Understanding the main features and NEW changes over old version 2000
JUAN DIEGO ALZATE GOMEZ
International Acredited Trainer Incoterms® 2010 rules Trainers Bureau International Chamber of Commerce-Paris-
“Incoterms” y su logo son una marca registrada
de la Cámara Internacional de Comercio (ICC).
INCOTERMS® 2010: WHAT’S NEW?
1. Introduction
2. 13 11 Incoterms® rules
3. Classification
4. Domestic and international trade
5. ‘Guidance notes’ + drawings
6. Electronic documents have full functional equivalence to paper documents
7. Adjustment insurance cover to the Institute Cargo Clauses 2009
8. First Incoterms® rules since 9/11 Incorporation ‘Security related information’ A10/B10
9. Terminal Handling Charges (THC) improved wording A6/B6
10. String sales
INCOTERMS® 2010: NEWS
Shortened introduction limited guidance notes per Incoterms® rule
13 11 Incoterms® rules
DAF+DES+DDU DAP;
DEQ DAT
DAP
Delivered at Place
DAT
Delivered at Terminal
Merging to new version 2011
5
Overview of former Incoterms rules
Equivalent Incoterms® 2000 rule
Equivalent Incoterms® 2010 rule
ex factory, ex mill, ex plantation, ex warehouse, ex store, etc.
EXW EXW
Free Carrier (FRC) FOR (Free On Rail) - FOT (Free On Truck) - Franco Wagon FOB Airport (FOA) FOQ (Free on Quay) FOW (Free on Wheels)
FCA
FCA
C.And F. C&F C+F CF
CFR
CFR
CAF CIF CIF
Freight or Carriage Paid to (FCP) CPT CPT
Freight or Carriage and Insurance Paid to CIP CIP
DAF
DAP
Ex Ship (EXS) DES
DDU
Ex Quay (EXQ) DEQ DAT
DAF (Named
place)
DAP (Named place
of destination)
DES (… named port
of destination)
DAP (Named place
of destination)
DEQ (… named port
of destination)
DAT (Named terminal at
port or at place of
destination)
DAT (Named
terminal at port ,
airport or any other
place of destination)
DAP (Named place of
destination)
DDU (Named
place)
four different categories:
1. “E”: the seller only makes the goods available to the buyer at the seller’s own premises;
2. “F”: the seller is called upon to deliver the goods to a carrier appointed by the buyer;
3. “C”: the seller has to contract for carriage, but without assuming the risk;
“D”: the seller bears all costs and risks needed to bring the goods to the place of destination.
two classes:
1. seven Incoterms® 2010 rules that can be used irrespective of the mode of transport selected and irrespective of whether one or more than one mode of transport is employed;
2. four “sea and inland waterway” rules where the point of delivery and the place to which the goods are carried to the buyer are both ports.
Goods are collected at
Goods are shipped from
Goods are shipped to
Goods are delivered at
Container - FCL
Inland terminal - LCL
Port terminal - LCL
Ship’s rail On board
Port customs
2010
Passing of risk FCA – CPT - CIP
FOB – CFR - CIF
A4 delivery
◦ Incoterms 2000: The seller must deliver the goods on board the vessel at the port of shipment […] on the date or within the agreed period.
◦ Incoterms® 2010: The seller must deliver the goods either by placing them on board the vessel or by procuring the goods so delivered. […]
In string sales there is no actual delivery of goods but a transfer of B/L’s several professional organisations of commodity traders excluded the application of the Incoterms® rules from their general conditions and model contracts. This gap has now been filled. A transfer of a B/L now equals ‘delivery’.
A THE SELLER’S OBLIGATIONS
General obligations of the seller Licences, authorizations, security
clearances and other formalities Contracts of carriage and
insurance Delivery Transfer of risks Division of costs Notice to the buyer Delivery document Checking – packaging – marking Assistance with information and
related costs
A THE SELLER’S OBLIGATIONS
Provision of goods in conformity with the contract
Licences authorisations and formalities Contracts of carriage and insurance Delivery Transfer of risks Division of costs Notice to the buyer Proof of delivery, transport document or
equivalent electronic message Checking – packaging - marking Other obligations
B THE BUYER’S OBLIGATIONS
General obligations of the buyer
Licences, authorizations, security clearances and other formalities
Contracts of carriage and insurance
Taking delivery
Transfer of risks
Division of costs
Notice to the seller
Proof of delivery
Inspection of goods
Assistance with information and related costs
B THE BUYER’S OBLIGATIONS
Payment of the price
Licences, authorizations and formalities
Contracts of carriage and insurance
Taking delivery
Transfer of risks
Division of costs
Notice to the seller
Proof of delivery, transport document or equivalent electronic message
Inspection of goods
Other obligations
Structure of the Incoterms®
rules: 10 articles A THE SELLER’S OBLIGATIONS
General obligations of the seller
Licences, authorizations, security clearances and other formalities
Contracts of carriage and insurance
Delivery
Transfer of risks
Division of costs
Notice to the buyer
Delivery document
Checking – packaging – marking
Assistance with information and related costs
B THE BUYER’S OBLIGATIONS
General obligations of the buyer
Licences, authorizations, security clearances and other formalities
Contracts of carriage and insurance
Taking delivery
Transfer of risks
Division of costs
Notice to the seller
Proof of delivery
Inspection of goods
Assistance with information and related costs
First you analyse and define the relevant obligation
Then you select the article that settles the relevant obligation
Then you look up the applicable Incoterms® rule.
•Cargo
•Invoices
A1
•Contracts
•Insurances
A3
•Delivery
Document
A8
Private Duties/tasks
•Regulations
•Customs
•Formalities
A2
•Assitance
•Other docs, security
related information
•NOT succes obligations
A10
Goverment, regulations
• Place
• Point
Delivery
MAIN OBLIGATION
B5
B6
•NOTIFY ABOUT: Shipments, delivery
times, carriers, customs and security. A7
•Checking, Marking, Packing. A9
OTHER OBLIGATIONS
THE INNER STRUCTURE ABOUT INCOTERMS The way an expert decides
“Incoterms” a
nd its
log a
re T
radem
ark
of
Inte
rnational Cham
ber
of
Com
merc
e
Desig
neb by:
Juan D
iego A
lzate
, In
tern
ational Tra
iners
Bure
au, In
tern
ational Cham
ber
of Com
merc
e
RISK
A5
A6 COST
MASTERCLASS on Incoterms ®2010 rules is
only provided by ICC at Headquarter (Paris), or National Committees and local partner by an Official Accredited Trainer belonging to Trainers Bureau of ICC.
OFFICIAL AND only source (Official texts)
Incoterms®2010 By International Chamber of Commerce. ICC rules for the use of domestic and international trade terms. Publication 715E (English) , 715S (Spanish and English), ISBN 978-92-842-0080-1 , 978-84-89924-46-8. ICCBOOKS.COM
end