The purpose of Incoterms is to provide a set of international rules for the\u00a0interpretation of the most commonly used trade terms in foreign trade. Thus, the\u00a0uncertainties of different interpretations of such terms in different countries can be\u00a0avoided or at least reduced to a considerable degree. The scope of Incoterms is\u00a0limited to matters relating to the rights and obligations of the parties to the contract\u00a0of sale with respect to the delivery of goods. Incoterms deal with a number of\u00a0identified obligations imposed on the parties and the distribution of risk between the\u00a0parties. In total 13 Incoterms have been defined which are grouped into four\u00a0basically different categories, applicable for sea and inland waterway transport or\u00a0for all modes of transport:<\/p>\n
| <\/td>\n | Applicable for sea \ntransport only<\/strong><\/td>\n Applicable for all modes of | \ntransport (including water)<\/strong><\/td>\n<\/tr>\n Departure term<\/strong><\/td>\n | <\/td>\n | EXW (Ex Works)<\/td>\n<\/tr>\n | Shipment term, main carriage unpaid<\/strong><\/td>\n | FAS (Free Alongside Ship) | \nFOB (Free On Board)<\/td>\n FCA (Free Carrier)<\/td>\n<\/tr>\n | Shipment term, main carriage paid<\/strong><\/td>\n | CFR (Cost and Freight) | \nCIF (Cost, Insurance and Freight)<\/td>\n CPT (Carriage Paid To) | \nCIP (Carriage and Insurance Paid to)<\/td>\n<\/tr>\n Delivery term<\/strong><\/td>\n | DES (Delivered Ex Ship) | \nDEQ (Delivered Ex Quay)<\/td>\n DAF (Delivered At Frontier) | \nDDU (Delivered Duty Unpaid) \nDDP (Delivered Duty Paid)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n From top (EXW) to bottom (DDP) the point of transfer in the transport chain moves\u00a0from the sellers premises to the buyers place. The second and third group specify\u00a0the shipment conditions, with freight and insurance unpaid or paid. For the first 3\u00a0groups the risk of loss or damage during (sea) transportation are with the buyer of\u00a0the goods, whereas for the fourth group all risks up to delivery are with the seller of\u00a0the goods.<\/p>\n EXW<\/strong> (Ex Works)<\/b> \u2013 Seller provides goods in his factory yard. Buyer is responsible for all the rest, including loading the goods onto trucks in the seller\u2019s yards. Best to add: \u201cloaded upon departing vehicle\u201d.<\/p>\n FCA<\/strong> (Free Carrier)<\/b> \u2013 Seller provides export licenses, customs clearances and port documents to first carrier (determined by buyer) in an agreed location within the export country. Useful for Multi Modal Transport (MMT) in land, air, or sea. Seller pays all port and customs inspection expenses. Seller\u2019s responsibility ends with delivery to carrier. Buyer pays all expenses from point of delivery (transport, insurance, special inspections).<\/p>\n FAS <\/strong>(Free Alongside Ship) <\/b>\u2013 Seller delivers goods to a loading quay, alongside a ship, in an agreed port in export country. Buyer obliged to clear goods for export after having received loading documents from seller. Buyer pays all port expenses and expenses related to required documentation. Use only for marine freight.<\/p>\n FOB<\/strong> (Free On Board)<\/b> \u2013 Seller delivers customs-cleared goods with bill of lading, export license, all taxes and duties paid clean (unharmed) on board a vessel. Seller pays all expenses until goods are clean on board. Buyer determines carrier and pays the carriage (including loading expenses if part of the transport costs). Marine freight only. Best to add: \u201cstowed and trimmed\u201d.<\/p>\n CFR<\/strong> (Cost and Freight)<\/b> \u2013 Seller pays all expenses and transport costs to port of discharge. But responsibility for damage or loss or additional expenses is buyer\u2019s after goods loaded and stowed under deck. Seller obtains customs and port clearances, licenses, contracts with the carrier and with the insurance company regarding transport of goods to the point of loading. Buyer must obtain the import licenses, release the goods in port of discharge, issue insurance and pay for transit and inspection of goods. Marine freight only.<\/p>\n CIF<\/strong> (Cost, Insurance, Freight) <\/b>\u2013 Seller arranges marine freight insurance for buyer and provides buyer with valid insurance policy in addition to obligations under CFR. Unless otherwise agreed, seller buys a limited \u201cC\u201d policy. Best to add: \u201cfree out\u201d. It is important to mention the type of insurance and coverage sought by buyer.<\/p>\n CPT<\/strong> (Carriage Paid To) <\/b>\u2013 Similar to CFR but when MMT involved (car, train, ship and then airplane, for instance). Instead of On Board \u2013 use First Carrier.<\/p>\n CIP<\/strong> (Carriage and Insurance Paid To) <\/b>\u2013 Similar to CIF but when MMT is involved. Responsibility reverts to buyer when goods delivered to First Carrier.<\/p>\n DAF<\/strong> (Delivered At Frontier) <\/b>\u2013 Seller to deliver export cleared goods at a precise point at the border of either import or export country. Buyer obliged to clear goods through customs terminal, to obtain import license and to bear all import related duties, fees and charges. Seller must inform buyer ETD (Expected Time of Delivery) and precise location of delivery. If preceded by international marine or air transport, point of delivery will follow the Main Carriage (used in train transport).<\/p>\n DES<\/strong> (Delivered Ex Ship)<\/b> \u2013 Marine freight only. Seller must deliver export cleared goods to buyer on board a ship in port of discharge but has no responsibility to clear the goods for import in the destination country, to unload them and to ship them to final destination within the buyer\u2019s country.<\/p>\n DEQ<\/strong> (Delivered Ex Quay)<\/b> \u2013 Marine freight only. Seller must deliver goods buyer outside the quay after unloading them from the ship and clearing them for import through port authorities and customs. Seller pays import taxes and port expenses. Seller must provide buyer with bill of lading and gate pass. Buyer must transport goods to his yards and if he does not must pay demurrage and warehousing.<\/p>\n DDU<\/strong> (Delivered Duty Unpaid) <\/b>\u2013 Seller must deliver goods to buyer in a location within the destination country but buyer must clear them for import through the port and customs authorities. Buyers must pay all taxes and expenses related to the clearance.<\/p>\n DDP<\/strong> (Delivered Duty Paid)<\/b> \u2013 Seller must deliver goods directly to buyer\u2019s location (or to any other address) after having fully cleared them for import and fully paid all taxes and expenditures related to such clearance. Best to add: \u201cDDP-VAT unpaid\u201d in case seller does not agree to pay the VAT.<\/p>\n For a full description of all obligations and risks associated with a specific term, please refer to INCOTERMS 2000 as published by the International Chamber of Commerce.<\/p>\n Marine Bill of Lading (MBL) is:<\/p>\n MBL is subject to the Hague conditions and MUST INCLUDE:<\/p>\n A Marine Bill of Lading must include these to be valid:<\/p>\n (a)\u00a0\u00a0 The words \u201cbill of lading\u201d and the words \u201clading\u201d or \u201cshipped\u201d (which prove that goods have been loaded on board vessel)<\/p>\n (b)\u00a0 Date of loading<\/p>\n (c)\u00a0 Confirmation of the shipping company<\/p>\n (d)\u00a0 Numbers of original bills of lading, if any<\/p>\n (e)\u00a0\u00a0 The words \u201cClean on Board\u201d<\/p>\n (f)\u00a0\u00a0\u00a0 Name of the shipper<\/p>\n (g)\u00a0 Name of the consignee or \u201cTo Order\u201d (of the shipper) together with endorsement of the shipper<\/p>\n (h)\u00a0 Name of vessel<\/p>\n (i)\u00a0\u00a0\u00a0\u00a0 Port of loading, final destination and is re-loading required<\/p>\n (j)\u00a0\u00a0\u00a0\u00a0 Name of parties to be notified upon arrival to the port of discharge<\/p>\n (k)\u00a0 Marks and numbers stamped on the packages<\/p>\n (l)\u00a0\u00a0\u00a0\u00a0 Abbreviated description of the goods (weight, number of units and volume \/ mass)<\/p>\n (m)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 How many original copies of the MBL are there and is the presentation of all original copies required to in order to release the goods<\/p>\n Shipped BL \u2013 Goods are on deck of ship<\/p>\n Received for Shipment \u2013 Prior to loading onto ship<\/p>\n Direct BL \u2013 From origin to destination, transshipment not allowed<\/p>\n Ocean Through BL \u2013 In case of transit involving a few carriers. In such a case, each carrier imposes its own conditions on each leg of the voyage and for the limited duration it handles the cargo.<\/p>\n Pure Through BL \u2013 First carrier must transport from port of loading to a mid-point and is responsible for damages to the goods.<\/p>\n Combined Transport BL \u2013 Pure BL which covers shipment by all means of transport (sea, air, land).<\/p>\n Forwarder BL \u2013 An agent\u2019s BL. Issued by an international forwarder.<\/p>\n Freight Forwarder BL \u2013 BLs of the International Forwarders Association \u2013 FIATA<\/p>\n","protected":false},"excerpt":{"rendered":" Incoterms The purpose of Incoterms is to provide a set of international rules for the\u00a0interpretation of the most commonly used<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[1591,1590,1778,1790,1791,1789,1787,1788,43,42],"class_list":["post-1018","post","type-post","status-publish","format-standard","hentry","category-thailand-car-exporter","tag-australia-4x4-exporter","tag-australia-auto-exporter","tag-australia-car-exporter","tag-dubai-car-dealer","tag-dubai-car-exporter","tag-export-cars-from-thailand","tag-incoterms","tag-shipping-cars","tag-thailand-car-dealer","tag-thailand-car-exporter"],"yoast_head":"\n |