This website uses cookies to ensure you have the best experience. Learn more

Incoterms Essay

559 words - 3 pages

INCOTERMS are a set of three-letter standard trade terms most commonly used in international contracts for the sale of goods. It is essential that you are aware of your terms of trade prior to shipment. EXW – EX WORKS (… named place of delivery) The Seller’s only responsibility is to make the goods available at the Seller’s premises. The Buyer bears full costs and risks of moving the goods from there to destination. FCA – FREE CARRIER (… named place of delivery) The Seller delivers the goods, cleared for export, to the carrier selected by the Buyer. The Seller loads the goods if the carrier pickup is at the Seller’s premises. From that point, the Buyer bears the costs and risks of moving the goods to destination. CPT – CARRIAGE PAID TO (… named place of ...view middle of the document...

“Terminal” includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The Seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination. DAP – DELIVERED AT PLACE (… named place of destination) The Seller delivers when the goods are placed at the Buyer’s disposal on the arriving means of transport ready for unloading at the names place of destination. The Seller bears all risks involved in bringing the goods to the named place. DDP – DELIVERED DUTY PAID (… named place) The Seller delivers the goods -cleared for import – to the Buyer at destination. The Seller bears all costs and risks of moving the goods to destination, including the payment of Customs duties and taxes. MARITIME-ONLY TERMS FAS – FREE ALONGSIDE SHIP (… named port of shipment) The Seller delivers the goods to the origin port. From that point, the Buyer bears all costs and risks of loss or damage. FOB– FREE ON BOARD (… named port of shipment) The Seller delivers the goods on board the ship and clears the goods for export. From that point, the Buyer bears all costs and risks of loss or damage. CFR– COST AND FREIGHT (… named port of destination) The Seller clears the goods for export and pays the costs of moving the goods to destination. The Buyer bears all risks of loss or damage. CIF – COST INSURANCE AND FREIGHT (… named port of destination) The Seller clears the goods for export and pays the costs of moving the goods to the port of destination. The Buyer bears all risks of loss or damage. The Seller, however, purchases the cargo insurance.

Other Papers Like Incoterms

Lfb 2 Essay

621 words - 3 pages , according to the proposal of November 10th, FOB Rotterdam, INCOTERMS 2000. In total 500 tons of Old Gouda cheese are offered for a total of €2.5 million. On November 15th 2015, milk prices in the EU increase dramatically. For that very reason Old Dutch Gouda informs the Canadians on November 17th it (=O.D.G.) revokes the original offer. At the same time Old Dutch Gouda offers the 500 tons once again, but now for a much higher price, i.e. €4

Mr Awewqeasf Ewrqewrqrqwrqwrqw Essay

548 words - 3 pages Trade. I attempted to work well with incoterms 2000 and 2010 as well as required specialized knowledge because I knew that they are very important with my future career. Four years in university brings me more opportunities to learn from my friends, my  teachers  about communication in work, life and how to solve the problems so well. I know that beside knowledge, foreign languages are keys to have a good job and English is one of them. I had

Multimodal Transport Operations In Practice

6508 words - 27 pages Radioisotopes SOC Ltd in Pelindaba. As the transaction is to be carried out under Incoterms ® 2010 Rules DDP Windhoek State Hospital, AEC Amersham appoints the forwarding agent, Bidvest Panalpina Logistics (BPL), who is responsible for the door to door movement of the goods. 3.3 Buyer arranges finance Windhoek State Hospital arranges payment with Windhoek Hospital through a 30 days open account facility. The Namibian Dollar (NAD) is

Theory of Rejecting Superior, New Technologies

3875 words - 16 pages harmonization has taken place: the Vienna Convention on Sale of Goods and standard form terms such as the Cartegen Incoterms govern international sale of goods, the UNCITRAL Model Law on International Commercial Arbitration governs alternative dispute resolution mechanisms in the international context, the Uniform Customs and Practice for Documentary Credits governs the payment mechanisms typically used in international trade. Further to these

Research Fuckry

1886 words - 8 pages of the policy There are 13 Incoterms set by the ICC Incoterms Ex-works—seller places goods at the disposal of the buyer at the time specified in the contract; buyer takes delivery at the premises of the seller and bears all risks and expenses from that point on. Delivery duty paid—seller agrees to deliver the goods to the buyer at the place he or she names in the country of import with all costs, including duties, paid. 11-13

Legal Aspects Of International Trade

752 words - 4 pages United Nations Commission on International Trade Law * Helps to overcome disparities in national laws governing international trade obstacles ICC International Chamber of Commerce * Paris-based industry group * Attempts to harmonize private international law * Plays a major role as an arbitration institution * Works in tandem with the U.N. * Codifying international contract terms: Incoterms Additional

Portfolio Activity

4876 words - 20 pages stakeholders, both internal and external. It’s also imperative to have senior management approval and endorsement. Task 2 You should now consider starting Portfolio Activity 4.  Element 3 – Undertake more Complex International Purchasing Key topics to be researched and analysed in this element include: • Culture • Legal • Contract • Incoterms Required Reading • Monczka, et al – Chapter 10 pp 373 • Monczka, et al – Chapter 10 pp


2203 words - 9 pages . Conductores de costos de la globalización: economías de escala. 3. Conductores competitivos: diversidad de competidores y volúmenes de importación y exportación de la industria. 4. Conductores gubernamentales: políticas de comercio favorables, buen clima regulatorio, subsidios, etc. Como tercer y última etapa es cuando se toma la acción de exportar o la diversificación tomando en cuenta: * INCOTERMS * Logística (transporte marítimo, aéreo


1429 words - 6 pages . Arguments over who should pay the freight and insurance have arisen in the past which has created the need for Incoterms. Payment methods are last in the line for managing the export transactions. Determining what method works best for all involved will help the process go as smoothly as possible. Payment methods include cash in advance, letter of credit, and open account. Cash in advance – this is when the exporter receives cash in advance

International Business Law

3048 words - 13 pages goods if notice is not given to the seller which specifies the character of the non-conformity within a reasonable time after he has discovered it. Therefore, since both Northwest and PhilOre are liable for one type of fraud committed under the Incoterms that allocate risk; According to the Shipment contract the risk of loss is transferred from seller to buyer at or before point of shipment. This means as soon as Northwest put the ore on the

Scottish Newcastle Vs The Parchim

3267 words - 14 pages a fob contract. Further, Mance considers the payment of the price, i.e. 90 days after arrival, as a relaxed regime that shall not be construed as an indication of the contract being a cif contract. Another of his argument results from his detailed analysis of the characteristics of cif, cfr and fob incoterms. If fob contracts may vary a little in their form, it doesn’t change the nature of a fob contract since fob is a “flexible instrument

Related Essays

Incoterms Essay

2430 words - 10 pages Question 1 Choice of relevant incoterms available to parties From the facts of the given case, it is apparent that the buyer, Bai Yun Incorporated, located in Beijing, China intends to iniatiate a sale of goods contract with the seller, Susie Seller located in Melbourne, Australia. Although neither party made any mention to the type of incoterm to be used, the buyer in this instance specifically requested that the terms of contract provide for

Incoterms Essay

2213 words - 9 pages Arturo Lemmen Meyer Comercio exterior INCOTERMS Los Incoterms son un conjunto de reglas internacionales, regidos por la Cámara de Comercio Internacional, que determinan el alcance de las cláusulas comerciales incluidas en el contrato de compraventa internacional. Los Incoterms también se denominan cláusulas de precio, pues cada termino permite determinar los elementos que lo componen. La selección del Incoterm influye sobre el costo del

Investments Essay

1252 words - 6 pages New INCOTERMS effective January 1, 2011 The International Chamber of Commerce (ICC ) has published revisions to its International Commercial Terms, also known as INCOTERMS®, that take effect on January 1, 2011. The revised rules, designated "INCOTERMS 2010", contain a series of changes, such as a reduction in the number of terms to 11 from 13. The DAF, DES, DEQ, and DDU designations have been eliminated, while two new terms, Delivered at

International Commercial Terms Essay

3023 words - 13 pages INTERNATIONAL COMMERCIAL TERMS 1. Overview on International Commercial Terms 1.1. Concept Incoterms are rules for interpretation of trade terms which clarify the distribution of functions, costs and risks relating to the transfer of goods from the seller to the buyer. 1.2. Evolution of Incoterms rules 1936, 1953, 1967, 1976, 1980, 1990, 2000, 2010  To reflect trade practice more precisely GV Nguyễn Thị Minh Hà 1 INTERNATIONAL