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INCOTERMS 2000  
Describe the responsibilities of seller and buyer in international trade. The full and authoritative definitions of each trade term is published in Incoterms 2000 Publication 560

Special International Trade Terms

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:
International Commercial Terms
to provide a set of rules to interpret the most commonly used trade terms in international trade.

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:
 

 


Site Contents for:
How to develop your export market?

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
Licensing and Join Venture

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 

 

 

 

 

1. The cost of transporting the goods from one point to the other.
2. The risk of loss if the transportation cannot take place.
3. The risk of loss or damage to goods in transit.

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
Click on individual definition for detail meaning.

EXW EX WORKS

FCA FREE CARRIER

FAS FREE ALONGSIDE SHIP

FOB FREE ON BOARD

CFR COST AND FREIGHT

CIF COST, INSURANCE AND FREIGHT

CPT CARRIAGE PAID TO

CIP CARRIAGE AND INSURANCE PAID TO

DAF DELIVERED AT FRONTIER

DES DELIVERED EX SHIP

DEQ DELIVERED EX QUAY

DDU DELIVERED DUTY UNPAID

DDP DELIVERED DUTY PAID

 

 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 
  EXW EX WORKS (... named place)
  • Ex works means the seller's only responsibility is to make the goods available at the seller's premises, for example: at the seller factory.
     
  • The seller is not responsible for loading the goods on the vehicle provided by the buyer unless otherwise agreed.
     
  • The buyer bears the full costs and risk involved in collecting the goods from there to the desired destination. Ex works represents the minimum obligation of the seller.

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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.

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FAS FREE ALONGSIDE SHIP
(... named port of shipment)

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.

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FOB FREE ON BOARD
(... 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.

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efinitions of INCOTERMS trade terms
 
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Site Contents for:
How to develop your export market?

 


Site Contents for:
Secrets of
International Trade


 

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