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    Price Terms / INCOMTERMS
    INCOMTERMs or international commercial terms are a series of international sales terms widely used throughout the world. They are used to divide transaction costs and responsibilities between buyer and seller and reflect state-of-the-art transportation practices. They closely correspond to the U.N. Convention on Contracts for the International Sale of Goods. Incomterms deal with questions related to the delivery of the products from the seller to the buyer. This includes the carriage of products, export and import clearance responsibilities, who pays for what, and who has risk for the condition of the products at different locations within the transport process. Incomterms are always used with a geographical location and do not deal with transfer of title. They are devised and published by the International Chamber of Commerce (ICC). The English text is the original and official version of Incomterms 2000, which have been endorsed by the United Nations Commission on International Trade Law (UNCITRAL). Authorized translations into 31 languages are available from ICC national committees.
     
    Group E - Departure:
    EXW. Ex Works (named place): the seller makes the goods available at his premises.
     
    Group F - Main Carriage Unpaid:
    FCA. Free Carrier (named place): the seller hands over the goods, cleared for export, into the custody of the first carrier (named by the buyer) at the named place. This term is suitable for all modes of transport, including carriage by air, rail, road, and containerised / multi-modal transport.
    FAS. Free Alongside Ship (named loading port): free Alongside Ship: the seller must place the goods alongside the ship at the named port. The seller must clear the goods for export; this changed in the 2000 version of the Incomterms. Suitable for maritime transport only.
    FOB. Free On Board (named loading port): the classic maritime trade term, Free On Board: seller must load the goods on board the ship nominated by the buyer, cost and risk being divided at ship's rail. The seller must clear the goods for export. Maritime transport only.
     
    Group C - Main Carriage Paid:
    CFR. Cost and Freight (named destination port): seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods have crossed the ship's rail. Maritime transport only.
    CIF. Cost, Insurance and Freight (named destination port): exactly the same as CFR except that the seller must in addition procure and pay for insurance for the buyer. Maritime transport only.
    CPT. Carriage Paid To (named place of destination): the general / containerized / multimodal equivalent of CFR. The seller pays for carriage to the named point of destination, but risk passes when the goods are handed over to the first carrier.
    CIP. Carriage and Insurance Paid to (named place of destination): the containerised transport / multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.
     
    Group D - Arrival:
    DAF. Delivered At Frontier (named place) is an Incomterm. It can be used when the goods are transported by rail and road. The seller pays for transportation to the named place of delivery at the frontier. The buyer arranges for customs clearance and pays for transportation from the frontier to his factory. The passing of risk occurs at the frontier.
    DES. Delivered Ex Ship (named port) is an Incomterm. Where goods are delivered ex ship, the passing of risk does not occur until the ship has arrived at the named port of destination and the goods made available for unloading to the buyer. The seller pays the same freight and insurance costs as he would under a CIF arrangement.
    DEQ. Delivered Ex Quay (named port) is an Incomterm. It means the same as DES, but the passing of risk does not occur until the goods have been unloaded at the port of destination.
    DDU. Delivered Duty Unpaid (named destination place) is an Incomterm. It means that the seller delivers the goods to the buyer to the named place of destination in the contract of sale. The goods are not cleared for import or unloaded from any form of transport at the place of destination. The buyer is responsible for the costs and risks for the unloading, duty and any subsequent delivery beyond the place of destination. However, if the buyer wishes the seller to bear cost and risks associated with the import clearance, duty, unloading and subsequent delivery beyond the place of destination, then this all needs to be explicitly agreed upon in the contract of sale. The term is used irrespective of the mode of transport. However when the delivery is to take place at the port of destination, either on board the vessel or on the quay, then the terms DES or DEQ shall be used.
    DDP. Delivered Duty Paid (named destination place) is an Incomterm. It means that the seller pays for all transportation costs and bears all risk until the goods have been delivered and pays the duty. Incomterm: International Commercial Term.
     
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