Incoterms 2010 EU Ana

8/10/2019 Incoterms 2010 EU Ana

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February, 2013Amman


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Presented by Caroline Gubbi

Incoterms 2010

Caroline is BDPs Regulatory Compliance Executive for Europe and has

been with BDP since September 2010.

Caroline is a 2010 graduate from the University of Antwerp with a

degree in Law and Maritime Science.

Caroline is a member of BDPs global Center of Excellence for

Regulatory Compliance.

Carolines duties cover a wide range of important issues, starting from

trade regulations, hazardous materials as well as security across

all modes.

Caroline is the European compliance resource and provides training

(internal & external) and assistance for the EU region on import

and export regulatory issues.


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Incoterms 2010

What Incoterms arentWhat Incoterms do

What Incoterms dont do

Important Changes for 2010


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Incoterms are:

Incoterms 2010

INternational COmmercial TERMS 11 terms of shipment and delivery created by the

,

contracts

Provide an Internationally accepted definit ion of:e respons es o uyer an e er

The allocation of delivery costs

The assumption of delivery risks

Periodically updated to reflect trade practice Should be referred to as Rules

Translated into different languages


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Incoterms 2010

Incoterms arent: Law Incoterms need to be specified in sales

con rac s n or er o app y.

This is normally done by citing the current Incoterms

version in sales quotations and purchase orders.

All-InclusiveDetailed situations beyond the

scope of Incoterms must be covered elsewhere


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Incoterms 2010

Divide costs, risks and responsibil itiesbetween seller and buyer

into subsidiary contracts necessary tofulf ill designated Incoterm tasks, such ascontracts of carriage and insurance

Provide useful shorthand

Reduce potential misunderstandingsbetween buyer and seller

Reflect rather than dictate tradepractice


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Incoterms 2010

Incoterms do not: Convey title

ress revenue recogn on

Include all of the duties of the Buyer/Seller in a

transaction

Automatically apply (you must specify)

Speak about payment disputes between buyer

and seller Deal with a breach in contracts


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Incoterms 2010

mportant c anges or :

11 terms of delivery instead of 13

DAF, DES, DDU and DEQ have been removed

DAP and DAT are new and have been added

Container arrival costs are not expressed (ex: THC and

other destination charges)

Exact cost transfer points need to be addressed

elsewhere in the contract

with unloading

FOB changed to on board vessel (ships rail reference


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Incoterms 2010

ANY MODE MARITIME ONLY

EXW FAS

FCA FOB

CPT CFR

CIP CIF

DAP

DDP


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Ex Works (EXW) E Terms

Sellers cost & risk end when

goods are at the disposal of

the Buyer at the Sellerse er s os

Sellers Risk(Warehouse Labor &

Export Packing)

Buyers Cost

Buyers Risk(Loading at Origin Point)

premises or named place.

EXW = ExWorks

(Named Place)

Buyers CostBuyers Risk(Port of Loading)

e er

Buyers Cost

Buyers Risk(In Transit)

Buyers Cost

Bu ers Risk

(Port of Discharge)

Buyer


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Incoterms 2010

erms

FREE CARRIERNAMED PLACE (usually the sellers

Premises or a buyer appointed carrier terminal on the

se er s s e

Abbreviation: FCA

Transport Mode: All oa ng: truc , tra n, arge at e er s ac ty s se er s respons ty

Pre- carriage is sellers responsibility

Sellers cost & risk end when goods are delivered to Buyers Carrier at the


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Free Carrier (FCA) F Terms

Sellers cost & risk end

when goods are

e er s osSellers Risk

(Named Place)

Sellers Cost

Sellers Risk(Named Place)

carrier.

FCA = Free Carrier

(Named Place)

uyer s ost


e er

Buyers Risk

Buyer


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Incoterms 2010

Abbreviation: FAS

Transport Mode: Vessel

oa ng: ruc , ra n , arge, e c. a e er s ac y s se er s respons y

Pre-carriage: Sellers responsibil ity

Sellers cost and risk end when goods are placed alongside the vessel

Suggestion: In case of containers delivered at a terminal, the FCA rule is

more appropriate


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Free Alongside Ship F Terms


when goods are

delivered to buyers

Sellers Cost

Sellers Risk Sellers Cost

Sellers Risk

carrier

FAS = Free Alongside

Ship

(Named Port of

Buyers Cost

Buyers Risk

Shipment)

Loading)

Buyers Cost


Seller

Bu er

Buyers CostBuyers Risk


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Incoterms 2010

FREE ON BOARD NAMED PORT OF SHIPMENT Abbreviation: FOB

Loading: truck, train, barge, etc. at Sellers facility

is the Sellers responsibil ity

Pre-carria e: Sellers res onsibil it

Vessel loading: Sellers responsibili ty

Sellers cost and risk end when the goods are delivered on

board the vessel nominated b the bu er

Suggestion: For containerized shipments, consider FCA

showing the carriers terminal at the port as the designated

lace


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Free on Board (FOB)

*Ocean Only

F Terms


when goods are

Sellers Cost

Sellers Risk(Named Place)

carrier

FOB = Free on Board

(Named Port of

Sellers Cost

Sellers Risk(On Board Ship/At

ort o oa ng)

Bu ers Cost


Buyers Cost

Buyers Risk

Seller

(Port of Discharge)

Buyers Cost

Buyers Risk

Buyer


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Incoterms 2010

ermsCOST AND FREIGHT NAMED PORT OF

DESTINATION

Abbreviation: CFR


Loading: truck, train, barge, etc. at Sellers facility is the Sellersresponsibility

Pre-carriage: Sellers responsibi lity

Vessel loading: Sellers responsibi lity

Main carriage: Sellers responsibi lity (however, Seller is notresponsible for condition of goods whi le they are in main carriage

transit)


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Incoterms 2010

COST AND FREIGHT NAMED PORT OF

DESTINATION (continue)

Sellers r isks for loss and damage end when the goods

are on board the vessel

The Seller must contract and pay the costs and freight necessaryto bring the goods to the named port of destination

Suggestions: for containerized shipments, consider CPT showing

the destination port or an inland location on the buyers side


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Cost & Freight

*

C Terms

Sellers assumes cost

but not risk of delivered

Sellers Cost

Sellers RiskSellers Cost

Sellers RiskPort of Loadin

destination

CFR = Cost & Freight

(Named Port of Destination)

e er s ost


Buyers CostBu ers Risk

Seller

(Port of Discharge)

Buyers Cost

Buyers Risk

Bu er


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Incoterms 2010

COST INSURANCE AND FREIGHTNAMED PORT OF

DESTINATION


Loading: truck, train, barge, etc. at Sellers facility is the Sellers

res onsibilit

Pre carriage: Sellers responsibil ity

Vessel loading: Sellers responsibili ty

The sellers risks of dama e or loss end when oods are on board the

vessel The seller must contract for and pay the costs and freight necessary to

bring the goods to the named port of destination


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Incoterms 2010

COST INSURANCE AND FREIGHTNAMED PORT OF

DESTINATION (continue)

on behalf of the buyer

Main carriage: the contract of main carriage and payment

Suggestion: for containerized shipments, consider CIP

showing the destination port or an inland location on the

.


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Incoterms 2010

CARRIAGE PAID TO NAMED PLACE OF

DESTINATION

Abbreviation: CPT

Transport mode: All

Loading: Sellers responsibil ity

Pre carriage: Sellers responsibi lity a n carr age: e er s respons y

Sellers risk ends when goods are delivered to the carrier or another

person nominated by the seller at an agreed place

Su estions: Ideal for containerized shi ments

The Seller must contract for the costs of carriage necessary to bring thegoods to the named place of destination


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CARRIAGE AND INSURANCE PAID TO

Incoterms 2010

NAMED PLACE OF DESTINATION

Abbreviation: CIP

Trans ort Mode: All

Loading: truck, train, barge at Sellers facility is Sellers

responsibility

Pre-carriage: Sellers responsibi lity

Insurance: Seller must provide buyer with insurance policy

Sellers risk ends when goods are delivered to the carrier or

another person nominated by the seller at an agreed place

The seller must contract for the costs of carriage necessary tobring the goods at the named place of destination


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Carriage & C Terms

Seller assumes cost but not

risk of delivering goods to

named destination

CIP = Carriage &Insurance Paid(Named Place of

Destination)

Sellers Cost

Sellers Risk(Into Custody of

arr er)

Sellers Cost

Buyers Risk

Seller(In Transit)

Buyers Cost

Buyers Risk(Port of Discharge)

Buyer



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Incoterms 2010

D TermsDELIVERED AT TERMINAL (terminal on Buyers side)

rev a on:

Transport mode: all

Sellers risks end once goods are unloaded from the arriving

named terminal at port or place of destination

The Seller must contract for the costs of carriage to the named

terminal at the a reed ort or lace of destination

Suggestion: when using this term it is recommended to specify asclearly as possible the terminal at the agreed port or place of

destination, as the risks to that point are for the account of the

e er


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Delivered At D Terms

Seller bears costs and

risks of delivery of goods

to Buyers

Sellers Cost


Sellers Risk(Into Custody of

country/location.

DAT= Delivered At

Terminal(Named Port /Place of

arr er)

Sellers Cost

Sellers Risk

Seller(In Transit)

Sellers Cost

Sellers Risk(Port of Discharge)

Buyer



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Incoterms 2010

DELIVERED AT PLACE ( on Buyers side)

Abbreviation: DAP

Trans ort mode: al l

The sellers risks end when goods are placed at the disposal of

the buyer on the arriving means of transport ready for unloading

The Seller bears the costs for the carriage of the goods to thenamed place of destination or the agreed place

Suggestion: when using this term, make clear which party is

responsible for unloading and any type of on-carriage


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Delivered At Place D Terms

Seller bears cost and


Sellers Cost


Sellers RiskInto Custod of

country/location

DAP = Delivered At

PlaceNamed Place of

Carrier)

Sellers Cost

Destination)

Seller

(In Transit)

Sellers Cost

Sellers Risk(Port of Discharge)

Buyer

Buyers Cost

Buyers Risk


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Incoterms 2010

Abbreviation: DDP Transport mode: All

all the costs and risks involved in bringing the goods to the place of

destination and

import,

And has to pay any duty for both export and import and

Has to carr out all customs formalities

The seller wi ll also need to bear the VAT !

D T


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DeliverDuty Paid D Terms

Seller bears costs and


Sellers Cost


Sellers Risk

country/location.

DDP= Delivered Duty

PaidNamed Place of

Sellers Cost

Destination)

Seller

(Port of Loading)

Sellers Cost

Sellers Risk(Named Place of Distribution)

u er

Sellers CostSellers Risk

(Duty Sellers Cost)


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Incoterms 2010 EU Ana

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