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INCOTERMS
2000
The first INCOTERMS - uniform rules for the interpretation of international trade terms were published in 1936, by the International Chamber of Commerce (ICC) used in buying and selling on a world wide scale. Since then, ICC has amended and modernized these rules in 1953, 1967, 1980, 1990 and Incoterms 2000
INCOTERMS 2000
stands for: This set of rules defines the precise obligations of buyer and seller to reduce the possibility of misunderstanding between the exporter and importer.
The purpose of these terms is to clarify who is responsible (seller or buyer) for: |
Page 1 How to develop your export market? Page 2 How to benefit from export merchant or agent? Page 3 About Foreign Distributor & Import Agent Page 4
Socialist Countries Page 5 Sales Procedure for Export Export Contract << This Page 6 Incoterms describe the responsibilities of seller and buyer Page 7 Definitions of INCOTERMS trade terms Page 8 About commercial disputes and arbitration Page 9 About The World Trade Center Association Page 10 Direct Export & Indirect Export Procedures |
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In other words, Incoterms 2000 aim is to set out the rights and obligations of the seller and the buyer when it comes to transporting the goods. Each term means a different division of costs, risks, and responsibilities between the seller and the buyer.
Incoterms
2000 EXW EX WORKS FCA FREE CARRIER FOB FREE ON BOARD CIF COST, INSURANCE AND FREIGHT CIP CARRIAGE AND INSURANCE PAID TO
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EXW
EX WORKS (... named place)
FCA FREE CARRIER (... named place) This FCA term has been designed to meet the requirements of multimodal transport, such as container or roll-on, roll-off traffic by trailers and ferries. FCA is based on the same name principle as FOB (free on board), except that the seller fulfills its obligations when the goods are delivered to the custody of the carrier at the named place. If no precise place can be named at the time of the contract of sale, the parties should refer to the place where the carrier should take the goods into its charge. The risk of loss or damage to the goods is transferred from seller to buyer at that time and not at the ship's rail. The term "carrier" means any person by whom or in whose name a contract of carriage by road, rail, air, sea, or a combination of modes has been made. When a seller has been furnished a bill of lading, airway bill or carrier's receipt, the seller duly fulfills its obligation by presenting such a document issued by a carrier.
FAS or "free alongside ship" requires the seller to deliver the goods alongside the ship on the quay. From that point on, the buyer bears all costs and risks of loss and damage to the goods. Unlike F.O.B., F.A.S. requires the buyer to clear the goods for export and pay the cost of loading the goods.
(... named port of shipment) Under FOB the goods are placed on board the ship by the seller at a port of shipment named in the sales agreement. The risk of loss of or damage to the goods is transferred to the buyer when the goods pass the ship's rail (i.e., off the dock and placed on the ship). The seller pays the cost of loading the goods. efinitions of INCOTERMS trade terms
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