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INCO Terms

INCO Terms. 2. Determine (Incoterms) Terms of Sale. Exporter must know the terms before preparing a quotation or a pro forma invoice. Incoterms are standardized names created by the International Chamber of Commerce (ICC) for describing terms of sale. Diagram of INCO terms.

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INCO Terms

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  1. INCO Terms

  2. 2. Determine (Incoterms) Terms of Sale • Exporter must know the terms before preparing a quotation or a pro forma invoice. • Incoterms are standardized names created by the International Chamber of Commerce (ICC) for describing terms of sale.

  3. Diagram of INCO terms http://www.export911.com/e911/export/incoterm

  4. Most Common Incoterms

  5. Most Common Incoterms

  6. FOB Example FOB, New Orleans for 3 ice makers. You as the exporter are responsible for all costs in delivering the goods to New Orleans and loading the icemakers on board a vessel named by the German firm. You are responsible for arranging any export clearances (licenses, taxed, fees). The German firm is responsible for booking space for cargo and pays for the ocean freight.

  7. CIF Example CIF (Named foreign port of destination) YCI quotes its German customer CIF Bremerhaven for 3 ice makers. YCI arranges for and pays all transportation costs to the Port of Bremerhaven. YCI arranges and pays for the marine insurance policy. YCI, however, is only responsible for risk of loss until loading of the icemakers on board the vessel in New Orleans.

  8. FAS Example YCI, the U.S. exporter, quotes the German firm FAS, New Orleans for 3 ice makers. YCI is responsible for all costs in getting the goods to the Port of New Orleans alongside the nominated vessel prior to sailing time. The German buyer is responsible for booking space, paying ocean freight and arranging for all export clearances.

  9. Source for INCOTERMS For a complete list of INCOTERMS, including responsibilities of the parties, see Incoterms 2000. http://www.dsl.co.nz/index.asp?page=incoterm.htm

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