Understanding INCOTERMS Rules for International Trade
INCOTERMS rules are essential terms of trade for the sale of goods internationally, regulating responsibilities related to delivery, documentation, fees, and risk management. They are published to bring clarity and predictability to international trade, covering various aspects except for issues like place, currency, and payment extensions. These rules apply across different transport modes and are divided into four groups, each detailing specific responsibilities and obligations for buyers and sellers.
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Presentation Transcript
What are Incoterms rules? What are Incoterms rules? The world s essential terms of trade for the sale of goods. Acronym: International Commercial Terms
Who publishes the Incoterms rules? Who publishes the Incoterms rules?
Why use Incoterms rules in international Why use Incoterms rules in international trade? trade? Universal Clarity Predictability
What do they regulate? What do they regulate? Obligations resulting from the delivery Obligations resulting from the acceptance of the delivery Who is responsible for preparing the import-export and transport documentation Who pays for the packaging, transport and insurance fees Who pays for extra fees caused by the delay of the delivery of the goods Risks of loss or damage of the goods passing from the seller to the buyer
What Whatdo do they theyNOT NOT regulate regulate? ? Place, currency and payment extension Change in ownership Breach of the contract Complaints from the buyer for delayed or partial delivery
Rules for any transport mode Rules for any transport mode Ex Works EXW Ex Works EXW Free Carrier FCA Free Carrier FCA Carriage Paid To CPT Carriage Paid To CPT Carriage & Insurance Paid to CIP Carriage & Insurance Paid to CIP Delivered At Terminal DAT Delivered At Terminal DAT Delivered At Place DAP Delivered At Place DAP Delivered Duty Paid DDP Delivered Duty Paid DDP Rules for sea & inland waterway only Rules for sea & inland waterway only Free Alongside Ship FAS Free Alongside Ship FAS Free On Board FOB Free On Board FOB Cost and Freight CFR Cost and Freight CFR Cost Insurance and Freight CIF Cost Insurance and Freight CIF
Four groups: Four groups: Buyer responsible for all carriage EXW Buyer arranges main carriage FAS; FOB; FCA Seller arranges main carriage, risk passes after main carriage DAT; DAP; DDP Seller arranges main carriage, but risk passes before main carriage CFR; CIF; CPT; CIP
THANK YOU FOR YOUR ATTENTION Andrea Di Costanzo, Chiara Zanol
