Understanding the main features and NEW changes over old version 2000

JUAN DIEGO ALZATE GOMEZ

International Acredited Trainer Incoterms® 2010 rules Trainers Bureau International Chamber of Commerce-Paris-

“Incoterms” y su logo son una marca registrada

de la Cámara Internacional de Comercio (ICC).

INCOTERMS® 2010: WHAT’S NEW?

1. Introduction

2. 13 11 Incoterms® rules

3. Classification

4. Domestic and international trade

5. ‘Guidance notes’ + drawings

6. Electronic documents have full functional equivalence to paper documents

7. Adjustment insurance cover to the Institute Cargo Clauses 2009

8. First Incoterms® rules since 9/11 Incorporation ‘Security related information’ A10/B10

9. Terminal Handling Charges (THC) improved wording A6/B6

10. String sales

INCOTERMS® 2010: NEWS

Shortened introduction limited guidance notes per Incoterms® rule

13 11 Incoterms® rules

DAF+DES+DDU DAP;

DEQ DAT

DAP

Delivered at Place

DAT

Delivered at Terminal

Merging to new version 2011

5

Overview of former Incoterms rules

Equivalent Incoterms® 2000 rule

Equivalent Incoterms® 2010 rule

ex factory, ex mill, ex plantation, ex warehouse, ex store, etc.

EXW EXW

Free Carrier (FRC) FOR (Free On Rail) - FOT (Free On Truck) - Franco Wagon FOB Airport (FOA) FOQ (Free on Quay) FOW (Free on Wheels)

FCA

FCA

C.And F. C&F C+F CF

CFR

CFR

CAF CIF CIF

Freight or Carriage Paid to (FCP) CPT CPT

Freight or Carriage and Insurance Paid to CIP CIP

DAF

DAP

Ex Ship (EXS) DES

DDU

Ex Quay (EXQ) DEQ DAT

DAF (Named

place)

DAP (Named place

of destination)

DES (… named port

of destination)

DAP (Named place

of destination)

DEQ (… named port

of destination)

DAT (Named terminal at

port or at place of

destination)

DAT (Named

terminal at port ,

airport or any other

place of destination)

DAP (Named place of

destination)

DDU (Named

place)

four different categories:

1. “E”: the seller only makes the goods available to the buyer at the seller’s own premises;

2. “F”: the seller is called upon to deliver the goods to a carrier appointed by the buyer;

3. “C”: the seller has to contract for carriage, but without assuming the risk;

“D”: the seller bears all costs and risks needed to bring the goods to the place of destination.

two classes:

1. seven Incoterms® 2010 rules that can be used irrespective of the mode of transport selected and irrespective of whether one or more than one mode of transport is employed;

2. four “sea and inland waterway” rules where the point of delivery and the place to which the goods are carried to the buyer are both ports.

Goods are collected at

Goods are shipped from

Goods are shipped to

Goods are delivered at

Container - FCL

Inland terminal - LCL

Port terminal - LCL

Ship’s rail On board

Port customs

2010

Passing of risk FCA – CPT - CIP

FOB – CFR - CIF

A4 delivery

◦ Incoterms 2000: The seller must deliver the goods on board the vessel at the port of shipment […] on the date or within the agreed period.

◦ Incoterms® 2010: The seller must deliver the goods either by placing them on board the vessel or by procuring the goods so delivered. […]

In string sales there is no actual delivery of goods but a transfer of B/L’s several professional organisations of commodity traders excluded the application of the Incoterms® rules from their general conditions and model contracts. This gap has now been filled. A transfer of a B/L now equals ‘delivery’.

A THE SELLER’S OBLIGATIONS

General obligations of the seller Licences, authorizations, security

clearances and other formalities Contracts of carriage and

insurance Delivery Transfer of risks Division of costs Notice to the buyer Delivery document Checking – packaging – marking Assistance with information and

related costs

A THE SELLER’S OBLIGATIONS

Provision of goods in conformity with the contract

Licences authorisations and formalities Contracts of carriage and insurance Delivery Transfer of risks Division of costs Notice to the buyer Proof of delivery, transport document or

equivalent electronic message Checking – packaging - marking Other obligations

B THE BUYER’S OBLIGATIONS

General obligations of the buyer

Licences, authorizations, security clearances and other formalities

Contracts of carriage and insurance

Taking delivery

Transfer of risks

Division of costs

Notice to the seller

Proof of delivery

Inspection of goods

Assistance with information and related costs

B THE BUYER’S OBLIGATIONS

Payment of the price

Licences, authorizations and formalities

Contracts of carriage and insurance

Taking delivery

Transfer of risks

Division of costs

Notice to the seller

Proof of delivery, transport document or equivalent electronic message

Inspection of goods

Other obligations

Structure of the Incoterms®

rules: 10 articles A THE SELLER’S OBLIGATIONS

General obligations of the seller

Licences, authorizations, security clearances and other formalities

Contracts of carriage and insurance

Delivery

Transfer of risks

Division of costs

Notice to the buyer

Delivery document

Checking – packaging – marking

Assistance with information and related costs

B THE BUYER’S OBLIGATIONS

General obligations of the buyer

Licences, authorizations, security clearances and other formalities

Contracts of carriage and insurance

Taking delivery

Transfer of risks

Division of costs

Notice to the seller

Proof of delivery

Inspection of goods

Assistance with information and related costs

First you analyse and define the relevant obligation

Then you select the article that settles the relevant obligation

Then you look up the applicable Incoterms® rule.

•Cargo

•Invoices

A1

•Contracts

•Insurances

A3

•Delivery

Document

A8

Private Duties/tasks

•Regulations

•Customs

•Formalities

A2

•Assitance

•Other docs, security

related information

•NOT succes obligations

A10

Goverment, regulations

• Place

• Point

Delivery

MAIN OBLIGATION

B5

B6

•NOTIFY ABOUT: Shipments, delivery

times, carriers, customs and security. A7

•Checking, Marking, Packing. A9

OTHER OBLIGATIONS

THE INNER STRUCTURE ABOUT INCOTERMS The way an expert decides

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RISK

A5

A6 COST

MASTERCLASS on Incoterms ®2010 rules is

only provided by ICC at Headquarter (Paris), or National Committees and local partner by an Official Accredited Trainer belonging to Trainers Bureau of ICC.

OFFICIAL AND only source (Official texts)

Incoterms®2010 By International Chamber of Commerce. ICC rules for the use of domestic and international trade terms. Publication 715E (English) , 715S (Spanish and English), ISBN 978-92-842-0080-1 , 978-84-89924-46-8. ICCBOOKS.COM

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