Design: M.H.H.

Mooren

Incoterms
2000

critical points in international transport

The diagrams are based on interpretations of the "Incoterms 2000" as published by the International Chamber of Commerce in Paris. Whilst every effort has been made to ensure accuracy of information contained in these diagrams, no responsibilty for errors or omissions can be accepted by Philips. These diagrams illustrate critical points in international transport in relation to the application of "Incoterms 2000" to sales and purchases. "Incoterms" contain international rules for the interpretation of the terms used in foreign trade contracts which have been compiled by the International Chamber of Commerce (ICC) in order to define sellers' and buyers' responsibilities as clearly and precisely as possible. It is not possible for "Incoterms" to be fully comprehensive due to variations decided by the custom of particular trades and/or ports. Care should be taken when applying the rules to account for these eventualities. Contracts governed by the provisions of "Incoterms 2000" should clearly indicate so.

critical points in international transport

all modes of transport

Incoterms
2000
sea and inland waterway transport

SELLER 1

CUSTOMS 4 CARGO TERMINAL 3

5 7 8

13 10 CUSTOMS 11 CARGO TERMINAL 12

BUYER 14

SELLER 1

CUSTOMS 4 CARGO TERMINAL 3

5 7 8

13 10 CUSTOMS 11 CARGO TERMINAL 12

BUYER 14

Ex Works
DOCS RISKS COSTS

EXW

Free Alongside Ship

DOCS RISKS COSTS

FAS

Free Carrier (loading at seller's premises)

DOCS RISKS COSTS

FCA

Free On Board
DOCS RISKS COSTS

FOB

Free Carrier
DOCS RISKS COSTS

FCA

Cost and Freight

DOCS RISKS COSTS

CFR

Carriage Paid To
DOCS RISKS COSTS

CPT

Cost, Insurance and Freight

DOCS RISKS COSTS

CIF

Carriage and Insurance Paid to

DOCS RISKS COSTS

CIP

Delivered Ex Ship
DOCS RISKS COSTS

DES

Delivered At Frontier
DOCS RISKS COSTS

DAF

Delivered Ex Quay
DOCS RISKS COSTS

DEQ

Delivered Duty Unpaid

DOCS RISKS COSTS

DDU
Critical point A critical point is that point in transit where the seller's responsibility ends and the buyer's responsibility begins. Documents (DOCS) Documents, which are required to enable the seller to put goods at buyer's disposal at the critical point are arranged and paid for by the seller.

Legend
Risks The possibility that an event may occur which could cause loss of, or damage to the goods is a "risk". Buyers and sellers can protect themselves against risks by insurance. Costs Cover all costs except costs of documents and insurance. Sales and purchase contracts should clearly state which costs on transfer of the goods are for account of buyer and seller.

Delivered Duty Paid

DOCS RISKS COSTS

DDP

... Incoterms to be completed with "named place"

... Incoterms to be completed with "named port"

This mark indicates what, in some cases, due to agreement between buyer and seller, is to arrange for buyer's account and risk, e.g. if buyer wishes, the seller shall, for the buyer's account and risk, assist with documents which may be required from the agreed critical point for export, for transit through other countries and for import.

All rights reserved. Reproduction in whole or in part is prohibited without the written consent of the copyright owner. For detailed explanation reference is made to ICC publication "Incoterms 2000" Copyright Koninklijke Philips Electronics N.V. - Corporate Purchasing & Forwarding - Forwarding & Distribution.