4/27/2022

(EXW) Ex Works named place of delivery (O)

1. Delivery and Risk:
Freight Pre-paid Transactions Freight Collect Transactions
- EXW Means that seller delivers the goods to the buyer:
1. CPT 1. EXW
a) When it places the goods at the disposal of the buyer at a named place (like
2. CIP 2. FCA
factory or warehouse).
3. CFR 3. FAS
b) That named place may or may not be the seller’s premises. For delivery to occur, the
4. CIF 4. FOB

2022 TUTORIALS DAY 1 5. DAP

seller does not need to load the goods on any collecting vehicle , nor does it need to

PRACTICAL COMPUTATION 6. DPU

clear the goods for export, where such clearance is applicable

INCOTERMS 2020
7. DDP
2. Export Clearance:
- prepared by the buyer.
BY INTERNATONAL CHAMBER OF COMMERCE (ICC)
CB Kirk Buduan

INCOTERMS 2020 rules as obligations of

MULTIMODAL: (FCA) Free Carrier named place of delivery (O)
seller and buyer to each other
-VIA SEA OR VIA AIR 1. Delivery and Risk:
classified into:
- Free Carrier means that the seller delivers the goods to the buyer in one or other of
• EXW (EX WORKS) two ways.
1. General Obligations • FCA (FREE CARRIER) 1. seller’s premises
2. Delivery/Taking Delivery • CPT (CARRIAGE PAID TO) - they are loaded on the means of transport arranged by the buyer.
3. Transfer of risk • CIP (CARRIAGE AND INSURANCE PAID TO) 2. other than the seller’s premises
4. Carriage • DAP (DELIVERED AT PLACE) - loaded by the seller, however the unloading is on the account of the buyer.
5. Insurance • DPU (DELIVERED AT PLACE UNLOADED)
6. Delivery/transport document • DDP (DELIVERED DUTY PAID) 2. Export Clearance:
7. Export/Import clearance - prepared by seller.
8. Checking/packaging/marking
9. Allocation of costs
10. Notice

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(CPT) Carriage Paid To named place of destination (D) (DAP) Delivered at Place named place of destination (D) (DDP) Delivered Duty Paid named place of destination (D)

1. Delivery and Risk: 1. Delivery and Risk: 1. Delivery and Risk:

Carriage Paid To means the seller delivers the goods – and transfers - Delivered at Place means that the seller delivers the goods- - Delivered Duty Paid means that the seller delivers the
the risk to the buyer and transfers risk– to the buyer. goods to the buyer.
- By handing them over to the carrier - When goods are placed at the disposal of the buyer. - When the goods are placed at the disposal of the buyer
- (contracted by seller) - On the arriving means of transport ready for unloading - Cleared for import,
- The seller may do so by giving the carrier physical possession - At the named place of destination or - On the arriving means of transport,
of the goods in the manner and at the place appropriate to the - At the agreed point within that place, if any such point is - Ready for unloading
means of transport used. agreed. - At the named place of destination or at the agreed point within
2. Export Clearance: - Seller bears all the risks involved in bringing the goods to that place, if any such point is agreed.
- prepared by seller. the named place of destination or to the agreed point - Seller bears all the risks involved in bringing the goods to the
3. Place of delivery versus place of destination: within that place. named place of destination or to the agreed point within that
a. place of delivery = transfer of risk place.
b. place of destination = the point to which the 2. Export Clearance 3. Import Clearance 2. Export Clearance 3. Import Clearance
seller - prepared by seller. - prepared by buyer - prepared by seller. - prepared by seller
promises to contract for carriage.

(CIP) Carriage and Insurance Paid To named place of destination (D) (DPU) Delivered at Place Unloaded named place of destination (D)

1. Delivery and Risk: 1. Delivery and Risk: SEA AND INLAND WATERWAY ONLY
Carriage Paid To means the seller delivers the goods – and - Delivered at Place Unloaded means that the seller delivers
transfers the risk to the buyer the goods- and transfers risk– to the buyer. •FAS (FREE ALONGSIDE SHIP)
- By handing them over to the carrier - When the goods,
- (contracted by seller) - Once unloaded from the arriving means of transport •FOB (FREE ON BOARD)
- The seller may do so by giving the carrier physical possession
of the goods in the manner and at the place appropriate to the
-
-
Are placed at the disposal of the buyer
At the named place of destination or
•CFR (COST AND FREIGHT)
means of transport used. - At the agreed point within that place, if any such point is agreed. •CIF (COST, INSURANCE AND FREIGHT)
2. Export Clearance: - Seller bears all the risks involved in bringing the goods and unloading them at the named
- prepared by seller. place of destination.
3. insurance:
- seller should insure the goods from point of delivery to at 2. Export Clearance 3. Import Clearance
least the point of destination. - prepared by seller. - prepared by buyer

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(FAS) Free Alongside Ship named place of delivery (O)

(CFR) Cost and Freight named port of destination (D)
1. Delivery and Risk: EXPORTING COSTS POST IMPORTATION CHARGES
- Free Alongside Ship means that the seller delivers the goods to the buyer. 1. Delivery and Risk:
- When the goods are placed alongside the ship (e.g. on a quay or a barge) - Cost and Freight means that the seller delivers the goods to the buyer. • Incurred at the country of • Incurred at the country of
- Nominated by the buyer - On board the vessel exportation to port of entry in the importation from port of entry to
- At the named port of shipment - The risk of loss of or damage to the goods transfers when the goods are on Philippines final place of delivery.
• Also known as: Inland Charges;
- The risk of loss of or damage to the goods transfers when the goods are board the vessel, and the buyer bears all risks from that moment onwards. Other Charge; Origin Charges or • Examples: Unloading (THC, or
Other Costs maybe included in freight) ,
alongside the ship, and the buyer bears all costs from that moment onwards. The buyer will be well-advised therefore to purchase insurance for itself.
• Examples: Pick-up cost, inland arrastre, wharfage, customs
2. Export Clearance: clearing expenses, delivery,
freight and insurance, customs
- prepared by seller. 2. Export Clearance: export clearing expenses, THC brokerage fee
- prepared by seller. origin, ocean/air freight, marine • All in the Philippines
insurance

(CIF) Cost, Insurance and Freight named port of destination (D) POST IMPORTATION COSTS (PERMISSIBLE
(FOB) Free on Board named place of delivery (O)
1. Delivery and Risk: DEDUCTIONS) INCLUDED FOR THE
1. Delivery and Risk:
- Free On Board means that the seller delivers the goods to the buyer.
- Cost, Insurance and Freight means that the seller delivers FOLLOWING TERMS:
the goods to the buyer.
- On board the vessel
- On board the vessel
- Nominated by the buyer
- The risk of loss of or damage to the goods transfers DAP
- At the named port of shipment
when the goods are on board the vessel, such that the  Unloading from carrier
- The risk of loss of or damage to the goods transfers when the goods are on
seller is taken to have performed its obligation to deliver
board the vessel, and the buyer bears all costs from that moment onwards.  Delivery to buyer’s place
the goods whether or not the goods actually arrive at
their destination in sound condition, in the stated
2. Export Clearance: DPU
quantity or, indeed, at all.
- prepared by seller.
 Unloading from carrier
2. Export Clearance:  Delivery to buyer’s place
- prepared by seller.  Unloading from delivery truck

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POST IMPORTATION COSTS (PERMISSIBLE

DEDUCTIONS) INCLUDED FOR THE
FOLLOWING TERMS:

DDP
 Unloading from carrier
 Terminal charges
 Duties and taxes
 Customs clearing charge
 Delivery to buyer’s place