Incoterms 2010 ppt - Weiss

Welcome to Weiss-Röhlig Incoterms®2010

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Incoterms® 2010

Incoterms® 2010 by the International Chamber of Commerce (ICC) The 7th revision of the globally-known trade terms developed and published by the International Chamber of Commerce will come into effect on 1 January 2011.

Renewals at a glance 

The new Incoterms DAT and DAP replace the former terms DAF, DES, DEQ, and DDU .



Definition of terminal according to Incoterms® 2010: Terminal includes any place, whether covered or not. It can be a quay, a warehouse, a container yard, a road, rail or air cargo terminal.



New transfer of costs and risks under the terms FOB, CFR and CIF .

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Incoterms® 2010

Incoterms define: 

Obligations, transfer of risks and allocation of costs in connection to delivery of a consignment from seller to buyer.



Up to which place the risks are borne by seller.



Up to which place the costs are borne by seller. Which responsibilities are borne by the seller.



Which responsibilities are borne by the buyer.

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Incoterms® 2010

Incoterms DO NOT define: 

Transfer of ownership



Terms of payment



Credit terms



Date of delivery



Court of jurisdiction and applicable law



Liability and warranty



Replacement delivery



Copyrights



Financing

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Incoterms® 2010

Use and validity 

It is not mandatory to use Incoterms in a sales contract.



Incoterms are a set of uniform trade terms aimed at helping the contracting parties (seller and buyer) to specify their sales contract exactly.

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Incoterms are not price clauses, but do have an impact on the pricing.



Sales contracts which are based on a former version (e.g. Incoterms 2000) remain valid according to the terms of that version.

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Theoretically, it is still possible to conclude sales contracts based on a former version of the Incoterms after 1 January 2011.

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Incoterms® 2010

Please note: 

In their sales contract, buyers and sellers should refer to the appropriate version of the Incoterms e.g. FOB Hamburg, Incoterms 2010.



It is possible to add clauses or change the wording of Incoterms. Examples: CFR Charleston port USA incl. THC, CUC, ISPS in Charleston FCA Vienna Airport loaded on aircraft DDP Hanoi Vietnam VAT unpaid Bear in mind that a change in the transfer of costs can result in a changed transfer of risks.

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Incoterms® 2010

Please note: 

Exact definition of location, terminal and port for a smooth transfer of costs and risk: exact address + location + country exact terminal + location + country If no exact point is specified but more than one is possible, the seller may select the point that is most suitable.



Definition of terminal according to Incoterms® 2010: Terminal includes any place, whether covered or not. It can be a quay, a warehouse, a container yard, a road, rail or air cargo terminal.

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Incoterms® 2010

Structure: seller‘s obligations (A)

Structure: buyer‘s obligations (B)

1. General obligations of the seller 2. Licences, authorisations, security clearances and other formalities 3. Contracts of carriage and insurance 4. Delivery 5. Transfer of risks 6. Allocation of costs 7. Notices to buyer 8. Transport document 9. Checking – packing – marking 10. Assistance with information and related costs

1. General obligations of the buyer 2. Licences, authorisations, security clearances and other formalities 3. Contracts of carriage and insurance 4. Taking delivery 5. Transfer of risks 6. Allocation of costs 7. Notices to seller 8. Proof of delivery 9. Inspection of goods 10. Assistance with information and related costs

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Incoterms® 2010

Terms for multimodal transports       

EXW (EX WORKS) FCA (FREE CARRIER) CPT (CARRIAGE PAID TO) CIP (CARRIAGE AND INSURANCE PAID TO) DAT (DELIVERED AT TERMINAL ) DAP (DELIVERED AT PLACE) DDP (DELIVERED DUTY PAID)

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Incoterms® 2010

Terms for multimodal transports    

FAS (FREE ALONGSIDE SHIP) FOB (FREE ON BOARD) CFR (COST AND FREIGHT) CIF (COST, INSURANCE AND FREIGHT)

These terms do not apply to any other means of transport.

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Incoterms® 2010

Electronic communication Any document referred to may be an equivalent electronic record or procedure if agreed or common practice between the contracting parties (A1, B1).

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Incoterms® 2010

Insurance Cover

Insert 'This is necessary only for the part of...

The seller is obliged to arrange transport insurance only under CIP and CIF terms.

But:  

This is necessary only for the part of transport, for which the seller carries the costs and the buyer carries the risk. The seller is obligated to arrange insurance with minimum cover only (Institute Cargo Clause C).

Recommended: Insurance cover in accordance with Institute Cargo Clause A

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Incoterms® 2010

EXW EX WORKS

FCA FREE CARRIER

CPT CARRIAGE PAID TO

Transfer of risks The seller bears the risks …

Allocation of costs The seller bears costs …

… until goods have been placed by the seller at the named place, not loaded on transport vehicle.

… until goods have been placed by the seller at the named place, not loaded on transport vehicle.

… until goods have been loaded on means of transport provided by the buyer, if named place is seller’s premises.

… until goods have been loaded on means of transport provided by the buyer, if named place is seller’s premises.

… until goods are placed at the disposal of the carrier ready for unloading, if named place is not seller’s premises.

… until goods are placed at the disposal of the carrier ready for unloading, if named place is not seller’s premises.

… until goods have been handed over to the carrier contracted by seller.

… until goods have been delivered to named place of destination and costs for unloading if these are for seller´s account according to the contract of carriage.

Export customs clearance

Import customs clearance

Insurance obligation

buyer

buyer

no obligation

seller

buyer

no obligation

seller

buyer

no obligation

seller

buyer

obligation of seller from point of transfer of risk to agreed place of destination

CIP CARRIAGE AND INSURANC PAID TO

… until goods have been handed over to the carrier contracted by seller.

… until goods have been delivered to named place of destination and costs for unloading if these were for seller´s account according to the contract of carriage.

DAT DELIVERED AT TERMINAL

… until goods have been unloaded from arriving means of transport and delivered at disposal of the buyer at the named place of destination.

… until goods have been unloaded from arriving means of transport and delivered at disposal of the buyer at the named place of destination.

seller

buyer

no obligation

DAP Delivered at Place

… until goods have been placed at the disposal of the buyer on the arriving means of transport ready for unloading at agreed point.

… until goods have been placed at the disposal of the buyer on the arriving means of transport ready for unloading at agreed point.

seller

buyer

no obligation

DDP DELIVERED DUTY PAID

… until goods have been placed at disposal of the buyer ready for unloading at agreed point.

… until goods have been placed at disposal of the buyer ready for unloading at agreed point and the costs for import customs clearance, duties, taxes and other charges payable upon import of the goods.

seller

seller

no obligation

FAS FREE ALONGSIDE SHIP

… until goods have been placed alongside ship at named port of shipment.

… until goods have been placed alongside ship at named port of shipment.

seller

buyer

no obligation

FOB FREE ON BOARD

… until goods have been placed on board the vessel at the named port of shipment.

… until goods have been placed on board the vessel at the named port of shipment.

seller

buyer

no obligation

CFR COST AND FREIGHT

… until goods have been placed on board the vessel at the named port of shipment.

… until goods have been delivered to agreed port of discharge and costs for unloading if these are for seller’s account according to the contract of carriage.

seller

buyer

no obligation

buyer

obligation of the seller from point of transfer of risk to agreed port of discharge

CIF COST, INSURANCE AND FREIGHT

… until goods have been placed on board the vessel at the named port of shipment.

… until goods have been delivered to agreed port of discharge and costs for unloading if these are for seller’s account according to the contract of carriage.

seller

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Incoterms® 2010

Insurance liability, assumption of risks and costs pursuant to Incoterms® 2010

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Incoterms® 2010

Insurance liability, assumption of risks and costs pursuant to Incoterms® 2010

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