8 International customs termIncoterms 2000.pptVIP

8. International customs termIncoterms 2000 8.1 Trade Term: Standardized terms used in sales contracts that describe the time, place, and manner for the transfer of goods from the seller to the buyer. Trade terms are those published by the International Chamber of Commerce. Called Incoterms, they are well-known throughout the world, and their use in international sales is encouraged by trade councils, courts, and international lawyers. First published in 1936, amended in 1953, 1967,1976,1980 and 1990. The current version is lncoterms 2000. Parties who adopt the lncoterms should make sure they express their desire clearly. A. A Note on the lncoterms The 1990 revision contains several significant modifications, reflecting changes Both in technology and in shipping practices that occurred during the 1980s. The ICC “The 1990 revision was the desire to adapt terms to the increasing use of electronic data interchange (EDI). ” The 2000 revision groups the trade terms into four groups, which are arranged according to the parties’s obligations. The “E” Group: Requires the buyer to take delivery of goods at the seller’s place of business. EXW: Exchange on Works The “F” Group: Requires the seller to delivery goods to a carrier. FCA: Free Carrier(... named place) . FAS: Free Alongside Ship (...named port of shipment) FOB: Free On Board (...named port of shipment) The “C” Group: Requires the seller to arrange and pay for carriage. CFR: Cost and Freight (... named port of shipment) . CIF: Cost Insurance and Freight (... named port of shipment) CPT: Carriage Paid To (... named place of destination) CIP: Carriage and Insurance Paid To (... named place of destination) The “D” Group: Requires the seller to bear all costs and risks of bringing the goods to the buyer’s country. DAF: Delivered at Frontier (... named place) . DES: Delivered Ex Ship(... named port of destination) DEQ: Delivered Ex Quay (... named port of destination) DDU: Delivered Dut