INCOTERM 2010 - Presentation

7/31/2019 INCOTERM 2010 - Presentation

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LOGO

INCOTERMSGROUP 1

T TH THY LIN

NGUYN NGC KIM NGNNGUYN THANH NGUYT QUT TH THY LIN

HUNH THY TRANGTRN TH THANH THY

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INCOTERM DEFINITIONS1

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INCOTERMS

GROUP 1

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INCOTERMS

Incoterms - International Commercial Terms: A set of

international rules issued by ICC for the interpretation of trade

terms.1

The first Incoterm rules were published in 1936, then it is

revised and added six times in the 1953, 1967, 1976, 1980,1990, 2000. The latest edition is the Incoterms 2010 which are

effective from January 1, 2011.

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INCOTERMS

INCOTERMS identify the obligations placed on

the parties to the contracts in terms of:

- Responsibility relating the costs and the division

when shipping the goods.

- Distribution of risks associated with themovement of goods.

- Where these risks transfer to another party

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Who does what, who pays for what, when

risk in the goods passes from seller to

buyer.

When delivery occurs, as well as issues suchas insurance, export and import clearance and

the allocation of other costs pertaining to thedelivery of goods.

What do INCOTERMS cover?

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tThis is an example text. Go ahead and replace it with your own text. tThis is an example

text. Go ahead and replace it with your own text.This is an example text. Go ahead and replace it with your own text.

There is nothing on ownership/title to the goods, nothing

in detail on payment obligations (when, how, what security,

against what documents), nothing on detailed vesselrequirements, force majeure, termination, insolvency.

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In short INCOTERMS do not constitute a complete

contract of sale, but rather provide convenient,

internationally recognised rules for the sale of goods.

They work well as general outline of the contract of sale

which is to be specified and adjusted with further terms and

conditions of the contract

What do INCOTERMS not cover?

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What is Incoterms 2010?

Incoterms 2010 are

divided into two

categories:+ Clauses for all types

of transport: EXW,

FCA, CPT, CIP, DAT,

DAP, DDP

+ Clauses for sea and

inland water transport:

FAS, FOB, CFR, CIF.

Incoterms 2010

1 Incoterms 2010 consist

of 11 terms.

Four terms wereeliminated (DAF, DEQ,

DES, DDU) and two

were added: DAT &

DAP

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Incoterms 2010

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- No, it isnt. Because Incoterms are not law, its onlyprovide a set of international rules for obligations,

risk and cost while the buyers get the goods to thesellers.

- The goal of the new Incoterms 2010 is to simplify

the drafting of sale contracts by clearly defining

some of the obligations of both buyers and sellers ,

thus avoiding misunderstandings , which might

otherwise occur.

Is Incoterms 2010 always legally binding in

international sales contracts?

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- Incoterms cant be used as a completed foreign contract- So, we can use Incoterms 2000 in international sales

contracts. however, incoterms 2010 is still encouragedbecause it provides the new standards to current economic

conditions

- Whether selecting any conditions Incoterms, theparties still need to know that the interpretation of

contracts also govern its own strong traditions of each

port or locality concerned.

Is Incoterms 2010 always legally binding in

international sales contracts?

NguynNgc Kim Ngn


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STRUCTURE OF INCOTERMS

2010

- Rules for Any mode of transportEXW EX WORKS

FCA FREE CARRIER

CPT CARRIAGE PAID TOCIP CARRIAGE AND INSURANCE PAID TO

DAT DELIVERED AT TERMINAL

DAP DELIVERED AT PLACE

DDP DELIVERED DUTY PAID

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STRUCTURE OF INCOTERMS

2010

-Rules for Sea and inland waterway transport only

FAS FREE ALONGSIDE SHIP

FOB FREE ON BOARD

CFR COST AND FREIGHT

CIF COST INSURANCE AND FREIGHT

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RESPONSIBILITY OF SELLER AND BUYER UNDEREACH TERM

FCA

EXW

CPT

The Seller's only responsibility is to make the goods available

at the Seller's premises.

The Buyer bears full costs and risks of moving the goods from

there to destination.

The Seller delivers the goods, cleared for export, to the

carrier selected by the Buyer.

The Seller loads the goods if the carrier pickup is at the

Seller's premises. From that point, the Buyer bears the costs

and risks of moving the goods to destination

The Seller pays for moving the goods to destination. From

the time the goods are transferred to the first carrier, the Buyer

bears the risks of loss or damage.

Hunh Thy Trang


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RESPONSIBILITY OF SELLER AND BUYER UNDEREACH TERM

DAT

CIP

DAP

The Seller pays for moving the goods to destination. From the

time the goods are transferred to the first carrier, the Buyer bears

the risks of loss or damage. The Seller, however, purchases the

cargo insurance.

The Seller delivers when the goods, once unloaded from the

arriving means of transport, are placed at the Buyer's disposal at

a named terminal at the named port or place of destination.

The Seller bears all risks involved in bringing the goods to and

unloading them at the terminal at the named port or place ofdestination.

The Seller delivers when the goods are placed at the Buyer's

disposal on the arriving means of transport ready for unloading

at the names place of destination. The Seller bears all risks

involved in bringing the goods to the named place. Hunh Thy Trang


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16Theo http://www.orey-shipping.com/60Incoterms.pdf

Hunh Thy Trang


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What is the difference between: FOB & FCA, CIF & CIP, CFR &

CPT?

FOB (Free On Board) (Rule for sea and inland waterway transport):

Seller delivers the good (cleared for export) on board the vesselnominated by buyer at the port of delivery .

Cost and risk change from seller to buyer as the goods pass over

the imaginary vertical line defined by the ship's rail.

FCA (Free Carrier) (Rule for any mode of transport):Seller hands over the goods to buyer's designated carrier (pre-cleared for export) at the named place.

Cost and risk change from seller to buyer as soon as the goods

are accepted and signed for by the buyer's designated carrier.

The differences between FOB & FCA:

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What is the difference between: FOB & FCA, CIF & CIP, CFR &

CPT?

CFR- Cost and Freight (Rule for sea and inland waterway transport):The seller delivers the goods on board the vessel and pays the cost and

freight necessary to bring the goods to the named port of destination.Risk passes and cost are transferred at difference places, the risk passes

when the goods are on board the vessel (not until the goods reach the

destination); the cost of carriage will be covered by the seller until the goods

reach destination.

CPT- Carriage Paid To (Rule for any mode of transport):The seller delivers the goods (cleared for export) to the carrier or another

person nominated by the seller and seller arranges and pays for the carriage up

to the named place of destination.

Risk to the goods transfers from the seller to the buyer when good so

delivered to the first carrier not until the goods reach destination.

The differences between CFR & CPT:

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FOB CIF CFR rules for sea and inland waterway transport, FCA CIP

CPT are applicable to goods for transport by air, rail, road and

containerised/multi-modal transport.

FOB, CIF, CFR may not be appropriate for use where goods are handed

over to the carrier before they are on board the vessel, for example goods in

containers, which are typically delivered at a terminal. In such situations, the

FCA, CIP, CPT rule should be used.

When shouldnt FOB, CIF, CFR be used?

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THANK YOU

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INCOTERM 2010 - Presentation

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