Guide to Incoterms 2000

8/14/2019 Guide to Incoterms 2000

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Guide to Incoterms 2000

Incoterms 2000 are a set of internationally recognised trading terms, defined by

the International Chamber of Commerce in publication number 560 Incoterms

2000, which are used for the purchase and shipping of goods across borders.

They deal with the documents required for global trade, specifying which

parties (buyer or seller) are responsible for which documents and are normally

specified in the contract of sale.

This guide is designed to provide a simplified reference. We recommend thatthe full text of the above document be consulted prior to entering into a

contract to buy or sell goods.

Contents

ACE European Marine Group .......................................................................................2

EX Works (The named point of destination).................................................................3

Free Carrier FCA (The named place) ......................................................4

Free Alongside Ship FAS (the named port of shipment)..............................................5

Free on Board FOB (The named port of shipment).......................................................6

Cost and Freight CFR (The named port of destination ) ...............................................7

Cost Insurance and Freight CIF (The named port of destination) .................................8

Carriage Paid To CPT (The named place of destination)..............................................9

Carriage Insurance Paid To CIP (The agreed place of destination).............................10

Delivered At Frontier DAF (The named place of destination)....................................11

Delivered ex Ship DES (The named port of destination) ............................................12

ACE Insurance S.A.-N.V.

ACE Building

100 Leadenhall Street

London EC3A 3BP


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ACE European Marine Group

In 1792, the Insurance Company of North America

(INA) insured the proud ship America as she

navigated the wintry seas from Philadelphia toLondonderry. Risk Management services were

provided by hiring a tug to assist the vessel to leave the

Delaware River safely.

In 1999, ACE Insurance purchased the successor

companies to the INA and continues the superior

tradition of marine insurance, risk management and

loss control services to its clients.

In 2001 ACE European Group was created combining

the businesses of ACE Global Markets and ACE

Insurance Company of Europe. The Marine business of

these two companies is combined under onemanagement but allows our customers to access two

distribution channels, Lloyds and the company market.

ACE European Marine Group employs a team of

transportation professionals with experience in

shipping, ship management, freight forwarding, andcontainer operations. They are assisted by surveyors

from other ACE worldwide companies (USA, Asia

Pacific, Latin America), the ACE network of marine

underwriters and claims adjusters and a panel of

independent survey agents


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EX Works (The named point of destination)

Type of Transport : Multi-Modal Type of Sale : On DepartureThe Seller must The Buyer must

Supplying Goods/Payment

Supply goods, invoice and certificates in

accordance with sales contract

Pay the price agreed upon in the sales contract

Licences, Authorizations and Formalities

Assist the buyer in obtaining licences and

authorisations for export.

Obtain licences for export and import at his own

risk and cost

Transport and Insurance Contract

No obligation No obligation

Delivery/Delivery Price

Place the goods at the disposal of the buyer at the

named place of delivery

Receive the goods at the named place of delivery

Transfer of Risks

Carry all Risks up to named place of delivery. Carry all risks and damage to goods from namedplace of delivery.

Division of Costs

Carry all costs to named place of delivery. Pay all expenses from named place of delivery

plus duties/charges/taxes for import and export.

Notification

Quickly provide the buyer with the availability

and place of goods.

Provide the seller with date and transfer, if

stipulated in the contract.

Proof of Delivery

No Obligation Supply the seller the proof of transfer of the

goods.

Verification of Packaging/ Goods Inspection.

Expenses for verifying, packaging, marking of

goods.

Expenses for inspection of goods before

departure.

Other Obligations

Help the buyer obtain all information forinsurance and all documents for import and

transit.

Pay all expenses anticipated in obtaininginformation for insurance and documents for

import and transit.


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Free Carrier

FCA (The named place)Type of Transport : Multi-Modal Type of Sale : On Departure

The Seller must The Buyer must





Licences, Authorizations and FormalitiesObtain licences and authorisations for exporting

the goods, at own risk and cost.

Obtain licences and authorisations for importing

the goods, at own risk and cost.


Transport:No obligation unless there is an

agreement with the buyer. Insurance No

obligation.

Transport contract at his own cost, unless there is

an agreement with seller. Insurance- No

obligation


Deliver the goods to the carrier (the agreed

date/the named point)

Receive the goods at the named point.

Transfer of Risks

Carry all Risks up to named point. Carry all risks of loss and damage to goods from

the named point, with exceptions.

Division of Costs

Carry all costs to named point. Pay various

customs formalities/duties/taxes for export.

Pay all costs from named point.

Notification

Quickly provide the buyer with the potential date

of transfer of goods to the carrier.

Provide the seller with carriers name and possibly

with mode of transport//date/delivery time.

Proof of Delivery

Supply certificate of delivery at own cost. Assist

the buyer in obtaining all transport documents.

Accept proof of delivery..


Pay expenses for verifying, packaging, marking

of goods.

Pay expenses for inspection of goods before

departure.

Other Obligations

Help the buyer obtain all documents for

importation, or transit through a third country and

ll i f ti f bt i i i

Pay all costs anticipated in obtaining information

for insurance importation and transit documents.

S l th ll ith i f ti f th


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Free Alongside Ship

FAS (the named port of shipment)Type of Transport : Maritime Type of Sale : On Departure






Licences, Authorizations and FormalitiesObtain at own risk and expense any export

licence and complete all customs formalities

for export.

Obtain at own risk and expense any import licence

and complete all customs formalities for import and

for the transit of goods through a third country.


Transport -No obligation, Insurance-No

obligation

Transport contract, at own cost from port of departure.

Insurance No obligation.


Deliver the goods alongside the vessel (the

named port/the named date)

Receive the goods alongside the vessel (named

port/named date)

Transfer of Risks

Carry all Risks up to alongside vessel. Carry all risks of loss and damage to goods from

alongside vessel with exceptions..

Division of Costs

Carry all costs to alongside vessel plus

customs duties, taxes payable on export.

Carry all costs from alongside vessel plus

duties/charges/taxes payable on import.Notification

Quickly provide the buyer with the place and

time of delivery alongside the vessel.

Provide the seller with the vessel name, named port of

shipment, date of delivery within a reasonable

amount of time.

Proof of Delivery

Supply certificate of delivery at own cost

(alongside vessel) and help the buyer in

obtaining all documents for transport.

Accept the proof of delivery (alongside vessel).


Pay expenses for verifying, packaging,

marking of goods.


departure.

Other Obligations

A i t th b i bt i i ll d t P ll ti i t d i bt i i i f ti


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Free on Board

FOB (The named port of shipment)Type of Transport : Marine Type of Sale : On Departure






Licences, Authorizations and FormalitiesObtain licences and authorisations for

exporting the goods, at own risk and cost.

Obtain licences and authorisations for importing the

goods, at own risk and cost.


Transport and Insurance No obligation Transport contract at his own cost from the port of

loading. Insurance No obligation.


Deliver the goods onboard the vessel

designated by the buyer. (the agreed date/the

agreed port)

Receive the goods at the agreed port..

Transfer of Risks

Carry all Risks until the goods pass the ships

rail. (The agreed port)..

Carry all risks of loss and damage once the goods

passed the ships rail.

Division of Costs

Carry all costs to named port. Pay the costs of

customs formalities/duties/taxes for export.

Pay all costs once goods have passed the ships rail.

Notification

Advise the buyer that goods were loaded

onboard the vessel..

Provide the seller with vessels name point of shipment

and delivery within a reasonable time.

Proof of Delivery

Supply certificate of delivery at own cost. Accept proof of delivery..



marking of goods.


departure.

Other Obligations


importation, insurance, and transit through a

third country.

Pay all costs anticipated in obtaining information for

insurance importation and transit documents and

refund seller those costs whilst lending his assistance.


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Cost and Freight

CFR (The named port of destination)Type of Transport : Maritime Type of Sale : On Departure







licence and complete all customs formalities

for export.

Obtain at his own risk and expense any import licence

and complete all customs formalities for import and

for transit of the goods through any country.


Transport contract until the named port, at his

own cost. Insurance No obligation.

Transport contract: No obligation.

Insurance-No obligation.


Deliver the goods on board the vessel (named

port/date/time period)

Accept delivery of goods on board the vessel and

receive the goods at named port of destination.

Transfer of Risks

Carry all risks until the goods pass the ships

rail (Loading port)

Carry all risks of loss or damage after the goods pass

the ships rail.

Division of Costs

Carry all costs to named port and freight,

costs of loading / unloading / duties / charges /taxes for export under contract of carriage.

Pay all costs from named port and costs and charges

of transport / unloading / lighter / transfer on the quay.

Notification

Advise the buyer that goods were delivered

on board the vessel.

Provide the seller with the shipment date and/or the

destination port within a reasonable amount of time.

Proof of Delivery

Supply the transport document for the agreed

port of destination, at own cost and without

delay..

Accept the document of transportation at agreed port,

if stipulated in the contract.



marking of goods.


departure.

Other Obligations

H l th b bt i ll d t f P ll t ti i t d i bt i i i f ti f


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Cost Insurance and Freight

CIF (The named port of destination)Type of Transport : Maritime Type of Sale : On Departure







licence and complete all customs formalities for

export.

Obtain at his own risk and expense any import


import and for transit of the goods through any

country.


Transport and insurance contract at his own cost. Transport contract: No obligation.Insurane-No

obligation.

Delivery/Taking DeliveryDeliver the goods on board the vessel (named

port/date/time period)

Load delivery of goods on board the vessel.

Transfer of Risks

Carry all risks until the goods pass the ships rail

(Loading port)

Carry all risks of loss or damage after the goods

pass the ships rail.

Division of Costs

Carry all costs to named port and freight, costs ofshipment/unloading/duties/charges/taxes for

export. Pay Insurance costs.

Pay all costs from named port and costs andcharges of transport/unloading/lighter/transfer on

the quay.

Notification

Advise the buyer that goods were delivered on

board the vessel.

Provide the seller with the shipment date and/or

the destination port within a reasonable amount of

time.

Proof of Delivery

Supply the transport document for the agreed portof destination, at own cost and without delay..

Accept the document of transportation at agreedport, if stipulated in the contract.



of goods.


departure.

Other Obligations


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Carriage Paid To

CPT (The named place of destination)Type of Transport : Multi-modal Type of Sale : On Departure






Licences, Authorizations and FormalitiesObtain licences and authorizations for exporting

the goods, at his own risk and cost, including

transit through any country.

Obtain licences and authorizations for importing

the goods, at his own risk and cost..


Transport contract: at his own cost. Insurance

contract: no obligation.




Deliver the goods to the first carrier.(The nameddate/point)

Accept the delivery of the goods at named point..

Transfer of Risks

Carry all risks up to named point. Carry all risks of loss or damage from named

point.

Division of Costs

Carry all costs to named point and freight, costs

of shipment / unloading / duties / charges / taxes,payable under contract of carriage.

Carry all the costs from named point.

Notification

Advise the buyer of the place and estimated time

of delivery.


delivery within a reasonable amount of time..

Proof of Delivery

Supply the transport document for the named port

of destination, at own cost and without delay..

Accept the document of transportation at named

port, if stipulated in the contract.

Verification of Packaging/ Goods Inspection.Pay expenses for verifying, packaging, marking

of goods.


departure.

Other Obligations


i t ti t it th h thi d t d

Pay all costs anticipated by seller and refund

th i d b ll hil l di i t


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Carriage Insurance Paid To

CIP (The agreed point of destination)Type of Transport : Multi-modal Type of Sale : On Departure











Transport and insurance at his own cost. Transport contract: No obligation.


Deliver the goods to the carrier.(The named

date/point)


Transfer of Risks


point.

Division of Costs

Carry all costs to named point and freight, costs

of shipment/unloading/duties/charges/taxes, cost

of Insurance.


NotificationQuickly notify the buyer with place and estimated

time of delivery.



Proof of Delivery

Supply the transport document for the named port

of destination, at own cost and without delay..


port, if stipulated in the contract.



of goods.


departure.

Other Obligations


importation or transit through a third country.

Pay all costs anticipated by and refund those

incurred by seller while lending assistance. Give

the seller all information for obtaining an

i


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Delivered At Frontier

DAF (The named place of destination)Type of Transport : Multi-modal Type of Sale : On Departure







the goods, at his own risk and cost including

transport through any country.




Transport contract: at his own cost to the named

point of delivery at the frontier. Insirance No

obligation.


Insurance- No obligation.

Delivery/Delivery PriceDeliver the goods to the named point at the

frontier.


Transfer of Risks


point.

Division of Costs

Carry all costs to named point and costs ofunloading/duties/charges/taxes for export. Carry all the costs from named point plusduties/taxes/charges because of goods importation

and subsequent transport.

Notification

Advise the buyer of the shipment of the goods to

the frontier.

Provide the seller with the shipment date and

point of delivery within a reasonable amount of

time..

Proof of Delivery

Provide the document of transport or any otherproof of delivery to the named point on the

border, at his own cost and without delay.

Accept the document of transportation at namedpoint on border.



of goods


departure


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Delivered ex Ship

DES (The named port of destination)Type of Transport : Maritime Type of Sale : On Departure












point of delivery.Insurance-No obligation


Insurance-No obligation


Onboard the ship, uncleared for import at the

named destination port.


Transfer of Risks


point.

Division of Costs

Carry all costs to named point and

duties/charges/taxes/customs formalities for

export.

Carry all the costs from named point including

unloading.

Notification

Quickly advise the buyer of the designated

vessels estimated time of arrival at named port..

Provide the seller with the date and port of


Proof of Delivery

Supply the document of transport/delivery note at

his own cost and without delay.


port.



of goods.


departure.

Other Obligations


importation and all information for obtaining an

i


those incurred by seller while lending assistance.


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Delivered ex Quay Duty Paid

DEQ (The named port of destination)Type of Transport : Maritime Type of Sale : On Departure






Licences, Authorizations and FormalitiesObtain at his own risk and expense any export


export of the goods and their transit through any

country.

Obtain at his own risk and expense any import


the import of the goods.


Transport contract: at his own cost to the quay at

the named port of destination. Insurance-No

obligation.




Deliver the goods to the buyer, on the quay at the

destination port.

Accept the delivery of the goods at named port.

Transfer of Risks


point.

Division of CostsCarry all costs to named point and pay costs ofduties/charges/taxes/customs formalities for

export and import.

Carry all the costs from named point. All duties,

taxes and other charges payable upon import of

the goods.

Notification

Quickly provide the buyer with the designated

vessels estimated time of arrival at Destination

Port..

Provide the seller with the date and port of

delivery within a reasonable amount of time.

Proof of DeliverySupply the document of transport/delivery note

at own cost and without delay..


port



of goods


departure


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Delivered Duty Unpaid

DDU (The named place of destination)Type of Transport : Multi-modal Type of Sale : On Departure






Licences, Authorizations and FormalitiesObtain licences and authorizations for exportingthe goods, at his own risk and cost..





point of destination. Insurance No obligation.




Deliver the goods at the named point. Accept the delivery of the goods at named point..

Transfer of RisksCarry all risks up to named point. Carry all risks of loss or damage to the goods

from named point.

Division of Costs

Carry all costs to named point and pay costs of


export.

Pay all costs from named point and costs of

customs formalities, duties and taxes and other

charges for import.

NotificationAdvise the buyer that the goods were shipped and

inform him of the possibilities for receipt.

Provide the seller with the date and place of


Proof of Delivery


own cost and without delay..


port.



of goods.


departure.

Other Obligations


importation or transit and all information for

obtaining an insurance.


those incurred by seller while lending assistance.


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Deliver Duty Paid

DDP (The named place of destination)Type of Transport : Multi-modal Type of Sale : On Departure






Licences, Authorizations and FormalitiesObtain licences and authorizations for bothexporting and importing the goods, at his own

risk and cost..

Assist the seller in obtaining licences and

authorizations for importing the goods and transit.



point of destination. Insurance No obligation.


Insurance-No obligation.


Deliver the goods (named place/date/time period) Accept the delivery of the goods at named point..

Transfer of Risks

Carry all risks up to named point. Carry all risks of loss or damage to goods from

named point.

Division of Costs

Carry all costs to named point and pay costs of


export and import.


Notification

Advise the buyer that goods were shipped and

inform him of the possibilities of receipt.

Provide the seller with the date and place of


Proof of Delivery


own cost and without delay..


point.


Pay expenses for verifying, packaging, markingof goods.

Pay expenses for inspection of goods beforedeparture.

Other Obligations

Help the buyer obtain all documents for delivery

of the goods.

Help the seller, at his request and his own risk

and cost, obtain documents required for delivery

f th d


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Page 16 of 16

AT A GLANCE Interpretation of the INCO Terms

Note: to avoid any confusion, an INCO Term must be accompanied by a named place e.g. FOB Montreal ; EXW Birmingham

EXW FCA FAS FOB CFR CIF CPT CIP DAF DES DEQ DDU DDPSERVICES Ex Works Free Carrier FreeAlongside

Ship

FreeOnboard

Vessel

Cost &Freight

CostInsurance &

Freight

CarriagePaid To

CarriageInsurance

Paid To

Delivered AtFrontier Delivered ExShip

Delivered ExQuai Duty

Paid

DeliveredDuty Unpaid

DeliveredDuty Paid

WarehouseStorage Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller

WarehouseLabour Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller

Export Packing Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller SellerLoadingCharges Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller

Inland Freight

Buyer

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

TerminalCharges Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller

Forwarder'sFees Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller

Loading OnVessel Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller

Ocean/AirFreight Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller

Charges UponArrival Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller Sellerv Seller Seller Seller Seller

Duty, Taxes &Customs

Clearance Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Buyer SellerDelivery ToDestination Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller

Guide to Incoterms 2000

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