Incoterm 2010

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INCOTERMS 2010
Lecturer : Bui Thanh Trang, Ph.D

INCOTERMS 2010
• • • • What are Incoterms? What is purpose of Incoterms? Scope of Incoterms? Structure of Incoterms?

What are INCOTERMS?
 A set of rules for the interpretation of trade terms, in a contract of sale.

 ICC official rules for the interpretation of the trade terms  INCOTERNS 1936 is first published by ICC, amendments and additions were made in 1953, 1967, 1976, 1980 , 1990, 2000 and 2010.

I. PURPOSE OF INCOTERMS
 Determining obligations of the seller and buyer :  Costs and expenses  Risks for the transportation of goods from the seller’s premises to the buyer’s place

 Setting up exporting price for term of sale.  Eliminating uncertainties and different interpretations of trade terms.

SCOPE OF INCOTERMS
Do not deal with:  Transfer of ownership and other property right

 The consequences of breach of contract, and any exemptions from liability owing to various impediments.

1. General obligations of the seller

2. Licences and formalities
3. Contract of carriage and insurance

4. Delivery

Seller’s Obligations

5. Transfer of risks

6. Division of costs
7. Notice to the buyer 8. Proof of delivery, transport document 9. Checking- Packaging -Marking 10. Assistance with information and related costs

1. General obligations of the buyer

2. Licences and formalities
3. Contract of carriage and insurance

4. Taking delivery
Buyer’s Obligations 5. Transfer of risks

6. Division of costs
7. Notice to seller 8. Proof of taking delivery, transport document 9. Inspection of goods 10. Assistance with information and related costs

AN INCOTERM IS A 3 LETTERS WORD FOLLOWED BY A NAME OF PLACE... EXW: Ex Work (….name place)

The structure of INCOTERMS 2000
4 GROUPS OF TERMS
AN INCOTERM IS A 3 LETTERS WORD FOLLOWED BY A NAME OF PLACE...

GROUP E : Departure EXW Ex Works (… named place)

GROUP F : Main Carriage Unpaid
 FCA Free Carrier (… named place)

 FAS Free Alongside Ship (..named port of shipment)  FOB Free On Board (…named port of shipment)

GROUP C: Main Carriage Paid
 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)

GROUP D : Arrival
 DAF Delivered At Frontier (…named place)

 DES Delivered Ex Ship (…named port of destination)  DEQ Delivered Ex Quay (…named port of destination)  DDU Delivered Duty Unpaid (..named place of destination)  DDP Delivered Duty Paid (..named place of destination)

EXWEXW-EX WORKS (named place)

INCOTERMS 2010
RULES FOR ANY MODE OR MODES OF TRANSPORT:
EXW
FCA CPT CIP

EX WORKS
FREE CARRIER CARRIAGE PAID TO CARRIAGE AND INSURANCE PAID TO

Named place of delivery
Named place of delivery Named place of destination Named place of destination

DAT DAP
DDP

DELIVERED AT TERMINAL DELIVERED AT PLACE
DELIVERED DUTY PAID

Named terminal at port or place of destination Named place of destination Named place of destination

INCOTERMS 2010
RULES FOR SEA AND INLAND WATERWAY TRANSPORT:
FAS FREE ALONGSIDE SHIP Named port of shipment

FOB FREE ON BOARD CFR CIF COST AND FREIGHT COST INSURANCE AND FREIGHT

Named port of shipment Named port of destination Named port of destination

INCOTERMS 2010 - Seller/Buyer Risks, Costs and Obligations Transfer

INCOTERMS 2010 & 2000
2000
DEQ

2010
DAT

The seller unloads from the arriving means of transport, and places goods at disposal of the buyer at the named terminal at the named port or place of destination

DAF DES DDU

DAP

The seller places goods at disposal of the buyer on the arriving means of transport, ready for unloading at the named place of destination

INCOTERMS 2010 ----------RULES FOR ANY MODE OR MODES OF TRANSPORT

EXW-EX WORKS (named place)

THE SELLER’S OBLIGATIONS
...
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