INCOTERMS 2010

SCHEME  TRANSITION  RESPONSIBILITY FOR THE CARGO  ACCORDING TO INCOTERMS 2010


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Group E &mdash ; Place of dispatch (Departure):

EXW (abbreviated from English Ex Works lit. from the place of work; German — ab Werk, Russian « pickup") a term meaning that the seller's responsibility ends when the goods are transferred to the buyer or a carrier hired by him at the seller's premises (warehouse, store, etc.); the seller is not responsible for loading the goods onto transport; the buyer bears all costs for the removal of goods from the warehouse, transportation, customs clearance, etc. Always used with the location of the seller, for example: "self-delivery from Odessa"; - EXW ODESSA ".

Group F — Main Carriage Unpaid:

FCA (Free Carrier) or Free Carrier (…with location) —term meaning that the seller fulfills his an obligation to deliver when he delivers the goods, cleared of export duties, to the carrier appointed by the buyer at the named place. The specified place of delivery affects the obligation to load and unload the goods at that place. If delivery takes place at the seller's premises, the seller is responsible for shipping. If the delivery takes place in any other place, then the seller is not responsible for the shipment.

FAS or Free Alongside Ship - means that the seller bears the cost of delivery to the port of departure. The seller fulfills his obligations to deliver the goods at the moment when the goods are placed along the side of the vessel on the berth or on lighters (at the agreed port of shipment). The buyer pays the costs of loading, chartering the vessel, insurance, unloading and delivery to the destination. Risks pass at the moment of delivery to the berth of the port of loading.

FOB vessel; the costs of delivering the goods on board the vessel shall be borne by the seller. In some ports, for deliveries on FOB terms, loading costs are borne by the buyer. The risk of accidental loss of property or damage to it rests with the seller — until the goods cross the board of the vessel, and on the buyer — from the specified moment. As a rule, ownership of the goods passes from the seller to the buyer at the same time as the risk passes. According to Incoterms, FOB means "goods are loaded on the customer's ship." An indication of the FOB terms in the contract means that the seller pays for the delivery of the goods until the moment of loading, plus the loading itself on board. It is also responsible for clearing the goods from duties (for export delivery). The buyer pays for freight, insurance, unloading costs and transportation to the destination. The transfer of risks occurs at the moment when the cargo crosses the side of the ship. As a rule, FOB also indicates the port of loading; for example "FOB port of Novorossiysk".

 Group C — Main Carriage Paid:

CFR (Eng. Cost and Freight — cost and freight) — a term meaning that the seller pays for the delivery of goods to the port, loading and charter of the vessel, and also ensures the passage of customs procedures when exporting goods (including paying duties). The buyer pays for the insurance of the goods. The risk of loss or damage, as well as additional costs, after the goods pass the ship's rail passes to the buyer. CFR terms of delivery are used only in case of transportation of goods by sea or river transport.

CIF (eng. Cost, Insurance and Freight — cost, insurance and freight) — means that the seller has delivered when the goods have passed the ship's rail at the port of shipment, and the selling price includes the value of the goods, freight or transport costs, and the cost of shipping insurance. CIF terms of delivery are largely identical to those of CFR. In addition to liability under CFR terms, the seller under CIF terms must obtain a transferable insurance policy to cover the risks associated with the delivery of goods by insurance companies. The insurance policy must cover the CIF price plus 10 percent and, if possible, be in the currency of the contract. The seller's liability for the goods ends when the goods have been delivered to the sea carrier or have been loaded on board a ship, depending on the terms of the contract. This term is only suitable for normal maritime transport, not road/rail ferries or container ships.call.

CPT (Carriage Paid To — Carriage Paid To) is a term that applies to all modes of transport, including multimodal transport. The seller bears the cost of freight and transportation to the destination. The buyer pays for cargo insurance. Risks pass when the goods are delivered to the first carrier.

CIPor Carriage and Insurance Paid to — means that the seller will deliver the goods to the named carrier. In addition, the seller must pay the costs associated with the carriage of the goods to the named destination. The seller's liability ends when he delivers the goods to the carrier named by the buyer. If there are several carriers, then the liability ends after delivery of the goods to the first carrier. The buyer bears all risks and any additional costs incurred after the goods have been delivered. This term is similar to CPT, except that the seller also pays for insurance. The seller is required to provide insurance with minimal coverage only. Additional insurance is the responsibility of the buyer or negotiated with the seller. Also, under the terms of CIP, customs procedures for the export of goods lie with the seller.

Group D — Delivery (Arrival):

DAT when using more than one mode of transport. It means that the seller delivers the goods to a terminal agreed with the buyer at the named port or other place of destination. The seller must pay the costs associated with the carriage of the goods to the named destination. "Terminal" can be any place, for example, a pier, a warehouse, a container yard, an air, road or rail terminal. The seller bears all risks associated with the delivery and unloading of the goods. The parties are advised to determine the terminal as precisely as possible and, if possible, a certain point on the terminal, with the delivery of the goods to which the seller's obligations are considered fulfilled.

DAP type of transport. The term means that the goods, ready for unloading, are handed over to the buyer on the arrived vehicle at the agreed destination. The seller bears all risks associated with the delivery of the goods to the named place. The parties should determine as precisely as possible the point at the agreed destination, as the risks up to that point are borne by the seller. The seller must pay the costs associated with the carriage of the goods to the named destination.

DDP (eng. Delivered, Duty Paid, lit. "delivered, duty paid") — used with an indication of the place of arrival; the seller's responsibility ends after the goods have been delivered to the named place in the buyer's country; all risks, all costs for the delivery of goods (taxes, duties, etc.), responsibility for damage and loss of goods, including duties and other payments paid upon import, up to this point the seller bears, he is also responsible for customs clearance; provisions may be added to exempt the seller from paying certain additional formalities; this type of distribution of responsibility can be used regardless of the type of delivery)

The terms of delivery DAF, DES, DEQ, DDU used in earlier versions of INCOTERMS have been removed in INCOTERMS 2010.