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Incoterms

Incoterms . Amadou Caroline Kwafo Françoise Luzolanu Michael. Introduction. Universally recognised set of definitions of international trade terms Recognised by courts and other authorities Define the trade contract responsibilities and liabilities between buyer and seller

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Incoterms

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  1. Incoterms Amadou Caroline Kwafo Françoise Luzolanu Michael

  2. Introduction • Universally recognised set of definitions of international trade terms • Recognised by courts and other authorities • Define the trade contract responsibilities and liabilities between buyer and seller (who pays for what, who has risk for the conditions of the product at each step of the process)

  3. Introduction • Devised an published by the ICC • ICC introduced Incoterms in 1936 • Incoterms 2000 • 4 groups E, F, C and D and in all 13 main terms • It is invaluable and a cost-saving tool

  4. EXW - Ex Works Goods available only at seller’s premises. Buyer: loads the goods on truck or container at the seller’s premises, and takes into account the subsequent costs and risks.

  5. FCA - Free Carrier Delivery at the specified point of departure: the seller’s premises or a named cargo terminal / railroad station Buyer: main carriage/freight, cargo insurance and other costs and risks

  6. FAS - Free Alongside Ship Seller: places the goods alongside the ship at the named port, loaded at his expense. Buyer: pays loading fee, main carriage/freight, cargo insurance and other costs risks.

  7. FOB - Free On Board Delivery of goods on board the vessel at the port of origin is at the seller’s expense. Buyer is responsible for loading fee, main carriage/freight, cargo insurance and other costs risks.

  8. CFR - Cost and Freight Seller: pays the costs and freight to bring the goods to the port of destination. Risk: transferred once the goods have crossed the ship’s rail.

  9. CIF - Cost Insurance and Freight Used exactly the same way as CFR except that Seller: must in addition procure and pay for insurance for the cargo insurance and delivery of goods to the port of destination Buyer: responsible for the import customs clearance & other costs and risks

  10. CPT - Carriage Paid To Seller delivers the goods at the named place of destination at his expense. Buyer assumes the cargo insurance, import customs clearance, payment of customs duties and taxes, and other costs and risks. Risk transferred at the delivery of goods

  11. CIP - Carriage & Insurance Paid To Seller delivers the goods on the ship. On board, the risk is transferred to the buyer. Buyer is accountable for the import customs clearance, payment of customs duties and taxes, and other costs and risks until goods reach their final destination.

  12. DAF - Delivered At Frontier Delivery of goods is done at the specified point at the frontier at the seller's expense. Buyer is responsible for the import customs clearance, payment of customs duties and taxes. The transfer of risk is made at the frontier

  13. DES - Delivered Ex Ship Seller assumes expenses linked to the delivery of goods. At the arrival of the ship, the risk is transferred to the buyer. Buyer is accountable for the unloading fee, import customs clearance, payment of customs duties and taxes, cargo insurance, and other costs

  14. DEQ - Delivered Ex Quay Delivery of goods is done to the quay of the port at the seller's expense. He is also responsible for the import customs clearance and payment of customs duties and taxes at the buyer's end. Buyer assumes the cargo insurance and other costs and risks

  15. DDU - Delivered Duty Unpaid Delivery of goods and the cargo insurance to the final destination, which is often the project site or buyer's premises, is done at the seller's expense. Buyer is responsible for the import customs clearance and payment of customs duties and taxes

  16. DDP - Delivered Duty Paid Seller is responsible for most of the expenses, which include the cargo insurance, import customs clearance, and payment of customs duties and taxes at the buyer's end, and the delivery of goods to the final point at destination, which is often the project site or the buyer's premises. It is a “door to door” delivery. Risk is transferred when the goods are delivered

  17. Conclusion • Incoterms cannot be applied by themselves to a variety of situations, of medium of transports, technologies.... • They must be supplemented by additional details adapted to these particular case. • Define the geographical points where the transfers of risks and expenses will take place.

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