INCOTERMS 2010 - KWE Switzerland · INCOTERMS®-clauses 2010 INCOTERMS® 2010 Mode of...

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Baloise Safety World INCOTERMS ® 2010 An overview of the international trade clauses

Transcript of INCOTERMS 2010 - KWE Switzerland · INCOTERMS®-clauses 2010 INCOTERMS® 2010 Mode of...

BaloiseSafetyWorld

INCOTERMS® 2010

An overview of the international trade clauses

We are making your supply chain safer.For example with

→ active prevention management

→ use of modern technologies to monitor goods

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CONTENTS

INCOTERMS® 2010 3

Mode of transport an appropriate

INCOTERMS® 2010 clauses 4

EXW-clauses 5

FCA-clauses 6

CPT-clauses 7

CIP-clauses 8

DAT-clauses 9

DAP-clauses 10

DDP-clauses 11

FAS-clauses 12

FOB-clauses 13

CFR-clauses 14

CIF-clauses 15

Th ey have been introduced by the international chamber of

commerce and rule the rights and duties of buyers and sellers

in international trade.

Th e INCOTERMS® can be purchased from the international

chamber of commerce Zurich (Publication 715ED) or in any

bookshop (ISBN 978-3-929621-71-6).

Th e INCOTERMS® are international rules for the interpreta-

tion of specifi c parts of contracts which are used in commer-

cial contracts.

Th ese clauses rule in particular:

→ the delivery and acceptance of goods,

→ the allocation of costs,

→ the transfer of risks,

→ the delivery of the documents or the equivalent electronic

messages.

Th ey do however not rule amongst others:

→ the change of ownership,

→ the payment details,

→ the applicable law,

→ the jurisdiction.

In your commercial contracts agree the INCOTERMS® 2010

and clearly state this, e.g. «CIF INCOTERMS® 2010». Following

this you are sure to have clear conditions. If certain countries

ask for a marine cargo insurance to be placed abroad due to

legal reasons, there is the possibility to protect the substantial

fi nancial risk by a subsidiary insurance. Th e subsidiary insur-

ance has nothing to do with an export risk guarantee but is

solely to ensure full insurance coverage over a marine insur-

ance placed abroad.

The INCOTERMS® are divided into four groups:

E-clauses

EXW Ex Works (… named place of delivery)

F-clauses

FCA Free Carrier (… named place of delivery)

FAS Free Alongside Ship (… named port of shipment)

FOB Free On Board (… named port of shipment)

C-clauses

CFR Cost and Freight (… named port of destination)

CIF Cost, Insurance and Freight (… named port of destination)

CPT Carriage Paid To (… named place of destination)

CIP Carriage and Insurance Paid (to)

(… named place of destination)

D-clauses

DAT Delivered at Terminal (… unloaded at the named terminal at

port or place of destination)

DAP Delivered at Place

(… ready for unloading named place of destination)

DDP Delivered Duty Paid

(… ready for unloading named place of destination)

Each clause rules the duties of the seller respectively the buyer.

In relation to the marine cargo insurance especially the fact

who is carrying the risk and from where to where.

As certain clauses are restricted the Marine Cargo Insurer rec-

ommends the following clauses:

→ Seller: Conduct transportation based e.g. on CIF- or CIP-

clauses.

→ Buyer: Conduct transportation based e.g. on CFR- or CPT-

clauses.

INCOTERMS® 2010International Commercial Terms

INCOTERMS® 2010

International Commercial Terms 3

Mode of transportation and appropriate

INCOTERMS®-clauses 2010

INCOTERMS® 2010

Mode of transportation and appropriate INCOTERMS®-clauses 2010

Which advantages result from this recommendation for

the Swiss seller or buyer?

→ Your Swiss Insurer is a reliable partner on whom you can

count in any case.

→ You define the adequate insurance coverage for your goods.

→ The insurance is valid from the point of departure until

final destination.

→ Always conclude the insurance on «Place/Place» basis.

→ You can settle a potential claim in Switzerland.

→ You reduce your financial risk to a minimum, as you have

in case of claim neither problems with money transfers (due

to foreign exchange restrictions) nor do you carry the risk of

currency exchange differences.

For all modes of transportation including multimodal

transports

EXW Ex Works (… named place)

FCA Free Carrier (… named place)

CPT Carriage Paid To (… named place of destination)

CIP Carriage and Insurance Paid (to)

(… named place of destination)

DAT Delivered at Terminal (… unloaded at the named terminal

at port or place of destination)

DAP Delivered at Place

(… ready for unloading named place of destination)

DDP Delivered Duty Paid

(… ready for unloading named place of destination)

Only for transportation by ocean-going vessels and

inland water vessels

FAS Free Alongside Ship (… named port of shipment)

FOB Free on Board (… named port of shipment)

CFR Cost and Freight (… named port of destination)

CIF Cost, Insurance and Freight (… named port of destination)

4

Seller

As seller in an «EXW-sale» you have to

→ make the goods available at the named place of delivery

(factory site, plant, warehouse etc).

What do you need to pay special attention to?

→ Even after you have handed over the goods you still carry a

substantial financial risk as long as the goods are not paid in

their entirety and the buyer did not purchase marine cargo

insurance.

Buyer

As buyer in an «EXW-purchase» you have to

→ take over the goods as soon as they are made available from

the seller at the named place of delivery,

→ organise at your own cost and risk the transportation from

this point onwards.

What do you need to pay special attention to?

→ The risk of loss and damage to the goods are transferred to

you as soon as the goods are made available at the seller.

→ The seller is not obliged to conduct marine cargo insurance

after the risk transfer to the buyer.

→ For the buyer this condition is unfavourable. He takes over

a maximum of responsibility and has to make all arrange-

ments related to export procedures, transportation, insur-

ance etc. himself.

Seller’s risk Buyer’s risk

The EXW-clauseEx Works (… named place)= «ex works»

INCOTERMS® 2010

The EXW-clause5

INCOTERMS® 2010

The FCA-clause

Seller

As seller in a «FCA-sale» you have to

→ make the goods available at the named place of delivery,

→ carry out all customs clearance procedures and to obtain

the permits necessary for export at your own risk and costs.

What do you need to pay special attention to?

→ Even after you have handed over the goods you still carry a

substantial financial risk as long as the goods are not paid in

their entirety and the buyer did not purchase marine cargo

insurance.

Buyer

As buyer in a «FCA-purchase» you have to

→ take over the goods as soon as they are made available from

the seller at the named place of delivery,

→ organise at your own cost and risk the transportation from

this point onwards.

What do you need to pay special attention to?

→ The risk of loss and damage to the goods are transferred to

you as soon as the goods are delivered to the named place.

→ A damage not ascertained before the taking over of the

goods by the freight haulier can subsequently not be claimed

from the seller.

→ The seller is not obliged to conduct marine cargo insurance

after the risk transfer to the buyer.

Seller’s risk Buyer’s risk

The FCA-clauseFCA Free Carrier (… named place)= «free carrier»

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Seller

As seller in a «CPT-sale» you have to

→ hand over the goods to the freight haulier at the named

place of destination,

→ carry all risks until the goods are handed over to the first

freight haulier.

What do you need to pay special attention to?

→ Even after you have handed over the goods you still carry a

substantial financial risk as long as the goods are not paid in

their entirety and the buyer did not purchase marine cargo

insurance.

Buyer

As buyer in a «CPT-purchase» you have to

→ carry the risk as soon as the goods are handed over to the

first freight haulier.

What do you need to pay special attention to?

→ A damage not ascertained before the taking over of the

goods by the freight haulier can subsequently not be claimed

from the seller.

→ The seller is not obliged to conduct marine cargo insurance

after the risk transfer to the buyer.

The CPT-clauseCPT Carriage Paid To (… named place of destination) = «carriage paid to»

INCOTERMS® 2010

The CPT-clause

Seller’s risk Buyer’s risk

7

INCOTERMS® 2010

The CIP-clause

Seller

As seller in a «CIP-sale» you have to

→ conduct the freight contract and pay the freight and costs

until the named place of destination,

→ carry all risks until the goods are handed over to the fi rst

freight haulier,

→ conduct a negotiable marine cargo insurance with coverage

adequate to the nature of the goods and the commercial

practice.

Buyer

As buyer in a «CIP-purchase» you have to

→ take over the goods at the named place of destination from

the freight haulier.

What do you need to pay special attention to?

→ The goods travel at your own risk. The seller is however

obliged to conduct insurance for the whole journey.

→ You have the possibility to agree with the seller on the scope

of the insurance coverage. If no such agreement has been

made, the seller is only obliged to conduct a «market prac-

tice» coverage (selling price plus 10 %). You do neither know

who the Insurer is nor the exact scope of coverage.

The CIP-clauseCIP Carriage and Insurance Paid (to) (… named place of destination)= «carriage and insurance paid to»

Seller’s risks Buyer’s risk

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Seller

As seller in a «DAT-sale» you have to

→ deliver the goods to the named port of destination or named

place and unload them at your own risk and costs,

→ carry our all customs clearance procedures and to obtain

the permits necessary for export at your own risk and costs.

What do you need to pay special attention to?

→ Even after you have handed over the goods you still carry a

substantial financial risk as long as the goods are not paid in

their entirety and the buyer did not purchase marine cargo

insurance.

Buyer

As buyer in a «DAT-purchase» you have to

→ take over the goods as soon as they are made available at the

named terminal in the named port of destination or named

place,

→ organise at your own cost and risk the transportation from

this point onwards.

What do you need to pay special attention to?

→ The risk of loss and damage to the goods are transferred to

you as soon as the goods are delivered to the named termi-

nal at the named port of destination or named place.

→ A damage not ascertained before the taking over of the

goods by the freight haulier can subsequently not be claimed

from the seller.

→ The seller is not obliged to conduct a marine cargo insur-

ance after the risk transfer to the buyer.

Seller’s risk Buyer’s risk

The DAT-clauseDAT Delivered at Terminal (… unloaded at the named terminal at port or place of destination)= «delivered at terminal»

INCOTERMS® 2010

The DAT-clause

Terminal

9

INCOTERMS® 2010

The DAP-clause

Risk according to individual agreement between buyer and seller

Seller

As seller in a «DAP-sale» you have to

→ deliver the goods to the named place of destination at your

own risk and costs,

→ carry out all customs clearance procedures and to obtain

the permits necessary for export at your own risk and costs.

What do you need to pay special attention to?

→ Even after you have handed over the goods you still carry a

substantial financial risk as long as the goods are not paid in

their entirety and the buyer did not purchase marine cargo

insurance.

Buyer

As buyer in a «DAP-purchase» you have to

→ take over the goods as soon as they are made available by the

seller at the named place of destination loaded on the means

of transportation making the delivery,

→ organise at your own cost and risk the transportation from

this point onwards.

What do you need to pay special attention to?

→ A damage occurred before the named place of destination

which is ascertained only at the final destination can subse-

quently not be claimed from the seller.

→ The seller is not obliged to conduct a marine cargo insur-

ance after the risk transfer to the buyer.

The DAP-clauseDAP Delivered at Place (… ready for unloading named place of destination)= «delivered at place»

10

ZOLL

DOUANE

Seller

As seller in a «DDP-sale» you have to

→ make the goods available at the named place of destination,

→ carry all costs and risks until the named place of destination

including duties, taxes and other levies.

What do you need to pay special attention to?

→ Even after you have handed over the goods you still carry a

substantial financial risk as long as the goods are not paid in

their entirety and the buyer did not purchase marine cargo

insurance.

→ You are responsible for the customs procedure in the coun-

try of destination which might cause you unsolvable prob-

lems (e.g. missing import license which the buyer has to

provide).

Buyer

As buyer in a «DDP-purchase» you have to

→ take over the goods as soon as they are made available by the

seller at the named place of destination loaded on the means

of transportation making the delivery and from this point

onwards carry all costs and risks until delivery to your

domicile.

What do you need to pay special attention to?

→ A damage occurred before the named place of destination

which is ascertained only at the final destination can subse-

quently not be claimed from the seller.

→ The seller is not obliged to conduct a marine cargo insur-

ance after the risk transfer to the buyer.

Seller’s risk Buyer’s risk

The DDP-clauseDDP Delivered Duty Paid (… ready for unloading named place of destination)= «delivered duty paid»

INCOTERMS® 2010

The DDP-clause

depending

on named

place of

destination

11

INCOTERMS® 2010

The FAS-clause

Seller’s risk Buyer’s risk

Seller

As seller in an «FAS-sale» you have to

→ deliver the goods on your own risk and costs to the named

place alongside the ship indicated by the seller at the named

port of loading,

→ carry our all customs clearance procedures and to obtain

the permits necessary for export at your own risk and costs.

What do you need to pay special attention to?

→ Even after you have handed over the goods you still carry a

substantial financial risk as long as the goods are not paid in

their entirety and the buyer did not purchase marine cargo

insurance.

Buyer

As buyer in an «FAS-purchase» you have to

→ take over the goods as soon as they are made available by

the seller at the named place at the port of loading,

→ organise at your own cost and risk the transportation from

this point onwards.

What do you need to pay special attention to?

→ The risk of loss and damage to the goods are transferred to

you as soon as the goods are delivered to the named place at

the port of loading.

→ A damage not ascertained before the taking over of the

goods by the freight haulier can subsequently not be

claimed from the seller.

→ The seller is not obliged to conduct marine cargo insurance

after the risk transfer to the buyer.

The FAS-clauseFAS Free Alongside Ship (… named port of shipment)= «free alongside ship»

12

Seller

As seller in an «FOB-sale» you have to

→ deliver the goods on board of the vessel,

→ carry all costs and risks until the delivery of the goods on

board of the vessel.

What do you need to pay special attention to?

→ Even after you have handed over the goods you still carry a

substantial financial risk as long as the goods are not paid in

their entirety and the buyer did not purchase marine cargo

insurance.

Buyer

As buyer in an «FOB-purchase» you have to

→ organise the necessary shipping space,

→ carry all costs and risks as soon as the goods are delivered

on board of the vessel.

What do you need to pay special attention to?

→ A damage not ascertained before the taking over of the

goods by the freight haulier can subsequently not be claimed

from the seller.

→ The seller is not obliged to conduct a marine cargo insur-

ance after the risk transfer to the buyer.

The FOB-clauseFOB Free on Board (… named port of shipment)= «free on board»

Seller’s risk Buyer’s risk

INCOTERMS® 2010

The FOB-clause13

INCOTERMS® 2010

The CFR-clause

Seller’s risk Buyer’s risk

Seller

As seller in a «CFR-sale» you have to

→ deliver the goods on board of the vessel,

→ conclude the freight contract and to pay the freight and

costs up to the named port of destination,

→ carry all costs and risks until the delivery of the goods

on board of the vessel at the named port of loading.

What do you need to pay special attention to?

→ Even after you have handed over the goods you still carry a

substantial financial risk as long as the goods are not paid in

their entirety and the buyer did not purchase marine cargo

insurance.

Buyer

As buyer in a «CFR-purchase» you have to

→ take over the good at the port of destination after receipt of

the documents,

→ carry all costs and risks as soon as the goods are delivered

on board of the vessel.

What do you need to pay special attention to?

→ The seller carries the risk only up to the port of loading. He

does not conclude an insurance for the journey.

→ A damage not ascertained before the taking over of the

goods by the freight haulier can subsequently not be claimed

from the seller.

The CFR-clauseCFR Cost and Freight (… named port of destination)= «cost and freight»

14

Seller’s risk Buyer’s risk

Seller

As seller in a «CIF-sale» you have to

→ deliver the goods on board of the vessel,

→ conclude the freight contract and to pay the freight and

costs up to the named port of destination,

→ carry all costs and risks until the delivery of the goods on

board of the vessel,

→ conduct a negotiable marine cargo insurance.

Buyer

As buyer in a «CIF-purchase» you have to

→ take over the good at the port of destination after receipt of

the documents,

→ carry all costs and risks as soon as the goods are delivered

on board of the vessel.

What do you need to pay special attention to?

→ The goods travel at your risk. The seller is however obliged

to conduct an insurance for the whole journey.

→ You have the possibility to agree with the seller on the scope

of the insurance coverage. If no such agreement has been

made, the seller is only obliged to conduct a «market prac-

tice» coverage (selling price plus 10 %). You do neither know

who the Insurer is nor the exact scope of coverage.

The CIF-clauseCIF Cost, Insurance and Freight (… named port of destination)= «cost, insurance and freight»

INCOTERMS® 2010

The CIF-clause15

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