INCOTERMS 2020 The Incoterms ® 2010 and 2020 rules provide standard solutions for the division of costs, tasks and risks between seller and buyer in relation to any sales of goods where the contract presupposes that the goods are to be transported from the seller to the buyer.
- Transfer of risks - Division of costs - Transfer of obligations GROUPS
E – minimum obligations for the seller F – seller deliver goods for main transport C – seller stands for the main transport D – maximum obligations for the seller
This first introduction includes the seven Incoterms ® 2020 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. These rules can be used in cases where a ship is used for part of the carriage.
EXW – Ex Works FCA – Free Carrier CPT – Carriage Paid To CIP – Carriage And Insurance Paid To DPU – Delivered At Place Unloaded DAP – Delivered At Place DDP – Delivered Duty Paid FCA – Free Carrier Named place
Risk Specify named point Costs Documents
The buyer is at risk when the goods have been delivered to the first carrier or terminal at agreed time and place. Both the buyer and the seller may insure their respective legs of the transportation, if they so desire.
Seller’s As Buyer’s = The Goods duties agreed duties
6 DAP – delivered at place Named place of destination
Risk Costs Documents
The buyer is at risk when the goods have been placed at his disposal at agreed place of destination ready for unloading. Both the buyer and the seller may insure their respective legs of the transportation, if they so desire.
Seller’s As Buyer’s duties agreed duties
= The Goods
7 DPU – delivered at place unloaded Named terminal at port or place of destination
The buyer is at risk when the goods have been placed at his disposal at agreed place unloaded. The seller may insure the transportation to the place of destination, if the seller so desires (further transportations by the buyer, if the buyer so desires). The seller delivers the goods: when the goods are placed at the disposal of the buyer unloaded at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.
= The Goods
8 Incoterms 2020 Sea and inland waterway transport
IN THE SECOND CLASS OF INCOTERMS ® 2020 RULES, THE POINT OF DELIVERY AND THE PLACE OF TO WHICH THE GOODS ARE CARRIED TO THE BUYER ARE BOTH PORTS.
FAS – FREE ALONGSIDE SHIP FOB – FREE ON BOARD CFR – COST AND FREIGHT CIF – COST INSURANCE AND FREIGHT
9 CIF – cost, insurance and freight Named port of destination (sea and waterway transports only)
Risk Costs Documents
The buyer is at risk when the goods have been delivered onboard the ship at the port of shipment. Insurance must be covered by the seller (in favour of the buyer) to the port of destination complying with at least Institute Cargo Clauses (C) or similar clauses (further transports by the buyer if the buyer so desires).
Seller’s As Buyer’s duties agreed duties
= The Goods
10 Incoterms 2020 – KEY CHANGES
• COMPLETE OVERHAUL OF THE INTERNAL ORDER OF THE INCOTERMS: GENERAL OBLIGATIONS, DELIVERY, TRANSFER OF RISKS, CARRIAGE, INSURANCE, TRANSPORT DOCUMENT, CLEARANCE, CHECKING, ALLOCATION OF COSTS, NOTICES • DAT CHANGED TO DPU (DELIVERED AT PLACE UNLOADED) • CHANGE OF INSURANCE IN CIP/CIF (ICC(A) IN CIP AND ICC(C) IN CIF) • SECURITY REQUIREMENT TRANSPORT (EG MANDATORY SCANNING OF CONTAINERS) • SELLER/BUYER USING OWN TRANSPORTS (FCA, DAP, DPU, DDP) • IMPROVED PRESENTATION
11 Thank You!
This is only a guidance and not a complete instruction how to use the Incoterms rules. Use an actual ICC Incoterms handbook to know more about all the terms and conditions.
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