needs for the transport and export of the goods 2289 and for their transit through any country. 2290

CFR 72

COST AND FREIGHT 2291 CFR (insert named port of destination) Incoterms 2010 2292 2293 GUIDANCE NOTE 2294 This term is to be used only for sea or inland waterway transport. 2295 “Cost and Freight” means that the seller delivers the goods, or procures the 2296 goods delivered, on board the vessel at the port of shipment. The seller must pay 2297 the costs and freight necessary to bring the goods to the named port of 2298 destination. The risk of loss of or damage to the goods passes when the goods 2299 have passed the ship’s rail, the buyer bearing all risks from that point. 2300 2301 This term has two critical points because risk passes and costs are transferred at 2302 different points. While the contract will always specify a destination port, it 2303 might not specify the port of shipment and that is the place at which risk passes 2304 to the buyer across the ship’s rail. If this port is of particular interest to the 2305 buyer, the parties are well advised to identify it as precisely as possible in the 2306 contract. 2307 The contract will always give a destination port but the parties are also well 2308 advised to identify as precisely as possible the point at the agreed port of 2309 destination, as the costs to that point are for the account of the seller. The seller 2310 is advised to procure contracts of carriage that match that choice precisely. If the 2311 seller incurs costs under its contract of carriage such as those related to 2312 unloading at the specified point at the port of destination agreed in the sale 2313 contract, the seller is not entitled to recover such costs from the buyer unless 2314 otherwise agreed between the parties. 2315 The seller is required either to deliver the goods to the carrier or to procure 2316 goods delivered for the destination agreed in the sale contract. In addition the 2317 seller is required either to make a contract of carriage or to procure such a 2318 contract. The reference to ‘procure’ here caters for multiple sales down a chain 2319 (‘string sales’), particularly common in the commodity trades. 2320 The CFR term is not appropriate for use where goods are handed over to the 2321 carrier at a point other than the ship’s rail, for example goods in containers, 2322 which are typically delivered at a terminal, or for loading on a roll-on/roll-off or 2323 LASH ship. In such circumstances, the CPT term should be used. 2324 2325

CFR 73

The CFR term requires the seller to clear the goods for export, where applicable. 2326 However, the seller has no obligation to clear the goods for import or to pay any 2327 import duty or for any customs formalities. 2328 2329 2330 A THE SELLER’S OBLIGATIONS 2331 A1 2332


2341 A2 2342


2347 2348 A3 2349

Contracts of carriage and insurance 2350 a) Contract of carriage 2351 The seller must contract or procure a contract for the carriage of the goods 2352 on usual terms at its own expense from the place of delivery, or, if agreed, 2353 the point of delivery, to the named port of destination. The contract of 2354 carriage must be made on usual terms at the seller’s expense and provide 2355 for carriage by the usual route in a seagoing vessel (or inland waterway 2356 vessel, as the case may be) of the type normally used for the transport of 2357 the type of goods sold. 2358 b) Contract of insurance 2359

CFR 74

The seller owes no obligation to the buyer to make a contract of insurance. 2360 However, the seller must provide the buyer, upon request, with information 2361 that the buyer needs for procuring insurance. 2362

2363 2364 A4 2365

Delivery 2366 The seller must deliver the goods, or procure goods delivered, on board the 2367 vessel at the port of shipment on the agreed date or within the agreed 2368 period. 2369 2370

2371 A5 2372

Transfer of risks 2373 The seller must, subject to the provisions of B5, bear all risks of loss of or 2374 damage to the goods until they have been delivered in accordance with A4.2375 2376 2377

A6 2378 Allocation of costs 2379 The seller must, subject to the provisions of B6, pay 2380 a) all costs relating to the goods until they have been delivered in 2381 accordance with A4; and 2382 b) the freight and all other costs resulting from A3 a), including the costs 2383 of loading the goods on board and any charges for unloading at the agreed 2384 port of discharge that were for the seller’s account under the contract of 2385 carriage; and 2386 c) where applicable, the costs of customs formalities necessary for export 2387 as well as all duties, taxes and other charges payable upon export, and the 2388 costs for their transit through any country that were for the seller’s account 2389 under the contract of carriage. 2390 2391

2392 A7 2393

Notices to the buyer 2394

CFR 75

The seller must give the buyer any notice needed in order to allow the 2395 buyer to take measures that are normally necessary to enable the buyer to 2396 take the goods. 2397

2398 2399 A8 2400

Delivery document 2401 The seller must at its own expense provide the buyer without delay with the 2402 usual transport document for the agreed port of destination. 2403 This document must cover the contract goods, be dated within the period 2404 agreed for shipment, enable the buyer to claim the goods from the carrier at 2405 the port of destination and, unless otherwise agreed, enable the buyer to sell 2406 the goods in transit by the transfer of the document to a subsequent buyer 2407 or by notification to the carrier. 2408 When such a transport document is issued in negotiable form and in several 2409 originals, a full set of originals must be presented to the buyer. 2410 2411

2412 A9 2413


2427 2428 A10 2429

Other obligations 2430

CFR 76

The seller must, where applicable, in timely fashion, in timely fashion, in timely fashion, in timely fashion, provide to or render 2431 assistance in obtaining for the buyer, at the latter’s request, risk and 2432 expense, any documents and information, including security-related 2433 information, that the buyer needs for the import of the goods and for their 2434 transport to the final destination. 2435 2436 2437 The seller must reimburse the buyer for all costs and charges incurred by 2438 the buyer in providing or rendering assistance in obtaining documents and 2439 information in accordance with B10. 2440 2441


General obligations of the buyer 2445 The buyer must pay the price of the goods as provided in the contract of 2446 sale. 2447 2448 Any document referred to in B1 –B10 may be replaced by an equivalent 2449 electronic record if agreed between the parties or customary. 2450 2451

2452 B2 2453


2459 2460 B3 2461

Contracts of carriage and insurance 2462 a) Contract of carriage 2463 The buyer owes no obligation to the seller to make a contract of carriage. 2464

2465 b) Contract of insurance 2466

CFR 77

The buyer owes no obligation to the seller to make a contract of insurance. 2467 However, the buyer must provide the seller, upon request, with the 2468 necessary information for procuring insurance. 2469 2470 2471

B4 2472 Taking delivery 2473 The buyer must take delivery of the goods when they have been delivered 2474 in accordance with A4 and receive them from the carrier at the named port 2475 of destination. 2476 2477 2478

B5 2479 Transfer of risks 2480 The buyer must bear all risks of loss of or damage to the goods from the 2481 time they have been delivered in accordance with A4. 2482 Should the buyer fail to give notice in accordance with B7, it must bear all 2483 risks of loss of or damage to the goods from the agreed date or the expiry 2484 date of the agreed period for shipment, provided that the goods have been 2485 set aside or otherwise clearly identified as the contract goods. 2486

2487 2488 B6 2489

Allocation of costs 2490 The buyer must, subject to the provisions of A3 a), pay 2491 a) all costs relating to the goods from the time they have been delivered in 2492 accordance with A4 except, where applicable, the costs of customs 2493 formalities necessary for export as well as all duties, taxes, and other 2494 charges payable upon export referred to in A6(c); 2495 2496 b) all costs and charges relating to the goods while in transit until their 2497 arrival at the port of destination, unless such costs and charges were for the 2498 seller’s account under the contract of carriage; 2499 2500

CFR 78

c) unloading costs including lighterage and wharfage charges, unless such 2501 costs and charges were for the seller’s account under the contract of 2502 carriage; 2503 2504 d) all additional costs incurred if it fails to give notice in accordance with 2505 B7, for the goods from the agreed date or the expiry date of the agreed 2506 period for shipment, provided that the goods have been clearly identified as 2507 the contract goods; and 2508 2509 e) where applicable, all duties, taxes and other charges as well as the costs 2510

of carrying out customs formalities payable upon import of the goods 2511 and the costs for their transit through any country unless included within 2512 the cost of the contract of carriage. 2513

2514 2515 B7 2516

Notices to the seller 2517 The buyer must, whenever it is entitled to determine the time for shipping 2518 the goods and/or the point at the named port of destination, give the seller 2519 sufficient notice thereof. 2520

2521 2522 B8 2523

Proof of delivery 2524 The buyer must accept the transport document provided in accordance with 2525 A8 if it is in conformity with the contract. 2526 2527

2528 B9 2529


2534 2535 B10 2536

CFR 79

Other obligations 2537 The buyer must, in timely fashion, advise the seller of any cargo security 2538 information requirements so that the seller may comply with A10. 2539 The buyer must reimburse the seller for all costs and charges incurred by 2540 the seller in providing or rendering assistance in obtaining documents and 2541 information in accordance with A10. 2542 The buyer must, where applicable, in timely fashion, provide to or render 2543 assistance in obtaining for the seller, at the latter’s request, risk and 2544 expense, any documents and information, including security-related 2545 information, that the seller needs for the transport and export of the goods 2546 and for their transit through any country. 2547 2548

CIF 80

COST INSURANCE AND FREIGHT 2549 CIF (insert named port of destination) Incoterms 2010 2550 2551 GUIDANCE NOTE 2552 This term is to be used only for sea or inland waterway transport. 2553 2554 “Cost, Insurance and Freight” means that the seller delivers the goods, or 2555 procures the goods delivered, on board the vessel at the port of shipment. The 2556 seller must pay the costs and freight necessary to bring the goods to the named 2557 port of destination. The risk of loss of or damage to the goods passes when the 2558 goods have passed the ship’s rail, the buyer bearing all risks from that point. The 2559 seller contracts for insurance cover against the buyer’s risk of loss of or damage 2560 to the goods during the carriage. 2561 The buyer should note that under the CIF term the seller is required to obtain 2562 insurance on minimum cover. Should the buyer wish to have more insurance 2563 protection, it would need either to agree as much expressly with the seller or to 2564 make its own extra insurance arrangements. 2565 This term has two critical points because risk passes and costs are transferred at 2566 different points. While the contract will always specify a destination port, it 2567 might not specify the port of shipment and that is the place at which risk passes 2568 to the buyer across the ship’s rail. If this port is of particular interest to the 2569 buyer, the parties are well advised to identify it as precisely as possible in the 2570 contract. 2571 The contract will always give a destination port but the parties are also well 2572 advised to identify as precisely as possible the point at the agreed port of 2573 destination, as the costs to that point are for the account of the seller. The seller 2574 is advised to procure contracts of carriage that match that choice precisely. If the 2575 seller incurs costs under its contract of carriage such as those related to 2576 unloading at the specified point at the port of destination agreed in the sale 2577 contract, the seller is not entitled to recover such costs from the buyer unless 2578 otherwise agreed between the parties. 2579 2580 The seller is required either to deliver the goods to the carrier or to procure 2581 goods delivered for the destination agreed in the sale contract. In addition the 2582 seller is required either to make a contract of carriage or to procure such a 2583

CIF 81

contract. The reference to ‘procure’ here caters for multiple sales down a chain 2584 (‘string sales’), particularly common in the commodity trades. 2585 The CIF term is not appropriate for use where goods are handed over to the 2586 carrier at a point other than the ship’s rail, for example goods in containers, 2587 which are typically delivered at a terminal, or for loading on a roll-on/roll-off or 2588 LASH ship. In such circumstances, the CIP term should be used. 2589 2590 The CIF term requires the seller to clear the goods for export, where applicable. 2591 However, the seller has no obligation to clear the goods for import or to pay any 2592 import duty or for any customs formalities. 2593 2594 2595 A THE SELLER’S OBLIGATIONS 2596 2597 A1 2598


2607 A2 2608

Licences, authorizations, security clearances and other formalities 2609 Where applicable, the seller must obtain at its own risk and expense any 2610 export licence or other official authorization and carry out all customs 2611 formalities necessary for the export of the goods. 2612 2613

2614 A3 2615

Contracts of carriage and insurance 2616 a) Contract of carriage 2617 The seller must contract or procure a contract for the carriage of the goods 2618 on usual terms at its own expense from the place of delivery, or, if agreed, 2619

CIF 82

the point of delivery, to the named port of destination. The contract of 2620 carriage must be made on usual terms at the seller’s expense and provide 2621 for carriage by the usual route in a seagoing vessel (or inland waterway 2622 vessel, as the case may be) of the type normally used for the transport of 2623 the type of goods sold. 2624 b) Contract of insurance 2625 The seller must obtain at its own expense cargo insurance complying at 2626 least with the minimum cover provided by Clauses (C) of the Institute 2627 Cargo Clauses (LMA/IUA) or any similar set of clauses. The insurance 2628 shall be contracted with underwriters or an insurance company of good 2629 repute and entitle the buyer, or any other person having an insurable 2630 interest in the goods, to claim directly from the insurer. 2631 When required by the buyer, the seller shall, subject to the buyer providing 2632 any necessary information requested by the seller, provide at the buyer’s 2633 expense any cover, if procurable, complying with the Institute War Clauses 2634 and/or Institute Strikes Clauses (LMA/IUA) or any similar set of clauses. 2635 In any event, the insurance shall cover, at a minimum, the price provided in 2636 the contract plus ten per cent (i.e., 110%) and shall be in the currency of the 2637 contract. 2638 The duration of the insurance cover will start no later than the point of 2639 delivery set out in A4 and A5 and continue at least until the goods have 2640 reached the named port of destination. 2641 The seller must provide the buyer with the insurance policy or other 2642 evidence of insurance cover. 2643 Moreover, the seller must provide the buyer, upon request, with 2644 information that the buyer needs to procure any additional insurance. 2645 2646

2647 A4 2648

Delivery 2649 The seller must deliver the goods, or procure goods delivered, on board the 2650 vessel at the port of shipment on the agreed date or within the agreed 2651 period. 2652 2653

2654 A5 2655

CIF 83

Transfer of risks 2656 The seller must, subject to the provisions of B5, bear all risks of loss of or 2657 damage to the goods until they have been delivered in accordance with A4. 2658 2659 2660

A6 2661 Allocation of costs 2662 The seller must, subject to the provisions of B6, pay 2663 a) all costs relating to the goods until they have been delivered in 2664 accordance with A4; 2665 2666 b) the freight and all other costs resulting from A3 a), including the costs 2667 of loading the goods on board and any charges for unloading at the agreed 2668 port of discharge that were for the seller’s account under the contract of 2669 carriage; 2670 2671 c) the costs of insurance resulting from A3 b); and 2672 2673 d) where applicable, the costs of customs formalities necessary for export 2674 as well as all duties, taxes and other charges payable upon export, and the 2675 costs for their transit through any country that were for the seller’s account 2676 under the contract of carriage. 2677

2678 2679 A7 2680


2686 A8 2687

Delivery document 2688 The seller must at its own expense provide the buyer without delay with the 2689 usual transport document for the agreed port of destination. 2690

CIF 84

This document must cover the contract goods, be dated within the period 2691 agreed for shipment, enable the buyer to claim the goods from the carrier at 2692 the port of destination and, unless otherwise agreed, enable the buyer to sell 2693 the goods in transit by the transfer of the document to a subsequent buyer 2694 or by notification to the carrier. 2695 When such a transport document is issued in negotiable form and in several 2696 originals, a full set of originals must be presented to the buyer. 2697

2698 2699 A9 2700


2714 2715 A10 2716

Other obligations 2717 The seller must, where applicable, in tin tin tin timely fashion, imely fashion, imely fashion, imely fashion, provide to or render 2718 assistance in obtaining for the buyer, at the latter’s request, risk and 2719 expense, any documents and information, including security-related 2720 information, that the buyer needs for the import of the goods and for their 2721 transport to the final destination. 2722 2723 2724

CIF 85

The seller must reimburse the buyer for all costs and charges incurred by 2725 the buyer in providing or rendering assistance in obtaining documents and 2726 information in accordance with B10. 2727 2728 2729



B2 2741 Licences, authorizations, security clearances and other formalities 2742 Where applicable, it is up to the buyer to obtain at its own risk and expense 2743 any import licence or other official authorization and carry out all customs 2744 formalities for the import of the goods and for their transit through any 2745 country. 2746

2747 2748 B3 2749

Contracts of carriage and insurance 2750 a) Contract of carriage 2751 The buyer owes no obligation to the seller to make a contract of carriage. 2752 2753 b) Contract of insurance 2754 The buyer owes no obligation to the seller to make a contract of insurance. 2755 However, the buyer must provide the seller, upon request, with any 2756 information necessary for the seller to procure any additional insurance 2757 requested by the buyer in accordance with A3. 2758

2759 2760

CIF 86

B4 2761 Taking delivery 2762 The buyer must take delivery of the goods when they have been delivered 2763 in accordance with A4 and receive them from the carrier at the named port 2764 of destination. 2765 2766

2767 B5 2768

Transfer of risks 2769 The buyer must bear all risks of loss of or damage to the goods from the 2770 time they have been delivered in accordance with A4. 2771 Should the buyer fail to give notice in accordance with B7, it must bear all 2772 risks of loss of or damage to the goods from the agreed date or the expiry 2773 date of the agreed period for shipment, provided that the goods have been 2774 set aside or otherwise clearly identified as the contract goods. 2775

2776 2777 B6 2778

Allocation of costs 2779 The buyer must, subject to the provisions of A3 a), 2780 a) all costs relating to the goods from the time they have been delivered in 2781 accordance with A4 except, where applicable, the costs of customs 2782 formalities necessary for export as well as all duties, taxes, and other 2783 charges payable upon export referred to in A6(d); 2784 2785 b) all costs and charges relating to the goods while in transit until their 2786 arrival at the port of destination, unless such costs and charges were for the 2787 seller’s account under the contract of carriage; 2788 2789 c) unloading costs including lighterage and wharfage charges, unless such 2790 costs and charges were for the seller’s account under the contract of 2791 carriage; 2792 2793 d) all additional costs incurred if it fails to give notice in accordance with 2794 B7, for the goods from the agreed date or the expiry date of the agreed 2795

CIF 87

period for shipment, provided that the goods have been clearly identified as 2796 the contract goods; 2797 2798 e) where applicable, all duties, taxes and other charges as well as the costs 2799 of carrying out customs formalities payable upon import of the goods and 2800 the costs for their transit through any country unless included within the 2801 cost of the contract of carriage; and 2802 f) The costs of any additional insurance procured at the buyer’s request 2803 under A3 and B3. 2804 2805

2806 B7 2807

Notices to the seller 2808 The buyer must, whenever it is entitled to determine the time for shipping 2809 the goods and/or the point at the named port of destination, give the seller 2810 sufficient notice thereof. 2811 2812

2813 B8 2814

Proof of delivery 2815 The buyer must accept the transport document provided in accordance with 2816 A8 if it is in conformity with the contract. 2817

2818 2819 B9 2820


2825 2826 B10 2827

Other obligations 2828 The buyer must, in timely fashion, advise the seller of any cargo security 2829 information requirements so that the seller may comply with A10. 2830

CIF 88

The buyer must reimburse the seller for all costs and charges incurred by 2831 the seller in providing or rendering assistance in obtaining documents and 2832 information in accordance with A10. 2833 The buyer must, where applicable, in timely fashion, provide to or render 2834 assistance in obtaining for the seller, at the latter’s request, risk and 2835 expense, any documents and information, including security-related 2836 information, that the seller needs for the transport and export of the goods 2837 and for their transit through any country. 2838

DEQ 89

DELIVERED EX QUAY 2839 DEQ (insert named port of destination) Incoterms 2010 2840 2841 GUIDANCE NOTE 2842 This term is to be used only when the goods are to be delivered by sea or inland 2843 waterway and discharged from a vessel onto the quay (wharf) at the port of 2844 destination. 2845 “Delivered Ex Quay” means that the seller delivers when the goods are placed at 2846 the disposal of the buyer not cleared for import on the quay (wharf) at the named 2847 port of destination. The seller has to bear costs and risks involved in bringing the 2848 goods to the named port of destination and in discharging the goods on the quay 2849 (wharf). 2850 Moreover, if the parties wish to include in the seller’s obligations the risks and 2851 costs of the handling of the goods from the quay to another place (warehouse, 2852 terminal, transport station, etc.) in or outside the port, the DAP or DDP terms 2853 should be used. 2854 The DEQ term requires the seller to clear the goods for export, where 2855 applicable. However, the seller has no obligation to clear the goods for import or 2856 to pay any import duty or for any customs formalities. 2857 2858 2859 A THE SELLER’S OBLIGATIONS 2860 2861 A1 2862

General obligations of the seller 2863 The seller must provide the goods and the commercial invoice in 2864 conformity with the contract of sale and any other evidence of conformity 2865 that may be required by the contract. 2866 2867 Any document referred to in A1 –A10 may be replaced by an equivalent 2868 electronic record if agreed between the parties or customary. 2869 2870 2871

A2A2A2A2 2872 Licences, authorizations, security clearances and other formalities 2873

DEQ 90

Where applicable, the seller must obtain at its own risk and expense any 2874 export licence and other official authorization and carry out all customs 2875 formalities necessary for the export of the goods and for their transit 2876 through any country other than the country of destination. 2877

2878 2879 A3 2880

Contracts of carriage and insurance 2881 a) Contract of carriage 2882 The seller must contract at its own expense for the carriage of the goods to 2883 the named quay (wharf) at the named port of destination. If a specific quay 2884 (wharf) is not agreed or is not determined by practice, the seller may select 2885 the quay (wharf) at the named port of destination that best suits its purpose. 2886 b) Contract of insurance 2887 The seller owes no obligation to the buyer to make a contract of insurance. 2888 However, the seller must provide the buyer, upon request, with information 2889 that the buyer needs for procuring insurance. 2890

2891 2892 A4 2893

Delivery 2894 The seller must deliver the goods by placing them at the disposal of the 2895 buyer on the quay (wharf) referred to in A3 a) at the named port of 2896 destination, on the agreed date or within the agreed period. 2897

2898 2899 A5 2900


2905 A6 2906

Allocation of costs 2907 The seller must, subject to the provisions of B6, pay 2908

DEQ 91

a) in addition to costs resulting from A3 a), all costs relating to the goods 2909 until they have been delivered on the quay (wharf) in accordance with A4; 2910 and 2911 b) where applicable, the costs of customs formalities necessary for export 2912 as well as all duties, taxes and other charges payable upon export and the 2913 costs for their transit through any country prior to delivery in accordance 2914 with A4. 2915 2916 2917

A7 2918 Notices to the buyer 2919 The seller must give the buyer any notice needed in order to allow the 2920 buyer to take measures that are normally necessary to enable the buyer to 2921 take delivery of the goods. 2922

2923 2924 A8 2925

Delivery document 2926 The seller must provide the buyer at the seller’s expense with a document 2927 enabling the buyer to take delivery of the goods in accordance with A4/B4. 2928

2929 2930 A9 2931


DEQ 92

2945 A10 2946

Other obligations 2947 The seller must, where applicable, in timely fashion, provide to or render 2948 assistance in obtaining for the buyer, at the latter’s request, risk and 2949 expense, any documents and information, including security-related 2950 information, that the buyer needs for the import of the goods and for their 2951 transport to the final destination. 2952 2953 The seller must reimburse the buyer for all costs and charges incurred by 2954 the buyer in providing or rendering assistance in obtaining documents and 2955 information in accordance with B10. 2956 2957

2958 B THE BUYER’S OBLIGATIONS 2959 B1 2960


B2 2969 Licences, authorizations, security clearances and other formalities 2970 Where applicable, the buyer must obtain at its own risk and expense any 2971 import licence or other official authorization and carry out all customs 2972 formalities for the import of the goods. 2973

2974 2975 B3 2976

Contracts of carriage and insurance 2977 a) Contract of carriage 2978 The buyer owes no obligation to the seller to make a contract of carriage. 2979 2980

DEQ 93

b) Contract of insurance 2981 The buyer owes no obligation to the seller to make a contract of 2982 insurance. However, the buyer must provide the seller, upon request, with 2983 the necessary information for procuring insurance. 2984

2985 2986 B4 2987

Taking delivery 2988 The buyer must take delivery of the goods when they have been delivered 2989 in accordance with A4. 2990 2991 2992

B5 2993 Transfer of risks 2994 The buyer must bear all risks of loss of or damage to the goods from the 2995 time they have been delivered in accordance with A4. 2996 Provided that the goods have been set aside or otherwise clearly identified 2997 as the contract goods, the buyer must: 2998 1. should it fail to fulfil its obligations in accordance with B2, bear all 2999 resulting risks of loss of or damage to the goods incurred thereby; and 3000 2. should it fail to give notice in accordance with B7, bear all risks of 3001 loss of or damage to the goods from the agreed date or the expiry date of 3002 the agreed period for delivery. 3003

3004 3005 B6 3006

Allocation of costs 3007 The buyer must pay 3008 a) all costs relating to the goods from the time they have been delivered in 3009 accordance with A4, including any costs of handling the goods in the 3010 named port of destination for subsequent transport or storage in warehouse 3011 or terminal; and 3012 b) all additional costs incurred if it fails to fulfil its obligations in 3013 accordance with B2, or to give notice in accordance with B7, provided that 3014 the goods have been clearly identified as the contract goods; and 3015

DEQ 94

c) where applicable, the costs of customs formalities as well as all duties, 3016 taxes and other charges payable upon import of the goods. 3017

3018 3019 B7 3020

Notices to the seller 3021 The buyer must, whenever it is entitled to determine the time within an 3022 agreed period and/or the point of taking delivery at the named port of 3023 destination, give the seller sufficient notice thereof. 3024

3025 3026 B8 3027


3031 3032 B9 3033

Inspection of goods 3034 The buyer must pay the costs of any mandated pre-shipment inspection 3035 except when such inspection is mandated by the authorities of the country 3036 of export. 3037 3038 3039

B10 3040 Other obligations 3041 The buyer must, in timely fashion, advise the seller of any cargo security 3042 information requirements so that the seller may comply with A10. 3043 3044 The buyer must reimburse the seller for all costs and charges incurred by 3045 the seller in providing or rendering assistance in obtaining documents and 3046 information in accordance with A10. 3047 3048 The buyer must, where applicable, in timely fashion, provide to or render 3049 assistance in obtaining for the seller, at the latter’s request, risk and 3050 expense, any documents and information, including security-related 3051

DEQ 95

information, that the seller needs for the transport and export of the goods 3052 and for their transit through any country. 3053 3054

99rev4 Incoterms 2010 3rd draft - CLEAN - 21 Jan 2010x · 106 “FCA (38 Cours Albert 1er, Paris,...

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Transcript of 99rev4 Incoterms 2010 3rd draft - CLEAN - 21 Jan 2010x · 106 “FCA (38 Cours Albert 1er, Paris,...