Russian Traders

Incoterms 2010

 

 

Incoterms 2010 – these are the rules delimiting the obligations between the parties to the export transaction, the universally recognized international law firms, government agencies and traders.

International trade terms Incoterms 2010 are the conditions of the contract of sale that govern:

  • distribution of obligations between the seller and the buyer, as well as costs vsyazannyh delivery, loading and insurance of the goods, in other words, to determine at what point the seller is responsible and shall bear the costs the seller, and from what moment, the buyer;
  • determining the actual transfer of the goods by the seller to the buyer or his representative (eg a transport company), thus performing the first or default of its obligations under the terms of delivery, that is, the date and place of delivery.
  • the moment of transition from the seller to the buyer the risk of damage, loss or accidental loss of the goods;

In Incoterms 2010, there are 11 terms, which are divided into 2 groups according to the type of transport:

  1. The rules for any type (s) of transport;
  2. Rules for sea and inland waterway transport.

The first group includes terms that may be used regardless of mode of transport and the number of transport modes. The second group of terms, where the departure point and the place of delivery is the port.

Тermin Incoterms is an abbreviation of 3 letters where one letter indicates the transition point of the commitments from the seller to the buyer:

  • E (Departure) — on departure;
  • F (Main Carriage Unpaid) — the terminal sending the main carriage;
  • C (Main Carriage Paid) — in the main arrivals terminal transport;
  • D (Arrival) — the buyer.

Terms of delivery Incoterms 2010 are not an international treaty, but if the contract has a reference to the terms of delivery Incoterms 2010, when foreign economic disputes state bodies are obliged to take account of its provisions. In Russia, the basic terms of delivery Incoterms 2010 are advisory in nature. Valid are only the provisions of the contract, with a reference to those rules. If the contract has a reference to the Incoterms delivery basis, but some of the items they are contrary to the contract, it will take into account these points.

INCOTERMS2010

In Incoterms 2010 can be divided into four groups of rules of delivery of the goods. The basis of this classification is based on two principles: the definition of the duties of the buyer and the seller in relation to the carriage of goods to be delivered. The Incoterms 2010 rules table contains the transcript of the terms: 

Term
category E
(Shipment)

EXW

all modes of transport

EX Works ( ... named place)
The seller must: deliver the goods. The buyer must carry out export, import customs clearance and deliver the goods. Risks are transferred at the time of transfer of the goods to the seller's warehouse.

terms
category F
(main
shipping
is not paid
the seller)

FCA

all modes of transport

Free Carrier (...named place)
The seller is obliged to: carry out export customs clearance and ship the goods to a carrier appointed by the buyer. The buyer must deliver the goods and perform import customs clearance. The risk shall pass upon delivery to the carrier at Seller stock.

FAS

marine and inland water transport

Free Alongside Ship (... named port of shipment)
The seller is obliged to: carry out export customs clearance and place the goods in the port of shipment alongside the vessel nominated by the buyer. The buyer must deliver the goods at the port of discharge, as well as perform import customs clearance. The risk shall pass to the port at the time of placing the goods alongside the vessel.

FOB

marine and inland water transport

Free On Board (... named port of shipment)
The seller is obliged to: carry out export customs clearance and place the goods at the port of shipment on board the vessel nominated by the buyer. The buyer must deliver the goods at the port of discharge, as well as perform import customs clearance. The risk shall pass to the port since the full load on board.

terms
category C
(main
shipping
paid
the seller)

CFR

marine and inland water transport

Cost and Freight (... named port of destination)
The seller is obliged to: carry out export customs clearance, the goods on board the vessel and transported to the port of discharge. The buyer must take the goods to the port of discharge, as well as perform import customs clearance. The risk shall pass to port of shipment from the moment of the full load on board.

CIF

marine and inland water transport

Cost, Insurance and Freight (... named port of destination)
The seller is obliged to: carry out export customs clearance, to insure the goods on board the vessel and transported to the port of discharge. The buyer must take the goods to the port of discharge, as well as perform import customs clearance. The risk shall pass to port of shipment from the moment of the full load on board.

CIP

all modes of transport

Carriage and Insurance Paid Тo (... named place of destination)
The seller is obliged to: carry out export customs clearance, insure and deliver the goods at the agreed destination. The buyer must accept the goods and perform import customs clearance. The risk shall pass upon delivery to the carrier at Seller stock.

CPT

all modes of transport

Carriage Paid To (... named place of destination)
The seller is obliged to: carry out export customs clearance and deliver the goods at the agreed destination. The buyer must accept the goods and perform import customs clearance. The risk shall pass upon delivery to the carrier at Seller stock.

terms
category B
(delivery)

DAT

all modes of transport

Delivered At Terminal (... named terminal of destination)
The seller is obliged to: carry out export customs clearance and deliver the goods to the terminal. The buyer must accept the goods and perform import customs clearance. Risk shall pass to the terminal.

DAP

all modes of transport

Delivered At Piont (... named point of destination)
The seller is obliged to: carry out export customs clearance and deliver the goods to the agreed destination. The buyer must accept the goods and perform import customs clearance. The risk shall pass to the destination.

DDP

all modes of transport

Delivered Duty Paid (... named place of destination)
The seller is obliged to: carry out export customs clearance, to deliver the goods to the agreed destination and perform import customs clearance with payment of fees. The buyer must accept the goods. The risk shall pass to the place of destination.