Episode11Readings - INCOTERMS 2000 The purpose of Incoterms...

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INCOTERMS 2000 The purpose of Incoterms 2000 is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. Thus, the uncertainties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree. The scope of Incoterms 2000 is limited to matters relating to the rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold. Incoterms 2000 do NOT apply to the contract of carriage. A brief description of each Incoterm group is outlined below: REFERS TO ANY MODE OF TRANSPORT REFERS TO SEA & INLAND WATERWAY TRANSPORT ONLY GROUP E Departure The seller makes the goods available to the buyer at the seller’s own premises. EXW Ex Works GROUP F Main Carriage Unpaid The seller is called upon to deliver the goods to a carrier appointed by the buyer. FCA Free Carrier FAS Free Alongside Ship FOB Free On Board GROUP C Main Carriage Paid The seller has to contract for carriage, but without assuming the risk of loss of or damage to the goods or additional costs due to events occurring after the shipment and dispatch. CPT Carriage Paid To CIP Carriage & Insurance Paid To CFR Cost & Freight CIF Cost, Insurance & Freight GROUP D Arrival The seller has to bear all costs and risks needed to bring the goods to the country of destination. DAF Delivered At Frontier DDU Delivery Duty Unpaid DDP Delivery Duty Paid DES Delivered Ex Ship DEQ Delivered Ex Quay EX WORKS (EXW) The seller delivers when he places the goods at the disposal of the buyer at the seller‘s premises or another named place (i. e. works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle. This term represents the MINIMUM OBLIGATION FOR THE SELLER , and the buyer has to bear all costs and risks involved in taking the goods from the seller‘s premises. However, if the parties wish the seller to be responsible for the loading of the goods on departure and to bear the risks and all costs of such loading, this should be made clear by adding explicit wording to this effect in the contract of sale. This term should not be used when the buyer cannot carry out the export formalities directly or indirectly. In such circumstances, the FCA term should be used, provided the seller agrees that he will load at his cost and risk. FREE CARRIER (FCA) The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller‘s premises, the seller is responsible for loading. If delivery occurs at any other place, the seller is not respons ible for unloading.
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