international commercial term 2000 ( incoterms 2000)

(INCOTERMS)

ByByMuhammad Hamayuon BashirMuhammad Hamayuon Bashir

[email protected]@gmail.com

* International Chamber of Commerce* International Chamber of Commerce

International Commercial Terms

ICCICC** Official Rules for Interpretation of Trade Official Rules for Interpretation of Trade TermsTerms

Background to the presentation Background to the presentation

The topic of Inco Terms is complicated yet interesting.The topic of Inco Terms is complicated yet interesting.

Inco Terms are used in the international trade.Inco Terms are used in the international trade.

Inco Terms are official rules of ICCInco Terms are official rules of ICC

To understand Inco Terms it is essential to have a fair To understand Inco Terms it is essential to have a fair idea of international trade.idea of international trade.

Activity to move a cargo from one country to Activity to move a cargo from one country to other.other.

Inland Transportation, Loading & Unloading, Overseas Inland Transportation, Loading & Unloading, Overseas transportation, Storage, documentation, Payment of goods, transportation, Storage, documentation, Payment of goods, Clearance, Risk coverage, Handing over taking over of cargo.Clearance, Risk coverage, Handing over taking over of cargo.

Each of the above activity is an independent one and is Each of the above activity is an independent one and is performed by separate organization who has special manpower performed by separate organization who has special manpower and equipment to cater the requirement.and equipment to cater the requirement.

The involvement of various organizations at different level The involvement of various organizations at different level demand for determination of the following:demand for determination of the following:

What will be the point of delivery?What will be the point of delivery?

Who will pay the cost at different stages?Who will pay the cost at different stages?

How the risk element shall be determined?How the risk element shall be determined?

Purpose of IncotermsPurpose of Incoterms

Rules for the interpretation of trade terms in foreign trade

Reduce misunderstanding, disputes & litigation.

ScopeScope

Rights and obligations of the parties to the contract of sale with respect to the delivery of “tangible” goods sold

and

NOT including “intangibles” such as computer software etc.

MisconceptionsMisconceptions Incoterms apply to contract of carriage rather Incoterms apply to contract of carriage rather

than to the contract of sale.than to the contract of sale.

Incoterms assumed to provide for all the duties Incoterms assumed to provide for all the duties which parties may wish to include in a contract of which parties may wish to include in a contract of sale.sale.

Structure of IncotermsStructure of Incoterms

MAIN MAIN CARRIAGE CARRIAGE

UNPAIDUNPAID

FCAFCA

FASFAS

FOBFOB

PART EPART E PART FPART F PART CPART C PART DPART D

ARRIVALARRIVAL

DAFDAF

DESDES

DEQDEQ

DDUDDU

DDPDDP

MAIN MAIN CARRIAGE CARRIAGE

PAIDPAID

CFRCFR

CIFCIF

CPTCPT

CIPCIP

DEPARTUREDEPARTURE

EXWEXWContinued

Clause A1Clause A1

Structure of IncotermsStructure of Incoterms

Clause A2 Clause A2

Clause A3 Clause A3

Clause A4 Clause A4

Clause A5 Clause A5

Clause A6 Clause A6

Clause A7 Clause A7

Clause A8Clause A8

Clause A9Clause A9

Clause A10Clause A10

Provision of goodsProvision of goods

Licence, authorization & formalitiesLicence, authorization & formalities

Contract of carriage and insuranceContract of carriage and insurance

DeliveryDelivery

Transfer of risksTransfer of risks

Division of costsDivision of costs

Notice to the buyerNotice to the buyer

Proof of deliveryProof of delivery

Checking – packing - markingChecking – packing - marking

Other obligationsOther obligations

SELLER

BUYER

EXWEXW

Load Load the the

Goods Goods on on

the the

trucktruck

Load Load the the

Goods Goods on on

the the

trucktruck

ExpExp

Lice-Lice-nce nce

Auth Auth from from Govt. Govt.

of Exp of Exp Cntry Cntry

ExpExp

Lice-Lice-nce nce



Ocean Ocean

/ Air / Air FreightFreight

Cont. Cont.

of of CarriageCarriage

Ocean Ocean


Cont. Cont.


Marine Marine Insrnc Insrnc

of of

goodsgoods


of of

goodsgoods

Port Port

chrgs chrgs upon upon

arrivalarrival

of of

shpmntshpmnt

Port Port


arrivalarrival

of of

shpmntshpmntCheck Check

Export Export Pack Pack

MarkMark

Check Check


MarkMark

CstmCstms s

ClearaClearance nce

CstmCstms s

ClearaClearance nce

Load Load on on the the

VesseVessell


VesseVessell

Duties Duties Taxes Taxes & &

ImportImport

Custms Custms Clranc Clranc


ImportImport


SellerSeller

Fab Fab

the the

GoodsGoods

SellerSeller

Fab Fab

the the

GoodsGoodsDlvryDlvry

to to the the

plant plant sitesite

DlvryDlvry

to to the the


Ware Ware househouse

StoragStorage & e &

LaborLabor


StoragStorage & e &

LaborLabor

ForwarForwarder der

FeeFee

ForwarForwarder der

FeeFee

TerminaTerminal l

ChargesCharges

TerminaTerminal l

ChargesCharges

Inland Inland FreightFreightInland Inland FreightFreight

Seller Warehouse and Workshop

EX WORKSEX WORKSEXWEXW

Seller delivers when he Seller delivers when he places the goods at the disposal places the goods at the disposal of the buyerof the buyer at the seller’s premises or another named at the seller’s premises or another named place (i.e. works, factory, warehouse, etc.) not cleared place (i.e. works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle.for export and not loaded on any collecting vehicle.

Buyer has to bear all costs and risks.Buyer has to bear all costs and risks.

Min obligation for the seller.Min obligation for the seller.

FCA FCA

SELLER’S WAREHOUSE

Load Load the the

Goods Goods on on

the the

trucktruck

Load Load the the

Goods Goods on on

the the

trucktruck

ExpExp

Lice-Lice-nce nce



ExpExp

Lice-Lice-nce nce



Ocean Ocean


Cont. Cont.


Ocean Ocean


Cont. Cont.



of of

goodsgoods


of of

goodsgoods

Port Port


arrivalarrival

of of

shpmntshpmnt

Port Port


arrivalarrival

of of



MarkMark

Check Check


MarkMark

CstmCstms s

ClearaClearance nce

CstmCstms s

ClearaClearance nce


VesseVessell


VesseVessell


ImportImport



ImportImport


SellerSeller

Fab Fab

the the

GoodsGoods

SellerSeller

Fab Fab

the the


to to the the


DlvryDlvry

to to the the



StoragStorage & e &

LaborLabor


StoragStorage & e &

LaborLabor

ForwarForwarder der

FeeFee

ForwarForwarder der

FeeFee

TerminaTerminal l

ChargesCharges

TerminaTerminal l

ChargesCharges


FREE CARRIERFREE CARRIERFCAFCA

Carrier means any person who undertake to perform a Carrier means any person who undertake to perform a contract of carriage and include a nominee by the buyer.contract of carriage and include a nominee by the buyer.

Seller Seller delivers the goods, cleared for export, to the delivers the goods, cleared for export, to the carriercarrier nominated by the buyer at the name place. nominated by the buyer at the name place.

FASFAS

CUSTOMS AREA OF SELLER’S PORT

Load Load the the

Goods Goods on on

the the

trucktruck

Load Load the the

Goods Goods on on

the the

trucktruck

ExpExp

Lice-Lice-nce nce



ExpExp

Lice-Lice-nce nce



Ocean Ocean


Cont. Cont.


Ocean Ocean


Cont. Cont.



of of

goodsgoods


of of

goodsgoods

Port Port


arrivalarrival

of of

shpmntshpmnt

Port Port


arrivalarrival

of of



MarkMark

Check Check


MarkMark

CstmCstms s

ClearaClearance nce

CstmCstms s

ClearaClearance nce


VesseVessell


VesseVessell


ImportImport



ImportImport


SellerSeller

Fab Fab

the the

GoodsGoods

SellerSeller

Fab Fab

the the


to to the the


DlvryDlvry

to to the the



StoragStorage & e &

LaborLabor


StoragStorage & e &

LaborLabor

ForwarForwarder der

FeeFee

ForwarForwarder der

FeeFee

TerminaTerminal l

ChargesCharges

TerminaTerminal l

ChargesCharges


FREE ALONGSIDE SHIPFREE ALONGSIDE SHIPFASFAS

Seller delivers when the Seller delivers when the goods are placed goods are placed alongside the vesselalongside the vessel at the name port of shipment. at the name port of shipment.

FAS term requires the seller to clear the goods for FAS term requires the seller to clear the goods for export.export.

FOFOBB

LOADING AREA OF THE SELLER’S PORT

Load Load the the

Goods Goods on on

the the

trucktruck

Load Load the the

Goods Goods on on

the the

trucktruck

ExpExp

Lice-Lice-nce nce



ExpExp

Lice-Lice-nce nce



Ocean Ocean


Cont. Cont.


Ocean Ocean


Cont. Cont.



of of

goodsgoods


of of

goodsgoods

Port Port


arrivalarrival

of of

shpmntshpmnt

Port Port


arrivalarrival

of of



MarkMark

Check Check


MarkMark

CstmCstms s

ClearaClearance nce

CstmCstms s

ClearaClearance nce


VesseVessell


VesseVessell


ImportImport



ImportImport


SellerSeller

Fab Fab

the the

GoodsGoods

SellerSeller

Fab Fab

the the


to to the the


DlvryDlvry

to to the the



StoragStorage & e &

LaborLabor


StoragStorage & e &

LaborLabor

ForwarForwarder der

FeeFee

ForwarForwarder der

FeeFee

TerminaTerminal l

ChargesCharges

TerminaTerminal l

ChargesCharges


FREE ON BOARDFREE ON BOARDFOBFOB

The buyer has to bear all costs and risks of loss of The buyer has to bear all costs and risks of loss of or damage to the goods from that point.or damage to the goods from that point.

The FOB term requires the seller to clear the The FOB term requires the seller to clear the goods for export.goods for export.

Seller delivers when the goods pass the ship’s rail Seller delivers when the goods pass the ship’s rail at the named port of shipment.at the named port of shipment.

This term can be used only for sea or inland This term can be used only for sea or inland waterway transport.waterway transport.

CFRCFR

BUYER’S PORT

Load Load the the

Goods Goods on on

the the

trucktruck

Load Load the the

Goods Goods on on

the the

trucktruck

ExpExp

Lice-Lice-nce nce



ExpExp

Lice-Lice-nce nce



Ocean Ocean


Cont. Cont.


Ocean Ocean


Cont. Cont.



of of

goodsgoods


of of

goodsgoods

Port Port


arrivalarrival

of of

shpmntshpmnt

Port Port


arrivalarrival

of of



MarkMark

Check Check


MarkMark

CstmCstms s

ClearaClearance nce

CstmCstms s

ClearaClearance nce


VesseVessell


VesseVessell


ImportImport



ImportImport


SellerSeller

Fab Fab

the the

GoodsGoods

SellerSeller

Fab Fab

the the


to to the the


DlvryDlvry

to to the the



StoragStorage & e &

LaborLabor


StoragStorage & e &

LaborLabor

ForwarForwarder der

FeeFee

ForwarForwarder der

FeeFee

TerminaTerminal l

ChargesCharges

TerminaTerminal l

ChargesCharges


COST AND FREIGHTCOST AND FREIGHT(….named port of destination)(….named port of destination)

COST AND FREIGHTCOST AND FREIGHT(….named port of destination)(….named port of destination)

CFRCFR

Seller to pay the costs and freight for named port Seller to pay the costs and freight for named port of destinationof destination

Seller delivers when the Seller delivers when the goods pass the ship’s railgoods pass the ship’s rail in the port of shipment.in the port of shipment.

the risk of loss of or damage to the goods, as well as any additional the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are costs due to events occurring after the time of delivery, are transferred from the seller to the buyer.transferred from the seller to the buyer.

CIFCIF

BUYER’S PORT

Load Load the the

Goods Goods on on

the the

trucktruck

Load Load the the

Goods Goods on on

the the

trucktruck

ExpExp

Lice-Lice-nce nce



ExpExp

Lice-Lice-nce nce



Ocean Ocean


Cont. Cont.


Ocean Ocean


Cont. Cont.


Port Port chrgs chrgs

on on arrival arrival

at at buyer buyer portport

Port Port chrgs chrgs

on on arrival arrival

at at buyer buyer portport


of of goods goods


of of goods goods

Check Check


MarkMark

Check Check


MarkMark

CstmCstms s

ClearaClearance nce

CstmCstms s

ClearaClearance nce


VesseVessell


VesseVessell


ImportImport



ImportImport


SellerSeller

Fab Fab

the the

GoodsGoods

SellerSeller

Fab Fab

the the


to to the the


DlvryDlvry

to to the the



StoragStorage & e &

LaborLabor


StoragStorage & e &

LaborLabor

ForwarForwarder der

FeeFee

ForwarForwarder der

FeeFee

TerminaTerminal l

ChargesCharges

TerminaTerminal l

ChargesCharges


COST INSURANCE & FREIGHTCOST INSURANCE & FREIGHT(….named port of destination)(….named port of destination)CIFCIF

Seller to clear the goods for export.Seller to clear the goods for export.

Seller to get insurance on min. cover. for greater Seller to get insurance on min. cover. for greater cover, buyer to get his extra arrangement.cover, buyer to get his extra arrangement.

Seller to pay the costs, freight and marine Seller to pay the costs, freight and marine insurance during the carriage.insurance during the carriage.

CPTCPT

UNLOADING AREA OF THE BUYER’S PORT

Load Load the the

Goods Goods on on

the the

trucktruck

Load Load the the

Goods Goods on on

the the

trucktruck

ExpExp

Lice-Lice-nce nce



ExpExp

Lice-Lice-nce nce



Ocean Ocean


Cont. Cont.


Ocean Ocean


Cont. Cont.



of of

goodsgoods


of of

goodsgoods

Port Port


arrivalarrival

of of

shpmntshpmnt

Port Port


arrivalarrival

of of



MarkMark

Check Check


MarkMark

CstmCstms s

ClearaClearance nce

CstmCstms s

ClearaClearance nce


VesseVessell


VesseVessell


ImportImport



ImportImport


SellerSeller

Fab Fab

the the

GoodsGoods

SellerSeller

Fab Fab

the the


to to the the


DlvryDlvry

to to the the



StoragStorage & e &

LaborLabor


StoragStorage & e &

LaborLabor

ForwarForwarder der

FeeFee

ForwarForwarder der

FeeFee

TerminaTerminal l

ChargesCharges

TerminaTerminal l

ChargesCharges


CARRIAGE PAID TOCARRIAGE PAID TO(…named port of destination)(…named port of destination)

CARRIAGE PAID TOCARRIAGE PAID TO(…named port of destination)(…named port of destination)

CPCPTT

The seller The seller deliver the goods to the carrierdeliver the goods to the carrier nominated by himnominated by him

The seller must in addition pay the cost of carriage The seller must in addition pay the cost of carriage necessary to bring the goods to the name destination.necessary to bring the goods to the name destination.

Buyer bears all risks and any other costs occurring Buyer bears all risks and any other costs occurring after the goods have been so delivered.after the goods have been so delivered.

CIPCIP


Load Load the the

Goods Goods on on

the the

trucktruck

Load Load the the

Goods Goods on on

the the

trucktruck

ExpExp

Lice-Lice-nce nce



ExpExp

Lice-Lice-nce nce



Ocean Ocean


Cont. Cont.


Ocean Ocean


Cont. Cont.


Dlvry Dlvry to to

Plant Plant SiteSite

Dlvry Dlvry to to

Plant Plant SiteSite

Port Port


arrivalarrival

of of

shpmntshpmnt

Port Port


arrivalarrival

of of



MarkMark

Check Check


MarkMark

CstmCstms s

ClearaClearance nce

CstmCstms s

ClearaClearance nce


VesseVessell


VesseVessell


ImportImport



ImportImport


SellerSeller

Fab Fab

the the

GoodsGoods

SellerSeller

Fab Fab

the the

GoodsGoodsMarine Marine Insrnc Insrnc

of of goodsgoods


of of goodsgoods


StoragStorage & e &

LaborLabor


StoragStorage & e &

LaborLabor

ForwarForwarder der

FeeFee

ForwarForwarder der

FeeFee

TerminaTerminal l

ChargesCharges

TerminaTerminal l

ChargesCharges


CARRIAGE AND INSURANCE PAID TOCARRIAGE AND INSURANCE PAID TO(….named port of destination)(….named port of destination)CIPCIP

The seller also has to procure insurance.The seller also has to procure insurance.

Seller must in addition pay the cost of carriage necessary to Seller must in addition pay the cost of carriage necessary to bring the goods to the named destination.bring the goods to the named destination.

Seller Seller delivers the goods to the carrierdelivers the goods to the carrier nominated by nominated by him.him.

DAFDAF

FRONTIER OF THE COUNTRY OF SELLER

Load Load the the

Goods Goods on on

the the

trucktruck

Load Load the the

Goods Goods on on

the the

trucktruck

ExpExp

Lice-Lice-nce nce



ExpExp

Lice-Lice-nce nce



Ocean Ocean


Cont. Cont.


Ocean Ocean


Cont. Cont.



of of

goodsgoods


of of

goodsgoods

Port Port


arrivalarrival

of of

shpmntshpmnt

Port Port


arrivalarrival

of of



MarkMark

Check Check


MarkMark

CstmCstms s

ClearaClearance nce

CstmCstms s

ClearaClearance nce


VesseVessell


VesseVessell


ImportImport



ImportImport


SellerSeller

Fab Fab

the the

GoodsGoods

SellerSeller

Fab Fab

the the


to to the the


DlvryDlvry

to to the the



StoragStorage & e &

LaborLabor


StoragStorage & e &

LaborLabor

ForwarForwarder der

FeeFee

ForwarForwarder der

FeeFee

TerminaTerminal l

ChargesCharges

TerminaTerminal l

ChargesCharges


DAFDAF

FRONTIER OF THE COUNTRY OF BUYER

Load Load the the

Goods Goods on on

the the

trucktruck

Load Load the the

Goods Goods on on

the the

trucktruck

ExpExp

Lice-Lice-nce nce



ExpExp

Lice-Lice-nce nce



Ocean Ocean


Cont. Cont.


Ocean Ocean


Cont. Cont.



of of

goodsgoods


of of

goodsgoods

Port Port


arrivalarrival

of of

shpmntshpmnt

Port Port


arrivalarrival

of of



MarkMark

Check Check


MarkMark

CstmCstms s

ClearaClearance nce

CstmCstms s

ClearaClearance nce


VesseVessell


VesseVessell


ImportImport



ImportImport


SellerSeller

Fab Fab

the the

GoodsGoods

SellerSeller

Fab Fab

the the


to to the the


DlvryDlvry

to to the the



StoragStorage & e &

LaborLabor


StoragStorage & e &

LaborLabor

ForwarForwarder der

FeeFee

ForwarForwarder der

FeeFee

TerminaTerminal l

ChargesCharges

TerminaTerminal l

ChargesCharges


DELIVERED AT DELIVERED AT FRONTIERFRONTIER

(….named places)(….named places)

DADAFF

Seller delivers the goods Seller delivers the goods when the goods are placed at when the goods are placed at the disposal of the buyer on the arriving means of the disposal of the buyer on the arriving means of transporttransport, not unloaded, not cleared for import at the , not unloaded, not cleared for import at the named point and place at the frontier, but before the named point and place at the frontier, but before the customs border of the adjoining country.customs border of the adjoining country.

DEDESS


Load Load the the

Goods Goods on on

the the

trucktruck

Load Load the the

Goods Goods on on

the the

trucktruck

ExpExp

Lice-Lice-nce nce



ExpExp

Lice-Lice-nce nce



Ocean Ocean


Cont. Cont.


Ocean Ocean


Cont. Cont.



of of

goodsgoods


of of

goodsgoods

Port Port


arrivalarrival

of of

shpmntshpmnt

Port Port


arrivalarrival

of of



MarkMark

Check Check


MarkMark

CstmCstms s

ClearaClearance nce

CstmCstms s

ClearaClearance nce


VesseVessell


VesseVessell


ImportImport



ImportImport


SellerSeller

Fab Fab

the the

GoodsGoods

SellerSeller

Fab Fab

the the


to to the the


DlvryDlvry

to to the the



StoragStorage & e &

LaborLabor


StoragStorage & e &

LaborLabor

ForwarForwarder der

FeeFee

ForwarForwarder der

FeeFee

TerminaTerminal l

ChargesCharges

TerminaTerminal l

ChargesCharges


DELIVERED EX SHIPDELIVERED EX SHIP(….named port of destination)(….named port of destination)

DEDESS

Seller delivers when the Seller delivers when the goods are placed at the goods are placed at the disposal of the buyer on board the shipdisposal of the buyer on board the ship, not cleared , not cleared for import at the named port of destination. for import at the named port of destination.

The seller has to bear all the costs and risks The seller has to bear all the costs and risks involved in bringing the goods to the named port involved in bringing the goods to the named port of destination before discharging.of destination before discharging.

DEQDEQ


Load Load the the

Goods Goods on on

the the

trucktruck

Load Load the the

Goods Goods on on

the the

trucktruck

ExpExp

Lice-Lice-nce nce



ExpExp

Lice-Lice-nce nce



Ocean Ocean


Cont. Cont.


Ocean Ocean


Cont. Cont.



of of

goodsgoods


of of

goodsgoods

Port Port


arrivalarrival

of of

shpmntshpmnt

Port Port


arrivalarrival

of of



MarkMark

Check Check


MarkMark

CstmCstms s

ClearaClearance nce

CstmCstms s

ClearaClearance nce


VesseVessell


VesseVessell


ImportImport



ImportImport


SellerSeller

Fab Fab

the the

GoodsGoods

SellerSeller

Fab Fab

the the

GoodsGoods

DlvryDlvry

to to the the


DlvryDlvry

to to the the



StoragStorage & e &

LaborLabor


StoragStorage & e &

LaborLabor

ForwarForwarder der

FeeFee

ForwarForwarder der

FeeFee

TerminaTerminal l

ChargesCharges

TerminaTerminal l

ChargesCharges


DELIVERED EX QUAYDELIVERED EX QUAY(….named port of destination)(….named port of destination)

DEDEQQ

Seller delivers Seller delivers when the goods are placed at the when the goods are placed at the disposal of the buyer not cleared for import on the disposal of the buyer not cleared for import on the quay (wharf)quay (wharf) at the named port of destination. at the named port of destination.

The seller has to bear costs and risks involved in The seller has to bear costs and risks involved in bringing the goods to the named port of bringing the goods to the named port of destination and discharging the goods on the destination and discharging the goods on the quay (wharf). quay (wharf).

The DEQ term requires the buyer to clear the The DEQ term requires the buyer to clear the goods for import and to pay for all formalities, goods for import and to pay for all formalities, duties, taxes and other charges upon import.duties, taxes and other charges upon import.

Customs Clearance Area for Storage, Appraisement & Release to the importer

WEST WHARF

DDDD

UU


Load Load the the

Goods Goods on on

the the

trucktruck

Load Load the the

Goods Goods on on

the the

trucktruck

ExpExp

Lice-Lice-nce nce



ExpExp

Lice-Lice-nce nce



Ocean Ocean


Cont. Cont.


Ocean Ocean


Cont. Cont.



of of

goodsgoods


of of

goodsgoods

Port Port


arrivalarrival

of of

shpmntshpmnt

Port Port


arrivalarrival

of of



MarkMark

Check Check


MarkMark

CstmCstms s

ClearaClearance nce

CstmCstms s

ClearaClearance nce


VesseVessell


VesseVessell


ImportImport



ImportImport


SellerSeller

Fab Fab

the the

GoodsGoods

SellerSeller

Fab Fab

the the


to to the the


DlvryDlvry

to to the the



StoragStorage & e &

LaborLabor


StoragStorage & e &

LaborLabor

ForwarForwarder der

FeeFee

ForwarForwarder der

FeeFee

TerminaTerminal l

ChargesCharges

TerminaTerminal l

ChargesCharges


DELIVERED DUTY UNPAIDDELIVERED DUTY UNPAID(….named place of destination)(….named place of destination)

DDUDDU

Seller delivers the Seller delivers the goods to the buyer, not cleared for import, and goods to the buyer, not cleared for import, and not unloaded from any arriving means of transport at the named not unloaded from any arriving means of transport at the named place of destinationplace of destination. .

The seller has to bear the costs and risks involved in brining The seller has to bear the costs and risks involved in brining the goods thereto, other than, where applicable, any “duty” the goods thereto, other than, where applicable, any “duty” (which term includes the responsibility for and the risks of (which term includes the responsibility for and the risks of the carrying out of customs formalities, and the payment of the carrying out of customs formalities, and the payment of formalities, customs duties, taxes and other charges) for formalities, customs duties, taxes and other charges) for import in the country of destination. import in the country of destination.

Such duty has to be borne by the buyer as well as any costs Such duty has to be borne by the buyer as well as any costs and risks caused by his failure to clear the goods for import in and risks caused by his failure to clear the goods for import in time.time.

Customs Clearance Area for Storage, Appraisement & Release to the

importer

WEST WHARF

DDPDDP


Load Load the the

Goods Goods on on

the the

trucktruck

Load Load the the

Goods Goods on on

the the

trucktruck

ExpExp

Lice-Lice-nce nce



ExpExp

Lice-Lice-nce nce



Ocean Ocean


Cont. Cont.


Ocean Ocean


Cont. Cont.



of of

goodsgoods


of of

goodsgoods

Port Port


arrivalarrival

of of

shpmntshpmnt

Port Port


arrivalarrival

of of



MarkMark

Check Check


MarkMark

CstmCstms s

ClearaClearance nce

CstmCstms s

ClearaClearance nce


VesseVessell


VesseVessell


ImportImport



ImportImport


SellerSeller

Fab Fab

the the

GoodsGoods

SellerSeller

Fab Fab

the the


to to the the


DlvryDlvry

to to the the



StoragStorage & e &

LaborLabor


StoragStorage & e &

LaborLabor

ForwarForwarder der

FeeFee

ForwarForwarder der

FeeFee

TerminaTerminal l

ChargesCharges

TerminaTerminal l

ChargesCharges


DELIVERED DUTY PAIDDELIVERED DUTY PAID(….named place of destination)(….named place of destination)

DDPDDP

Seller Seller delivers the goods to the buyerdelivers the goods to the buyer, cleared for , cleared for import, and not unloaded from any arriving means import, and not unloaded from any arriving means of transport at the named place of destination. of transport at the named place of destination.

The seller has to bear all the costs and risks The seller has to bear all the costs and risks involved in brining the goods thereto including, involved in brining the goods thereto including, where applicable, any “duty” (which term includes where applicable, any “duty” (which term includes the responsibility for and the risks of the carrying the responsibility for and the risks of the carrying out of customs formalities and the payment of out of customs formalities and the payment of formalities, customs duties, taxes and other formalities, customs duties, taxes and other charges) for import in the country of destination.charges) for import in the country of destination.

Thank YouThank You

international commercial term 2000 ( incoterms 2000)

Documents

payment of goods

delivery of tangible

interpretation of trade

topic of inco terms

contract of sale

foreign trade

purpose of incoterms

misconceptions incoterms