INTERNATIONAL FREIGHT FLOWS

1. INTERNATIONAL FREIGHT FLOWS Supplier Inland freight Export customs Inland freight Import customs Buyer

2. INCOTERMS • Set of international rules for interpretation of trade terms used in foreign trade • Cost [cost include cost of goods and/or freight & insurance till delivery at contracted point] • Risks and responsibilities of the Buyer and Seller • Transfer of Property

3. INCOTERMS • Delivery to named port/place • Deliver goods into custody of freight agent, • carrier or owner • Transport methods: • Rail • Road • Sea • Air • Inland waterway • Multi-modal (combination)

4. INCOTERMS 2000 • EXW – Ex Works • FCA – Free Carrier • FAS – Free alongside Ship • FOB – Free on Board • CFR – Cost & Freight • CIF – Cost Insurance & Freight • CPT – Carriage Paid to • CIP – Carriage Insurance Paid • DAF – Delivered at Frontier • DES – Delivered Ex Ship • DEQ – Delivered Ex Quay • DDU – Delivered Duty Unpaid • DDP – Delivered Duty Paid

5. INCOTERMS 2000 • Origin Term (EXW) : {Departure} • Seller only makes goods available at the seller’s • own premises • F – Terms ( FCA,FAS,FOB) • {Main Carriage Unpaid} • Seller is called upon to deliver the goods to a carrier • appointed by the purchaser. Seller will be responsible • only for handing over the goods to the purchaser’s • international carrier in the country of export

6. INCOTERMS 2000 • C – Terms (CFR,CIF,CPT,CIP) • {Main Carriage Paid} • Seller will be responsible for handing over the goods • to the purchaser’s international carrier in the country of export duly paid for freight and/or insurance till port of entry/destination in the importer’s country • D – Terms (DAF,DES,DEQ,DDU,DDP) {Arrival} • Seller will be responsible for handing over the goods to • the purchaser in the purchaser’s country at the port of entry/final destination duty cleared/ uncleared

7. INTERNATIONAL FREIGHT FLOWS INCOTERMS 2010 INTERNATIONAL FREIGHT FLOWS INCOTERMS 2000 EXW FCA FOB FAS Export customs Supplier Inland freight CPT CIF CIP CFR DDP DAF DES DDU DAT DEQ DAP Inland freight Import customs Buyer

8. INTERNATIONAL FREIGHT FLOWS INCOTERMS 2010 EXW FCA FOB FAS Export customs Supplier Inland freight CPT CIF CIP CFR DDP DAT DAP Inland freight Import customs Buyer

10. INCOTERMS 2010 • EXW – Ex Works • FCA – Free Carrier • FAS – Free alongside Ship • FOB – Free on Board • CFR – Cost & Freight • CIF – Cost Insurance & Freight • CPT – Carriage Paid to • CIP – Carriage Insurance Paid • DAT – Delivered at Terminal • DAP – Delivered at Place • DDP – Delivered Duty Paid

11. INCOTERMS 2010 • Origin Term (EXW) : {Departure} • Seller only makes goods available at the seller’s • own premises • F – Terms ( FCA,FAS,FOB) • {Main Carriage Unpaid} • Seller is called upon to deliver the goods to a carrier • appointed by the purchaser. Seller will be responsible • only for handing over the goods to the purchaser’s • international carrier in the country of export

12. INCOTERMS 2010 • C – Terms (CFR,CIF,CPT,CIP) • {Main Carriage Paid} • Seller will be responsible for handing over the goods • to the purchaser’s international carrier in the country of export duly paid for freight and/or insurance till port of entry/destination in the importer’s country • D – Terms (DAT,DAP,DDP) {Arrival} • Seller will be responsible for handing over the goods to • the purchaser in the purchaser’s country at the port of entry/final destination duty cleared/ uncleared