Translated from Russian to English - www.onlinedoctranslator.com
INCOTERMS®
\INCOTERMS®INTERNATIONAL
COMMERCIAL TERMS INTERNATIONAL TRADE
TERMS
RulesIncoterms\IncotermsThisinternationallyrecognized standards,usedworldwide
in international and domestic contracts for the sale of
goods.
•RulesIncoterms\Incotermsrecognized by the United Nations Commission
on International Trade Law (UNCITRAL) as the global standard for
interpreting the most commonly used terms in the field of foreign trade.
•RulesIncoterms2010 (ICC Publication No. 715) are trade usage
(custombusiness turnover), adopted in the Russian Federation, as evidenced by
the Resolution of the Board of the Chamber of Commerce and Industry of the
Russian Federation No. 54-5 dated 06/28/12.
Basic principles regulated in termsIncoterms:
•the distribution between the seller and the buyer of transport
costs for the delivery of goods, that is, the determination of what
costs and for how long the seller bears, and which, starting from
what moment, the buyer.
•the moment of transfer from the seller to the buyer of the risks
of damage, loss or accidental destruction of the cargo.
•the date of delivery of the goods, that is, the determination of
the moment the seller actually transfers the goods to the disposal
of the buyer or his representative - for example, a transport
organization - and, therefore, the fulfillment or non-fulfillment
by the first of its obligations in terms of delivery.
Content
Each defined term is a three-letter abbreviation, the first
letter indicates the point of transition of obligations from the
seller to the buyer:
•E - at the place of departure (English departure),
•F- at the terminals of departure of the main transportation,
the main transportation is not paid (English main carriage
unpaid),
•C— at the terminals of arrival of the main transportation,
the main transportation is paid (English main carriage
paid),
•D- at the buyer, full delivery (English arrival).
terms,applicable toany mode of transport of the main
transportation.
1)EXW (English ex
works,ex-warehouse,ex
works): the goods are
taken by the buyer
from the seller's
warehouse specified in
the contract, payment
of export duties is
charged to the buyer.
2)FCA(English free
carrier,free carrier): the
goods are delivered to
the main carrier of the
customer to the
departure terminal
specified in the contract,
the export duties are paid
by the seller.
3)CPT(English carriage paid
to…): the goods are delivered
to the main carrier of the
customer, the seller pays the
main transportation to the
arrival terminal specified in
the contract, the buyer bears
the insurance costs,
importcustoms clearanceand
delivery from the terminal of
arrival of the main carrier is
carried out by the buyer.
4)CIP(English
carriage and
insurance paid
to…): same as
CPT, but the main
carriage is insured
by the seller.
5)DAT(English
delivered at terminal):
delivery to the import
customs terminal
specified in the contract
is paid, that is, export
payments and the main
transportation, including
insurance, are paid by
the seller, customs
clearance for import is
carried out by the buyer.
6)DAP(English
delivered at point):
delivery to the
destination specified
in the contract,
import duties and
local taxes are paid
by the buyer.
7)DDP(English
delivered duty paid):
the goods are
delivered to the
customer at the
destination specified
in the contract,
cleared of all duties
and risks.
Tterms applicable exclusively to maritime transport and transport
of territorial waters:
1)FOB(free on
board): the goods
are shipped to the
ship of the buyer,
the transshipment
is paid by the
seller.
2)FAS(free side by side
ship): the goods are
delivered to the buyer's
ship, the port of loading
is indicated in the
contract, the buyer pays
for transshipment and
loading.
3)CFR(cost and
freight): the goods are
delivered to the
buyer's destination
port specified in the
contract, the buyer
pays for the insurance
of the main
transportation,
unloading and
transshipment.
4)CIF(cost,Insura
nce and Freight):
same as CFR, but
seller insures the
main carriage.
Benefits of INCOTERMS:
1) an unambiguous interpretation of the content of INCOTERMS in courts, primarily
arbitration courts, in almost all countries.
2) the terms allow avoiding discrepancies in the interpretation of the terms of purchase
and sale transactions.
3) from January 1, 2011, the latest edition of INCOTERMS 2010 came into force,
reflecting the changes that have taken place in international trade since 2000. Among
these changes is the increased focus on transport security, which became especially
relevant after the events of September 11, 2001, as well as the widespread use of
electronic means in the conclusion of commercial transactions.
4) terms allow you to determine how the obligations of the parties for transportation and
insurance, as well as for the implementation of customs formalities when exporting and
importing goods are distributed.
5)eIf, for any reason, none of the 11 delivery bases is suitable, the parties to the contract
have the right, by mutual agreement, to change the content of the basic delivery
conditions referred to in the contract. The content of these changes should be specified
in detail, as they can significantly affect the price of the goods.
6) If the parties to the contract decide to use any commercial term that is not included in
the INCOTERMS, then the contract must describe in detail all the conditions that it
implies.
THANK YOU
FOR YOUR
ATTENTION!!!