Objectives. Understand:
- The responsibilities of the Exporter and Importer under Incoterms 2000.
- How Incoterms are used in International Trade transactions.
Course Summary:
Incoterms: EXW (EX Works), FOB (Free On Board) - CIF (Cost, Insurance and Freight) - DDP (Delivered Duty Paid) - CPT (Carriage paid to)...
Incoterms are a set of international rules for the interpretation of trade terms
set forth by the International Chamber of Commerce. The word Incoterm is an
abbreviation of International commercial terms and the chosen Incoterm is a term
of the contract of sale. Incoterms are not terms of the
contracts of carriage or delivery.
In international trade transactions one of the aspects to be defined is the
place of delivery of goods. This place, previously agreed between the importer
and the exporter, must be stated in the international sales contract. INCOTERMS
2000 facilitates this by clearly defining the place of delivery, who is
responsible for the
transport to the place of delivery, who assumes the risks
and the point at which risk passes from the exporter to the importer, who
customs clears the goods for import/export and many more
important obligations.
Incoterms also establish a body of international rules for the interpretation
of the most commonly used international trade terms.
Sample of the Course:
Defining the Obligations. Incoterms enable the contracting parties to set out
clearly and concisely the extent of their respective obligations, and above all,
the moment when costs and risks are transferred from the exporter to the
importer. In Incoterms 2000, the parties define the point to which the exporter
is responsible for the goods and what are the expenses relating to his
obligations which will therefore have to be included in the
price offered by the exporter. Incoterms cover the
various modes of transport of the goods, clearly defining in the international
contract of sale the respective obligations of the exporter and the importer in
each case.
INCOTERMS 2000
- EXW EX WORKS (... named place)
- FCA FREE CARRIER (... named place)
- FAS FREE ALONGSIDE SHIP (... named port of shipment)
- FOB FREE ON BOARD (... named port of shipment)
- CFR COST AND FREIGHT (... named port of destination)
- CIF COST, INSURANCE AND FREIGHT (... named port of destination)
- CPT CARRIAGE PAID TO (... named place of destination)
- CIP CARRIAGE AND INSURANCE PAID TO (... named place of destination)
- DAF DELIVERED AT FRONTIER (... named place)
- DES DELIVERED EX SHIP (... named port of destination)
- DEQ DELIVERED EX QUAY (... named port of destination)
- DDU DELIVERED DUTY UNPAID (... named place of destination)
- DDP DELIVERED DUTY PAID (... named place of destination)
Incoterms, FOB, CIF, DDP, DDU, CFR, EXW, FAS, FCA, cci, EX Works, Free, On Board, Cost, Insurance, Freight, Carriage, Delivered, Duty, Paid, International, Commercial, Terms, Master, International Business, Customs, Logistics, import, export, exporter
