Incoterms 2010 – ICC rules for the use of domestic and international trade terms The Incoterms rules are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) widely used in international commercial transactions. The Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods. The Incoterms rules are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade. They are intended to reduce or remove altogether uncertainties arising from different interpretation of the rules in different countries. There are seven rules for any modes of transportation:
EXW – Ex Works (named place of delivery): The seller makes the goods available at its premises. This term places the maximum obligation on the buyer and minimum obligations on the seller. EXW means that a seller has the goods ready for collection at his premises on the date agreed upon. The buyer is responsible for all transportation costs and risks for bringing the goods to their final destination. The seller does not load the goods on collecting vehicles and does not clear them for export. If the seller does load the goods, he does so at buyer's risk and cost. The parties can agree otherwise, but it has to be included in a contract. In FCA – Free Carrier (named place of delivery), the seller hands over the goods, cleared for export, into the disposal of the first carrier at the named place. The seller is responsible for carriage to the named point of delivery, and risk passes when the goods are handed over to the first carrier. In CPT - Carriage Paid To (named place of destination), seller pays for carriage. After the goods have been handed to the first carrier, the risk transfers to the buyer. When applying the CIP – Carriage and Insurance Paid to (named place of destination), the seller pays for...
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