Chapter 2-Incoterms_2000.ppt

Chapter 2Incoterms - International Commercial Terms ICC 2000 Why Incoterms Incoterms define risk, cost and responsibility for both the seller and the buyer during the transportation of the cargo from the exporter to the importer Incoterms are universal and can be recognised and understood internationally. Named port or place There are 13 Incoterms and they range from the least amount of risk, cost and responsibility for the seller, to the most. In keeping with this an Incoterm must always be followed by a named port or place. This must be quoted on the quotation, defining the port or place of receipt and or final destination. 13 Incoterms INCOTERMS 2000（International Rules for the Interpretation of Trade Terms)《2000年国际贸易术语解释通则》 1.EXW Ex Works (……named place) 2.FAS Free Alongside Ship(……named port of shipment) 3.FOB Free On Board(……named port of shipment) 4.CIF Cost Insurance and Freight(…named port of destination) 5.CFR Cost and Freight(……named port of destination) 6.FCA Free Carrier （……named place） 7.CPT Carriage Paid to (……named place of destination) 8.CIP Carriage and Insurance Paid to(…named place of destination) 9.DES Delivered Ex Ship (……named port of destination) 10.DEQ Delivered Ex Quay(…….named port of destination) 11.DAF Delivered At Frontier(…….named place) 12.DDP Delivered Duty Paid(…….named place of destination) 13.DDU Delivered Duty Unpaid(……named place of destination) In relation to transportation Only certain Incoterms should be used when dispatching goods: By sea: FOB, FAS, CFR, CIF, DES, DEQ Multimodal transport: EXW, FCA, CPT, CIP, DDU DDP Overland: DAF Fundamental obligations for both the seller and the buyer: The seller must: Supply the correct quantity, quality and value of goods in accordance to the buyer’s order. Deliver the goods on or before the dispatch date or within an agreed time period. Pack and label the goods to ensure their safe delivery. Provide the buyer with the necessary docu