4/29/12

Incoterms | international shipping incoterms| shipping Incoterm

Home | About Us | Clients | Credentials | Careers | FAQs | Sitemap

Translate in: English

Translate Search
RSS News

UNION BUDGET 2012-2013

Like

Search Cybex

Call Us: +91 120 4517800

Hom e

Online India Data

Global Trade Data

International Trade Resources

Indian Trade Law s

Sam ple Data

About Us W elc ome Guest

Contact Us

Home International Trade Resources Incoterms

Share on facebook

Share on twitter

Email This

Print this page

Bookmark this page!

User Login Username or Email Password

Incoterms - International Commercial Trade Terms for sale of goods INCOTERMS

The most complex & important tool of International Trade is Language. Small changes in wording can have a major impact on all the aspects of Business agreement, esp. in International Trade. For Business terminology to be effective, phrases must mean the same thing through out the industry. This is where Incoterms comes into existence. Incoterms is devised & published by the International Chamber of Commerce in 1936. Incoterms or International commercial terms are a series of international sales terms widely used throughout the world. INCOTERMS are designed to create a bridge between different members of the industry by acting as a uniform language they can use. ICC introduced the first version of Incoterms - short for "International Commercial Terms" - in 1936. Since then, ICC expert lawyers and trade practitioners have updated it many times to keep pace with the development of international trade. Effective January 1 of 2000, the ICC once again updated Incoterms to follow the modern trends in international trade. They should now be incorporated under the reference "Incoterms 2000" into contracts that are effective from January 2000 or any date thereafter. Incoterms 2000 are internationally accepted commercial terms defining the respective roles of the buyer (Importer) and seller (Exporter) in the arrangement of transportation and other responsibilities and clarify when the ownership of the merchandise takes place. These terms are incorporated into export-import sales agreements and contracts worldwide and are a necessary part of foreign trade. The main objective of Incoterms2000 defines the responsibilities and the obligations of a seller (Exporter) and a buyer (Importer) within the framework of international contracts of trade concerning loading, transport, type of transport, insurances and delivery. Its first function is about a distribution of transport charges. The second role of the Incoterms2000 is to define the place of transfer and the transport risks involved in order to justify the ownership for support and damage of goods by shipments sent by the seller (exporter) or the buyer (importer) in an event of execution of transport. Incoterms safeguard the following issues in the Foreign Trade contract or International Trade Contract: a) To determine the critical point of the transfer of the risks of the seller to the buyer in the process forwarding of the goods (risks of loss, deterioration,robbery of the goods) allow the person who supports these risks to make arrangements in particular in term of insurance. b) To specify is going to subscribe the contract of carriage that is to say the seller or the buyer. c) To distribute between the seller and the buyer the logistic and administrative expenses at the various stages of the process. d) To define who is responsible for packaging, marking, operations of handling, loading and unloading of the goods or the potting and the discharge of the containers as well as the operations of inspection. e) To fix respective obligations for the achievement of the formalities of exportation and /or importation, the payment of the rights and taxes of importation as well as the supply of the documents.

Remember Me Register Now Forgot Passw ord ?

Enquiry Form Name* Company Name Company Address Phone* Email*

Export Import Both Products Information Sought

Image Verification

Enter the security code

International Commercial Terms are a series of international trade terms that are used worldwide to divide the transaction costs and responsibilities between the seller and the buyer and reflect state-of-the-art transportation practices. Incoterms deal with the questions related to the delivery of the products from the seller (exporter) to the buyer (importer). This includes the carriage of products, export and import clearance responsibilities, who pays for what, and who has risk for the condition of the products at different locations within the transport process. Incoterms are always linked to a physical location and has nothing to do with the transfer of ownership.
Sample Data

Submit
*Compulsory

Reset

Fields

Useful Links

INCOTERMS are most frequently listed by category. Below are the 13 international Incoterms adopted by the International Chamber India Imports Data of Commerce.
India Exports Data

Group E (Departure):

India Ports Data US Imports Data

1) EXW - Ex Works (...named place): Ex works means that the seller (exporter) delivers when he places the goods at the disposal of the buyer (importer) at the seller's premises or another named place (i.e. works, factory, warehouse,Trade Resourc es etc.) not cleared for export and not loaded on any collecting vehicle.
HS Codes

This term thus represents the minimum obligation for the seller (exporter), and the buyer (importer) has to bear all costs and Exchange Rates risks involved in taking the goods from the seller's premises. However, if the parties wish the seller (exporter) to be DEPB responsible for the loading of the goods on departure and to bear the risks and all the costs of such loading, this should be Rates made clear by adding explicit wording to this effect in the contract of sale. Indian Custom Duty Group F (Main carriage unpaid):
Notifications

2) FCA - Free Carrier (...named place): Free Carrier means that the seller (exporter) delivers the goods, cleared for export, to the carrier nominated by the buyer (importer) at the named place. It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller's premises, the seller (exporter) is responsible for loading. If delivery occurs at any other place, the seller (exporter) is not responsible for unloading. This term may be used irrespective of the mode of transport, including multimodal transport. A Carrier means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport by rail, road, air, sea, inland waterway or by a combination of such modes.

www.cybex.in/International-Trade-Resources/Incoterms.aspx

1/4

4/29/12

by rail, road, air, sea, inland waterway or by a combination of such modes.

Incoterms | international shipping incoterms| shipping Incoterm

If the buyer (importer) nominates a person other than a carrier to receive the goods, the seller (exporter) is deemed to have fulfilled his obligation to deliver the goods when they are delivered to that person. 3) FAS - Free Alongside Ship (...named port of shipment): Free Alongside Ship means that the seller (exporter) delivers when the goods are placed alongside the vessel at the named port of shipment. This means that the buyer (importer) has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the seller (exporter) to clear the goods for export. However, if the parties wish the buyer (importer) to clear the goods for export, this should be made clear by adding explicit wording to this effect in the contract of sale. This term can be used only for sea or inland waterway transport. 4) FOB - Free On Board (...named port of shipment): Free on Board means that the seller (exporter) delivers when the goods pass the ship's rail at the named port of shipment. This means that the buyer (importer) has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller (exporter) to clear the goods for export. If the parties do not intend to deliver the goods across the ship's rail, the FCA term should be used. This term can be used only for sea or inland waterway transport. Group C (Main carriage paid) 5) CFR - Cost & Freight (...named port of destination): Cost and Freight means that the seller (exporter) delivers when the goods pass the ship's rail in the port of shipment. The seller (exporter) must pay the costs and freight necessary to bring the goods to the named port of destination but 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 transferred from the seller (exporter) to the buyer (importer). The CFR term requires the seller (exporter) to clear the goods for export. If the parties do not intend to deliver the goods across the ship's rail, the CPT term should be used. This term can be used only for sea and inland waterway transport. 6) CIF - Cost, Insurance & Freight (...named port of destination): Cost, Insurance and Freight means that the seller (exporter) delivers when the goods pass the ship's rail in the port of shipment. The seller (exporter) must pay the costs and freight necessary to bring the goods to the named port of destination but 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 transferred from the seller (exporter) to the buyer (importer). However, in CIF the seller (exporter) also has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. Consequently, the seller (exporter) contracts for insurance and pays the insurance premium. The buyer (importer) should note that under the CIF term the seller (exporter) is required to obtain insurance only on minimum cover. Should the buyer (importer) wish to have the protection of greater cover, he would either need to agree as much expressly with the seller (exporter) or to make his own extra insurance arrangements. The CIF term requires the seller (exporter) to clear the goods for export. If the parties do not intend to deliver the goods across the ship's rail, the CIP term should be used. This term can be used only for sea and inland waterway transport. 7) CPT - Carriage Paid To (...named place of destination): "Carriage paid to..." means that the seller (exporter) delivers the goods to the carrier nominated by him but the seller (exporter) must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer (importer) bears all risks and any other costs occurring after the goods have been so delivered. Carrier means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport, by rail, road, air, sea, inland waterway or by a combination of such modes. If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller (exporter) to clear the goods for export. This term may be used irrespective of the mode of transport including multimodal transport 8) CIP - Carriage and Insurance Paid To (...named place of destination): "Carriage and Insurance paid to..." means that the seller (exporter) delivers the goods to the carrier nominated by him but the seller (exporter) must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer (importer) bears all risks and any additional costs occurring after the goods have been so delivered. However, in CIP the seller (exporter) also has to procure insurance against the buyer's risk of loss of or damage to the goods during the carriage. Consequently, the seller (exporter) contracts for insurance and pays the insurance premium. The buyer (importer) should note that under the CIP term the seller (exporter) is required to obtain insurance only on minimum cover. Should the buyer (importer) wish to have the protection of greater cover, he would either need to agree as much expressly with the seller (exporter) or to make his own extra insurance arrangements. Carrier means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport, by rail, road, air, sea, inland waterway or by a combination of such modes. If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The CIP term requires the seller (exporter) to clear the goods for export. This term may be used irrespective of the mode of transport including multimodal transport. Group D (Arrival): 9) DAF - Delivered at Frontier (...named place): Delivered at Frontier means that the seller (exporter) delivers when the goods are placed at the disposal of the buyer (importer) on the arriving means of transport not unloaded, cleared for export, but not cleared for import at the named point and place at the frontier, but before the customs border of the adjoining country. The term "frontier" may be used for any frontier including that of the country of export. Therefore, it is of vital importance that the frontier in question be defined precisely by always naming the point and place in the term. However, if the parties wish the seller (exporter) to be responsible for the unloading of the goods from the arriving means of transport and to bear the risks and costs of unloading, this should be made clear by adding explicit wording to this effect in the contract of sale. This term may be used irrespective of the mode of transport when goods are to be delivered at a land frontier. When delivery

www.cybex.in/International-Trade-Resources/Incoterms.aspx

2/4

4/29/12

This term may be used irrespective of the mode of transport when goods are to be delivered at a land frontier. When delivery is to take place in the port of destination, on board a vessel or on the quay (wharf), the DES or DEQ terms should be used.

Incoterms | international shipping incoterms| shipping Incoterm

10) DES - Delivered Ex-Ship (...named port of destination): Delivered Ex Ship means that the seller (exporter) delivers when the goods are placed at the disposal of the buyer (importer) on board the ship not cleared for import at the named port of destination. The seller (exporter) has to bear all the costs and risks involved in bringing the goods to the named port of destination before discharging. If the parties wish the seller (exporter) to bear the costs and risks of discharging the goods, then the DEQ term should be used. This term can be used only when the goods are to be delivered by sea or inland waterway or multimodal transport on a vessel in the port of destination. 11) DEQ - Delivered Ex-Quay (...named port of destination): Delivered Ex Quay means that the seller (exporter) delivers when the goods are placed at the disposal of the buyer (importer) not cleared for import on the quay (wharf) at the named port of destination. The seller (exporter) has to bear costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay (wharf).The DEQ term requires the buyer (importer) to clear the goods for import and to pay for all formalities, duties, taxes and other charges upon import. If the parties wish to include in the seller's obligations all or part of the costs payable upon import of the goods, this should be made clear by adding explicit wording to this effect in the contract of sale. This term can be used only when the goods are to be delivered by sea or inland waterway or multimodal transport on discharging from a vessel onto the quay (wharf) in the port of destination. However if the parties wish to include in the seller's obligations the risks and costs of the handling of the goods from the quay to another place (warehouse, terminal, transport station, etc.) in or outside the port, the DDU or DDP terms should be used.
Us Envoy Powell Seeks Relook At Tax Issues Indian Custom Non-Tariff Notification Number 38/2012 (exporter) 12) DDU - Delivered Duty Unpaid (...named port of destination): Delivered duty unpaid means that the seller Customs delivers the goods to the buyer (importer), not cleared for import, and not unloaded from any arriving means of transport at In Her First Public Speech After Being Appointed Us Ambassador (N.T.) the named place of destination. The seller (exporter) has to bear the costs and risks involved in bringing the goods thereto, other than, where applicable, any "duty" (which term includes the responsibility for and the risks of the carrying out of To India, Nancy Powell Criticised The Union Government For Rate of exchange of conversion of each of the foreign currency customs formalities, and the payment of formalities, customs duties, taxes and other charges) for import in the country of Several Recent Policy Such "duty" has to be borne byConcern destination. Decisions That Cause Significant the buyer (importer) as well as anyay, 2012 and risks caused by his failure to with effect from 1st M costs clear the goods for import in time. And Dampen IndiaS Investment Climate Sentiment.

Export Of wording to this Productsthe contract Apr-Jan Fy12 Khadi & Village effect in Rs. 77 Cr In of sale.

However, if the parties wish the seller (exporter) to carry outDGFT Circular Number and bear the costs and risks resulting customs formalities 59(RE-2010)/2009-14 therefrom as well as some of the costs payable upon import of the goods, this should be made clear by adding explicit
File applications for 53 SEZ ports codes -reg.

Exports Of Khadi And Village used irrespective of the mode of transport but when delivery is to take place in the port of destination on This term may be Industries (Kvi) Products Reached Rs. 77 Crore In The First Nine M onths Of The Last Fiscal,

board the vessel or on the quay (wharf), the DES or DEQ terms should beNon-Tariff Notification Number 36/2012 Customs Indian Custom used.

13) DDP - Delivered Duty Paid (...named port of destination): Delivered duty paid means that the seller (exporter) delivers (N.T.) Accordingthe Officialto theReleased Friday. cleared for import, and not unloaded from any arriving means of transport at the named To goods Data buyer (importer), place of destination. The seller (exporter) has to bear all the costs of Common involved in bringing the goods thereto Appointment and risks Adjudicating Authority
Cardamom Prices Increasing On Delay In Crop Arrivals

Cardamom M arket Is Finding Support In Reports That The Next Crop Would Be Delayed On Account Of Insufficient Summer

including, where applicable (Refer to Introduction paragraph 14), any "duty" (which term includes the responsibility for and the risk of the carrying out of customs formalities and the payment of formalities, customs duties, taxes and other Indian Custom Non-Tariff Notification Number 35/2012 Customs charges) for import in the country of destination.
(N.T.) Whilst the EXW term represents the minimum obligation for the seller (exporter), DDP represents the maximum obligation. This term should not be used if the seller (exporter) is unable directly or indirectly to obtain the import license. Seeks to amend Notification No.12/97-Customs (N.T.) dated 2nd

Showers In The Producing Areas. Higher Exports Due To Lower

However, if the parties wish to exclude from the seller's obligations some of the costs payable upon import of the goods April, 1997 (such as VAT), this should be made clear by adding explicit wording to this effect in the contract of sale. Prices When Compared To The Previous Year Are Also Helping If the parties wish the buyer (importer) to bear all risks and costs of the import, the DDU term should be used. This term may Indian Custom Non-Tariff Notification Number on board the vessel be used irrespective of the mode of transport but when delivery is to take place in the port of destination 34/2012 Customs Until The or onCropquay (wharf), thearket. or DEQ terms should be used. New the Arrives In The M DES
The M arket. Traders Estimate The M arket To Remain Steady (N.T.) No Plan To Ban Chrome Exports For Now: M inister The Centre Has No Plan To Impose Complete Ban On Export Of Seeks to amend Notification No.12/97-Customs (N.T.) dated 2nd April, 1997

EXIM NEWS - EXPORT IMPORT

LATEST NOTIFICATIONS

Chrome For Now Ore As The Present Production Of The Steel Raw M aterial Is Sufficient To M eet Domestic Consumption As Well As Export Requirements, The Lok Sabha Was Informed Friday.

Central Excise Non-Tariff Notification Number 24/2012 - C.E. (N.T.) Regarding CENVAT credit taken or utilized on the process cutting, slitting or printing of aluminium foils

Faridabad Textile Industry Weave Growth; Focusing M ore On Exports The Textile Industry Has Always Been A Key Pillar Of Faridabad's Economy. Now, On The Back Of Double-Digit Growth Rate And High Home Trade, The Industry Keeps The Local Economy On Volumes Indian Custom Data A Still Stronger Footing. The CompoundJNPT Export Rate Of Annual Growth Data About Us

DGFT Notification Number 111(RE-2010)/2009-14 Indian Trade Classification(Harmonised System) of Export and Import Items, 2012 [ITC(HS),2012]

International Trade Data

Service Tax Circular Number 157/8/2012

International Trade Resources

HS Codes China Import Data Contact Us Indian Custom Duty Delhi TKD Export Data RegardingChina Export Data services provided by the Agricultural Produce 20 Percent Is Proof That The Industry Is A Key Growth Driver For News DEPB Rate Chennai Air Export Data USA Import Data M arketing Committee (APM C) /Board XM L Notifications Chennai Import Data UK Import Data Faridabad. Feedback Exim Policy Russia Import Data M adras Sea Export Data FAQs IEC Code Russia Export Data Calcutta Sea Export Data Indian Trade Law Indian Circulars Chana Prices Rising Rapidly As Demand Rises For BesanExport Data Kolkata Air
Chana Prices Are Rapidly Rising As Demand Rises For Besan But Arrivals Of The Winter Harvest Dwindle. Chana Has The Biggest Share Of The Indian Pulses M arket.

Indian Export Data India Import Data Indian Ports Data

Custom Notifications

Indian Custom Data | Global Trade Data | International Trade Resources | Indian Trade Law s | FAQs | Terms & Conditions/Disclaimer | Feedback | Credentials | About Us | Contact Us | New s | XML |

www.cybex.in/International-Trade-Resources/Incoterms.aspx

3/4

4/29/12
Register Now
Like 262

Incoterms | international shipping incoterms| shipping Incoterm

Custom Notifications

C opyright 2010, All rights re se rve d with www.cybex.in (Export262 Import Data Portal) Like Contact Sample | | |

Us

Data

www.cybex.in/International-Trade-Resources/Incoterms.aspx

4/4