Incoterms 2010 buyers and sellers responsibility

Incoterms 2020 buyers and sellers responsibility

Incoterms 2020 buyers and sellers responsibility

Incoterms 2020 buyers and sellers responsibility

Rules for Any Mode(s) of Transport

The seven rules defined by Incoterms 2010 for any mode(s) of transportation are:

  • 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
Are Incoterms changing in 2020?
The International Chamber of Commerce (ICC) has released the Incoterms 2020 update of their international trade terms for the sale of goods. The new version of Incoterms 2020 takes effect as of January 1, 2020. … Some of the new issues and changes in the new edition of the Incoterms 2020 are: DAT is changing to DPU.
DPU – Delivered At Place Unloaded (replaces Incoterm® 2010 DAT)
DPU replaces the former Incoterm® DAT (Delivered At Terminal). The seller delivers when the goods, once unloaded are placed at the disposal of the buyer at a named place of destination.
The seller bears all risks involved in bringing the goods to, and unloading them at the named place of destination.
Responsibility Matrix for Contract of Sale
(Note: This chart is a general guide only. For full definitions see INCOTERMS 2020)
EXW FCA FCA FAS FOB CFR CIF CPT CIP DAP DPU DDP
Loaded Not Unloaded
Free Alongside Free On Board Cost, Insurance Carriage Carriage & Delivered At Delivered Delivered
INCOTERMS 2010
Ex-Works Free Carrier Free Carrier Cost & Freight
Sellers
Premises Ship (Port) & Freight Paid To Insurance Paid Place
At Place
Unloaded Duty Paid
Any Mode of Any Mode of Any Mode of Maritime & Maritime & Maritime & Maritime & Any Mode of Any Mode of Any Mode of Any Mode of Any Mode
Inland Inland Inland Inland of Transport Transport Transport Transport Transport Transport Transport Waterway Only Waterway Only Waterway Only Waterway Only Transport

1. EXW – Ex Works (named place of delivery)
The seller makes the goods available at its premises. This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included. EXW means that a seller has the goods ready for collection at his premises (works, factory, warehouse, plant) on the date agreed upon. The buyer pays all transportation costs and also bears the risks for bringing the goods to their final destination. The seller doesn’t load the goods on collecting vehicles and doesn’t clear them for export. If the seller does load the good, he does so at buyer’s risk and cost. If parties wish seller to be responsible for the loading of the goods on departure and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale.
2. FCA – Free Carrier (named place of delivery)
The seller hands over the goods, cleared for export, into the disposal of the first carrier (named by the buyer) at the named place. The seller pays for carriage to the named point of delivery, and risk passes when the goods are handed over to the first carrier.
3. CPT – Carriage Paid To (named place of destination)
The seller pays for carriage. Risk transfers to buyer upon handing goods over to the first carrier.
4. CIP – Carriage and Insurance Paid to (named place of destination)
The containerized 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.
5. DAT – Delivered at Terminal (named terminal at port or place of destination)
Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal.
6. DAP – Delivered at Place (named place of destination)
Seller pays for carriage to the named place, except for costs related to import clearance, and assumes all risks prior to the point that the goods are ready for unloading by the buyer.
7. DDP – Delivered Duty Paid (named place of destination)
Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. This term places the maximum obligations on the seller and minimum obligations on the buyer.

Rules for Sea and Inland Waterway Transport

The four rules defined by Incoterms 2010 for international trade where transportation is entirely conducted by water are:

1. FAS – Free Alongside Ship (named port of shipment)

The seller must place the goods alongside the ship at the named port. The seller must clear the goods for export. Suitable only for maritime transport but NOT for multimodal sea transport in containers (see Incoterms 2010, ICC publication 715). This term is typically used for heavy-lift or bulk cargo.
2. FOB – Free on Board (named port of shipment)
The seller must load the goods on board the vessel nominated by the buyer. Cost and risk are divided when the goods are actually on board of the vessel (this rule is new!). The seller must clear the goods for export. The term is applicable for maritime and inland waterway transport only but NOT for multimodal sea transport in containers (see Incoterms 2010, ICC publication 715). The buyer must instruct the seller the details of the vessel and the port where the goods are to be loaded, and there is no reference to, or provision for, the use of a carrier or forwarder. This term has been greatly misused over the last three decades ever since Incoterms 1980 explained that FCA should be used for container shipments.
3. CFR – Cost and Freight (named port of destination)
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 are loaded on the vessel (this rule is new!). Maritime transport only and Insurance for the goods is NOT included. This term is formerly known as CNF (C&F).

4. CIF – Cost, Insurance and Freight (named port of destination)

Exactly the same as CFR except that the seller must in addition procure and pay for the insurance. Maritime transport only.

EXW FCA FAS FOB CFR CIF CPT CIP DAT DAP DDP
Services Ex Works Free Carrier Free Alongside Ship Free On board Vessel Cost & Freight Cost Insurance & Freight Carriage Paid To Carriage Insurance Paid To Delivered At Terminal Delivered At Place Delivered Duty Paid
Warehouse Storage Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Warehouse Labor Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Export Packing Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Loading Charges Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Inland Freight Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Terminal Charges Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller
Forwarder’s Fees Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller
Insurance Buyer Buyer Buyer Buyer Buyer Seller Buyer Seller Seller Seller Seller
Loading on Vessel Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller
Ocean/Air Freight Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller
Arrival Charges Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller
Duty & Taxes Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller
Delivery To Destination Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller

Discover more from Bankingallinfo-World Largest Bank Information Portal

Subscribe to get the latest posts sent to your email.