Milenium International Inc.

WORLDWIDE SUPPLY&TECHNOLOGY SOLUTIONS


INCOTERM 2000

Milenium International Inc. business principal are   based on ICC (International Chamber of Commerce) regulations:
  1. Incoterm 2000
  2. International Arbitrations
  3. Uniform Customs Practice for Documentary Credits UCP 600
For detail please refer to http://www.iccwbo.org

INCOTERMS 2000

Incoterms are ICC (International Chamber of Commerce) Standard definitions of trade terms.
Incoterms defines the exact responsibilities and liabilities of both the buyer and seller while the merchandise is in transit. Also Defines buyers and sellers responsibilities under sales contract.
Incoterms 2000 will not apply unless incorporated into the contract of sale by clearly specifying that the contract is governed by Incoterms 2000.
Critical points are Carriage Risk transfer Cost transfer

Typical Elements of Export Transportation and Responsibilities under Incoterms (2000)

1. Loading on Vehicle
2. Domestic Inland Transportation (including pier delivery)
3. Truck Unloading
4. Wharfage (if not included in ocean rate)
5. Pier handling (if not included in ocean rate)
6. Lighterage
7. Ship Loading Costs
8. Ocean transportation + Surcharges (Bunker Fuel, Currency, Congestion) 
9. Forwarding Fees
10. (A) = ship's unloading costs (including Lighterage and Wharfage charges) to the extent included in freight
10. (B) = ship's unloading costs (including Lighterage and Wharfage charges) that are not included in freight.*
11. Marine Insurance
12. War Risk Insurance
13. Consular Fees
14. Import Duties, Taxes, Fees
15. Customs Clearance
16. Foreign Inland Transportation
Ship loading and unloading costs are normally part of the ocean freight for material carried on regular scheduled vessels. Additionally, there is a heavy lift tariff schedule for individual pieces in excess of three to four tons which is expressed as a single combined rate for the loading and unloading, and normally can not be separated. Ship loading and unloading costs may also be subject to "customs of the port" which can represent an exception to normal responsibilities.
Image:Incoterms Robert Wielgorski EN.PNG


INCOTERMS 200 GROUP E – DEPARTURE – ORIGIN TERMS
Under EXW, seller minimizes his risk making goods available at his own premises.

EXW - Ex-Works Named place where shipment is available to the buyer, not loaded.
The seller will not contract for any transportation.This term can be used for any mode of transport.

Carriage
to be arranged by the buyer.   
Risk transfer from the seller to the buyer when goods are at the disposal of the buyer.
Cost transfer from the seller to the buyer when goods are at the disposal of the buyer.
Responsibilities  
Export license, 1 through 16 - Buyer

INCOTERM 2000 GROUP F – INTERNATIONAL CARRIAGE NOT PAID BY SELLER
Under F terms and under FCA unless otherwise agreed, seller arranges and pays for pre-carriage in country of export.

FCA - Free Carrier , unloaded at the sellers dock or named place where shipments is available to the carrier.
This term can be used for any mode of transport.
Carriage to be arranged by the buyer or seller on buyer’s behalf.
Risk transfer from seller to buyer - goods has been delivered to the carrier at the named place.
Cost transfer from seller to buyer - goods has been delivered to the carrier at the named place.
Responsibilities  
Export license and delivery to carrier at Seller's premises - Seller. Seller responsible only for loading the goods and not responsible for inland freight. If the named place is anywhere other than the seller's premises or FCA Named Place (International Carrier) than the seller is responsible for inland freight and loading of goods.

FAS - Free Alongside Ship, named ocean port.
Ocean shipments that are NOT containerized.
Carriage to be arranged by the buyer.  
Risk transfer from seller to buyer when goods has been placed alongside ship.
Cost transfer from seller to buyer when goods has been placed alongside ship.
Responsibilities 
Export license 1 and 7 – Seller, 7 -16 - Buyer

FOB - Free On Board vessel, named ocean port of shipment.
This term is used for ocean shipments only where it is important that the goods pass the ship's rail.
Carriage to be arranged by the buyer.
Risk transfer from seller to buyer when a goods has been pass ships rail.
Cost transfer from seller to buyer when a goods has been pass ships rail.
Responsibilities 
Export license 1 through 7 – Seller, 8 through 16 - Buyer

INCOTERM 2000 GROUP C - INTERNATIONAL CARRIAGE PAID BY SELLER

Under C terms seller arranges and pays for main carriage but without assuming risk of carriage. 

CFR - Cost and Freight, Named ocean port of destination.
This term can be used for any mode of transport.
Carriage to be arranged by the seller.
Risk transfer from seller to buyer when a goods has been pass ships rail.
Cost transfer at port of destinations, buyer paying costs as are not for seller account under contract of carriage.
Responsibilities
Export license 1 through 10 (A) – Seller, 10 (B) through 16 - Buyer.

CIF - Cost, Insurance and Freight, named ocean port of destination.
This term can be used for any mode of transport.
Carriage and insurance to be arranged by the seller.
Risk transfer from seller to buyer when a goods has been pass ships rail.
Cost transfer at port of destinations, buyer paying costs as are not for seller account under contract of carriage.
Responsibilities
Export license 1 through 10 (A) and 11 – Seller, 10 (B) and 12 through 16 - Buyer.

CPT - Carriage Paid To, named place or port of destination.
This term is used for air or ocean containerized and roll-on roll-off shipments.
Carriage to be arranged by the seller.
Risk transfer from seller to buyer when a goods has been delivered to the carrier.
Cost transfer at port of destinations, buyer paying costs as are not for seller account under contract of carriage.
Responsibilities
Export license and
passage to named point - Seller, Remaining responsibilities - Buyer.

CIP - Carriage and Insurance Paid To, named place or port of destination.
This term is used for air or ocean containerized and roll-on roll-off shipments.
Carriage to be arranged by the seller.
Risk transfer from seller to buyer when a goods has been delivered to the carrier.
Cost transfer at port of destinations, buyer paying costs as are not for seller account under contract of carriage.
Responsibilities  
Export license and
passage to point + insurance - Seller, Remaining responsibilities - Buyer.
 
INCOTERM 2000 GROUP D - ARRIVAL AT DESTINATIONS

Under D terms sellers cost/risk is maximized because he must make goods available upon arrival

DAF - Delivered At Frontier, named place of destination, by land, not unloaded.
This term is used for any mode of transportation but must be delivered by land.
Carriage to be arranged by the seller.
Risk transfer from seller to buyer when a goods has been delivered at the frontier.
Cost transfer from seller to buyer when a goods has been delivered at the frontier.
Responsibilities
Export license and delivery at frontier - Seller .
Import license and Remaining responsibilities - Buyer

DES - Delivered Ex-Ship, named port of destination, not unloaded.
This term is used for ocean shipments only.
Carriage to be arranged by the seller.
Risk transfer from seller to buyer - goods are placed at the disposal of buyer on board the ship.
Cost transfer from seller to buyer - goods are placed at the disposal of buyer on board the ship.
Responsibilities
Export license, 1-9, 11, 12 Seller.
Import license and 10, 13, through 16 - Buyer

DEQ - Delivered Ex-Quay, named port of destination, unloaded, not cleared.
This term is used for any mode of transportation.
Carriage to be arranged by the seller.
Risk transfer from seller to buyer - goods are placed at the disposal of buyer on the quay.
Cost transfer from seller to buyer - goods are placed at the disposal of buyer on the quay.
Responsibilities
Export license and 1 through 9 - Seller.
Import license and 10 through 16 - Buyer

DDU - Delivered Duty Unpaid, named place of destination, not unloaded, not cleared.
This term is used for any mode of transportation.
Carriage to be arranged by the seller.
Risk transfer from seller to buyer - goods are placed at the disposal of buyer.
Cost transfer from seller to buyer - goods are placed at the disposal of buyer.
Responsibilities
Export license, import license and 1 through 12, 16 -Seller.
13 through 15 - Buyer
For DDU and DDP, the precise demarcation of responsibility is dependent upon location of named placed in country of importation.

DDP - Delivered Duty Paid, named place of destination, not unloaded, cleared.
This term is used for any mode of transportation.
Carriage to be arranged by the seller.
Risk transfer from seller to buyer - goods are placed at the disposal of buyer.
Cost transfer from seller to buyer - goods are placed at the disposal of buyer.
Responsibilities
Export license, import license and 1 through 16 - Seller
For DDU and DDP, the precise demarcation of responsibility is dependent upon location of named placed in country of importation.

 


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