Chapter 2 - Incoterms 2020 - Part 1

05/06/2023
FOREIGN
TRADE
OPERATIONS
PHAN VŨ NGỌC LAN – MDE

International Business Administration Department
lanpvn@huflit.edu.vn
INCOTERMS
CHAPTER 2
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05/06/2023
IN THIS CHAPTER
General information
A brief history
Purpose and Scope
Incoterms®2020
Other versions of Incoterms
2.1. GENERAL INFORMATION

- International Commercial Terms: a
universally recognized set of definitions
of international trade terms developed
by the International Chamber of
Commerce (ICC) in Paris, France in 1936.
- Defines the trade contract
responsibilities and liabilities between
buyer and seller.
- An invaluable and cost-saving tool 
not undergo a lengthy negotiation
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2.2. A BRIEF HISTORY
2010 –
1980 – FRC (rise number of
of trade terms
containerization) reduced
1976 –
1990 – FRC => from 13 to
FOB Airport FCA 11
2000 – major 2020 – DPU
1953 – 3 replaces
non- changes to
maritime delivery section, DAT
1936 – 1st terms (FOR, making FCA far
edition (6 FOT, DCP) clearer & easier
trade terms 1967 – to use
relating to
carriage by DAF & DDP
sea
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2.3. PURPOSES AND SCOPES

INCOTERMS - PURPOSES
- To provide a set of
international rules for
the interpretation of
the most commonly
used trade terms in
foreign trade.
- To avoid / reduce
uncertainties of • Obligations
different • Costs
interpretations of such • Risks
terms in different
countries.
INCOTERMS - SCOPE
Deal only with the relation between sellers and

buyers under the contract of sale, on some very
distinct respects:
 Rights and obligations for both parties in
connection with:
 Risk transferring
 Cost division
 Delivery of tangible goods.
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INCOTERMS - SCOPE
NOT deal with the • Incoterms CAN NOT replace

breach of contract and contract terms needed for a
its consequences or any sales contract
exemptions from • Incoterms CAN NOT be used
liability, or transfer of as a complete foreign contract
title of the goods sold of sale.
• If you want the Incoterms

2020 rules to apply into your
NOT compulsory, just contract of sale, you should
trade usage make this clear in the contract.
INCOTERMS® –
EXPLANATION OF THE
TERMS Carrier
Customs
formalities
Packaging Delivery
Delivery
document
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DELIVERY
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GROUP WORK: (5MINS, 7 STUDENTS/GROUP)
A buyer wants to buy a pizza. He has the following

choices.
For each choice, where (at what point) do risks of loss
or damage (point of risk transfer) to the pizza transfer
from the seller to the buyer?
• 1/ Case 1: The seller shall bring the pizza from the seller’s
shop in Dist.1 to the buyer’s place in Huflit, Dist.10
• 2/ Case 2: The buyer shall come to the seller’shop and take
delivery of the pizza
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DELIVERY
DELIVERY
where the risk of loss or
damage passes from the
seller to the buyer
If loss/damage If loss/damage
occurs BEFORE the occurs AFTER the
point of delivery => point of delivery =>
the seller’s problem the buyer’s problem
NOTES: CFR, CIF, CPT, CIP
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DELIVERY
This concept has
multiple meanings
in trade law and
practice, but in the
Incoterms rules, it
is used to indicate
where the risk of
loss or damage to
the goods passes
from the seller to
the buyer.
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2.4. INCOTERMS® 2020
-Registered trademark (® sign)

-“Terms”  “Rules”
-International + Domestic use
“Global” use
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Seller’s obligations Buyer’s obligations
A1. General obligations B1. General obligations
A2. Delivery B2. Taking delivery
A3. Transfer of risks B3. Transfer of risks
A4. Carriage B4. Carriage
A5. Insurance B5. Insurance

A6. Delivery/transport B6. Proof of delivery
document
A7. Export/import B7. Export/import clearance
clearance
A8. Checking/packaging/ B8. Checking/packaging/
marking marking
A9. Allocation of costs B9. Allocation of costs
A10. Notices B10. Notices

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CLASSIFICATION (1) – BASED ON MODE OF

TRANSPORT
A. Rules for any mode of transport
EXW Ex Works
FCA Free Carrier
CPT Carriage Paid To
CIP Carriage and Insurance Paid to
DAP Delivered At Place
DPU Delivered at Place Unloaded
DDP Delivered Duty Paid
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TRANSPORT
B. Rules for sea and inland waterway transport
FAS Free Alongside Ship
FOB Free On Board
CFR Cost and Freight
CIF Cost Insurance and Freight
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CLASSIFICATION (2) – BASED ON POINT OF DELIVERY

seller/buyer?
Point
Seller places the goods at the disposal of the
Buyer at his own premises or at an another
Group E: agreed place of delivery. (EXW)
of
Seller delivers the goods to the carrier at named

place of delivery/port of shipment, Buyer is
delivery:
Group F: responsible for the cost and risk of carriage from

named place/port of shipment. (FCA, FAS, FOB)
• Seller arranges and pays for the carriage to
named place/port of destination, but bears the
Group C: risk of the goods only upto the agreed point of
closest
delivery. (CFR, CIF, CPT, CIP)
• Seller bears all transport cost and risks up to the

delivery – destination point. (DAP, DPU, DDP)
to
Group D:
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INCOTERMS® 2020
EXW
DDP FCA
DPU FAS
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Incoterms
DAP rules FOB
2020
CIP CFR
CPT CIF
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EXW
DDP FCA
DPU FAS
1. Point of risk transfer?
2. Point of cost transfer?
3. Seller’s & buyer’s obgliations?
DAP FOB
4. Transportation method?
CIF CPT
CFR CIP
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TRANSPORT
A. Rules for any mode of transport
EXW Ex Works
FCA Free Carrier
CPT Carriage Paid To
CIP Carriage and Insurance Paid to
DAP Delivered At Place
DPU Delivered at Place Unloaded
DDP Delivered Duty Paid
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EXW- INCOTERMS®2020
* Ex-Works - EXW (named place of delivery)

-The Seller delivers when he places the goods at the
disposal of the buyer at a named place (like a
factory/works or warehouse) and that named place
may or may not be the seller’s premises.
-Note: Sellers are not obligated to load the goods on

collecting vehicles (appointed by the Buyer) nor clear the
goods for export.
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EXW EX WORKS:
1. POINT OF RISK TRANSFER
2. POINT OF COST TRANSFER
Seller’s Buyer’s
obligations obligations
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EXW EX WORKS
EXW + NAMED PLACE OF DELIVERY (INCOTERMS 2020)
Point of risk transfer = Point of cost transfer
Building Works/factory Warehouse
May or may not be seller’s premises
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EXW EX WORKS
EXW + NAMED PLACE OF DELIVERY (INCOTERMS 2020)
VD. Huflit exports 1 MT of
Hòa Lộc mango to the US.
 Trade terms: EXW
 Point of risk transfer:
828 Su Van Hanh St.,
Dist.10, HCMC,
Vietnam
How will you stipulate this in

the sales contract?
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EXW EX WORKS
EXW (INSERT NAMED PLACE OF DELIVERY)
(INCOTERMS 2020)
What are the

seller’s and
buyer’s
obligations?
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Obligations EXW
EXW EX 1 Checking + packaging + marking
WORKS
EXW 2 Loading on means of transport at seller’s premises
(INSERT 3 Export clearance
NAMED 4 Delivery/transport document
PLACE 5 Domestic precarriage (inland freight) from seller’s premises to
OF place/port of shipment
DELIVER 6 Loading on (main) carriage
Y) 7 Contract of (main) carriage to named place/port of destination
(INCOTER 8 Contract of insurance

MS 2020) 9 Unloading at named place/port of destination
10 Import clearance
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FCA FREE CARRIER

FCA (INSERT NAMED PLACE OF DELIVERY) (INCOTERMS 2020)
Delivery is completed:
when the goods are placed

when the goods have been at the disposal of the carrier
loaded on the means of or another person
transport arranged by the nominated by the buyer
buyer ready for unloading at the
named other place
if the named place of if the named place of

delivery is the seller’s delivery is NOT the seller’s
premises premises
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FCA FREE CARRIER

FCA (INSERT NAMED PLACE OF DELIVERY)
(INCOTERMS 2020)
FCA 1:
At seller’s
premises
FCA 2:
At another
place
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FCA FREE CARRIER

(INCOTERMS 2020)
point of risk transfer = point of cost transfer
= named place of delivery
Building Works or Warehouse Port of

factory shipment
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FCA - INCOTERMS®2020
* Free Carrier - FCA (named place of delivery)
- If the named place is the Seller’s premises, the delivery is
completed when the goods have been loaded on the means of
transport provided by the Buyer.
- If the named place is a place other than the Seller’s premises,
the delivery is completed when the goods are placed at the
disposal of the carrier or another person nominated by the Buyer
on the Seller’s means of transport ready for unloading.
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FCA - INCOTERMS®2020
* Free Carrier - FCA (named place of delivery)
-The Buyer must instruct the Carrier to issue to the Seller an “on-
board” B/L.
-Where the Buyer has instructed the carrier to issue to the Seller a
transport document, the Seller must provide any
such document to the Buyer.
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FCA FREE CARRIER

FCA (INSERT NAMED PLACE OF DELIVERY) (INCOTERMS 2020)
Example: HUFLIT exports mangos to USA.
 Incoterms: FCA
 Point of risk transfer:
Question:
How would you write this rule in your sales contract?
FCA 1: Place of delivery: 828 Su FCA 2: Place of delivery: Tan Son

Van Hanh St., Dist. 10, Hochiminh Nhat airport, Hochiminh City,
City, Vietnam Vietnam
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FCA FREE CARRIER – GROUP WORK (7MINS)

A SELLER IN HOCHIMINH CITY, VIETNAM SHALL EXPORT 1 TON OF
MANGOS PACKAGED IN CARTONS BY AIR TO A BUYER IN UK.
TRADE TERMS:
CASE 1: EXW 828 SU VAN HANH ST., DIST. 10, HOCHIMINH CITY,
VIETNAM (INCOTERMS 2020)
CASE 2: FCA 828 SU VAN HANH ST., DIST. 10, HOCHIMINH CITY, VIETNAM
(INCOTERMS 2020)
CASE 3: FCA TAN SON NHAT AIRPORT, HOCHIMINH CITY, VIETNAM
(INCOTERMS 2020)
QUESTION: IDENTIFY THE POINT OF RISK TRANSFER AND THE POINT OF
COST TRANSFER OF EACH CASE?
Point of risk transfer Point of cost transfer
Case 1
Case 2
Case 3
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FCA FREE CARRIER

(INCOTERMS 2020)
Obligations
of the seller &
the buyer?
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Obligations FCA 1 FCA 2
1 Checking + packaging + marking

FCA 2 Loading on means of transport at seller’s
FREE premises
CARRIER 3 Export clearance
FCA 4 Delivery/transport document
(INSERT 5 Domestic precarriage (inland freight) from seller’s
NAMED premises to place/port of shipment
PLACE OF 6 Loading on (main) carriage
DELIVERY) 7 Contract of (main) carriage to named place/port
(INCOTER of destination
MS 2020) 8 Contract of insurance
9 Unloading at named place/port of destination
10 Import clearance
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CPT CARRIAGE PAID TO

CPT (INSERT NAMED PLACE OF DESTINATION)
(INCOTERMS 2020)
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CPT CARRIAGE PAID TO:

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CPT & FCA:

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LOOK AT THE TWO PICTURES AND IDENTIFY THE

DIFFERENCES BETWEEN FCA & CPT
CPT FCA
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CPT - INCOTERMS®2020
* Carriage Paid To - CPT (place of destination)
-The Seller delivers the goods (and transfers the risk) to the Buyer by
handing them over to the carrier contracted by the Seller or by
procuring the goods so delivered.
-Note: 2 critical points:
+ Place of delivery: The risk passes when the goods are handed over
to the carrier (not until the goods reach the destination);
=> Identifying the place of delivery as precisely as possible. If a
place/point of delivery is not specified/agreed on, the default
position is when the goods have been delivered to the first carrier at
a point entirely of the seller’s choice.
+ Place of destination: The cost of carriage will be covered by the
seller until the goods reach the destination.
=> Identifying the destination as precisely as possible.
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CPT - INCOTERMS®2020
* Carriage Paid To - CPT (place of destination)
- Seller’s obligations:
+ To provide the goods, necessary documents (commercial invoice,
transport document),
+ To obtain any export license, conduct all necessary customs
formalities for the export of the goods,
+ To contract for the carriage of the goods from the agreed point of
delivery to the named place of destination
+ To deliver the goods by handling them over to the carrier,
+ To pay the freight and other carriage cost including the cost of
loading the goods and unloading the goods at the place of destination
(but only if those unloading charges were for the seller’s account under
the contract of carriage. If such costs were not for the Seller’s account,
the Buyer must pay unloading costs.)
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CPT CARRIAGE PAID TO

CPT (INSERT NAMED PLACE OF DESTINATION) (INCOTERMS 2020)
Ex. CPT
Healthrow
airport,
London, UK
(Incoterms
2020)
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FCA & CPT – GROUP WORK (5MINS)

A SELLER IN HOCHIMINH CITY, VIETNAM SHALL EXPORT 1 TON OF
MANGOS PACKAGED IN CARTONS BY AIR TO A BUYER IN UK.
TRADE TERMS:
CASE 1: FCA TAN SON NHAT AIRPORT, HOCHIMINH CITY, VIETNAM
(INCOTERMS 2020)
CASE 2: CPT HEALTHROW AIRPORT, LONDON, UK (INCOTERMS 2020)
(NOTE: PLACE OF DELIVERY: TAN SON NHAT AIRPORT, HOCHIMINH CITY,
VIETNAM)
QUESTION: IDENTIFY THE POINT OF RISK TRANSFER AND THE POINT OF
COST TRANSFER OF EACH CASE?
Case 1
Case 2
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CIP - INCOTERMS®2020
Carriage and Insurance Paid To CIP (named place of destination)
-The Seller delivers the goods (and transfers the risk) to the Buyer by
handing them over to the carrier contracted by the Seller or by procuring
the goods so delivered;
-Note: 2 critical points:
+ Place of delivery: The risk passes when the goods are handed over to
the carrier (not until the goods reach the destination);
=> Identifying the place of delivery as precisely as possible. If a
place/point of delivery is not specified/agreed on, the default position
is when the goods have been delivered to the first carrier at a point
entirely of the seller’s choice.
+ Place of destination: The cost of carriage will be covered by the seller
until the goods reach the destination.
=> Identifying the destination as precisely as possible.
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CIP CARRIAGE AND INSURANCE PAID TO:

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CIP CARRIAGE AND INSURANCE PAID TO

CIP (INSERT NAMED PLACE OF DESTINATION) (INCOTERMS 2020)
Ex. CIP
Healthrow
airport,
London, UK
(Incoterms
2020)
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* Carriage and Insurance Paid To - CIP (named place of destination)
- Seller’s obligations:
+ To provide the goods, necessary documents (commercial invoice,
transport document),
+ To obtain any export license, conduct all necessary customs
formalities for the export of the goods,
+ To contract for the carriage of the goods from the agreed point of
delivery to the named place of destination
+ To deliver the goods by handling them over to the carrier,
+ To pay the freight and other carriage cost including the cost of
loading the goods and unloading the goods at the place of destination
(but only if those unloading charges were for the seller’s account under
the contract of carriage. If such costs were not for the Seller’s account,
the Buyer must pay unloading costs.)
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Carriage and Insurance Paid To –
CIP (named place of destination)
- Seller’s obligations: (cont.)
+ Obtain cargo insurance:
* complying with the cover provided by Clauses (A) of the Institute
Cargo Clauses (lmA/IUA) or any similar clauses,
* with underwriters or an insurance company of good repute,
* covering, at a minimum, the price provided in the contract plus 10%
(i.e. 110%), in the currency of the contract.
* covering against the buyer’s risk of loss of or damage to the goods
from the agreed point of delivery to at least the point of destination.
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CPT - INCOTERMS ® 2020

Obligations EXW FCA FCA CPT CIP
(1) (2)
2 Loading on means of transport at seller’s premises
3 Export clearance
4 Delivery/transport document
5 Domestic precarriage (inland freight) from seller’s premises to
place/port of shipment
6 Loading on (main) carriage
7 Contract of (main) carriage to named place/port of destination
8 Contract of insurance
9 Unloading at named place/port of destination
10 Import clearance
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WHAT LOSSES PEOPLE OR BUSINESES CAN INSURE AGAINST?

SOME RISKS COVERED BY ICC (A) (LMA/IUA)
Fire/Explosio Vessel Earthquakes

n stranded/sunk
Jettison Washing Entry of sea Theft

overboard lake or river
water
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TYPES OF COVER [BY LMA/IUA]
Institute cargo clauses (A): covers all risks of loss or of

damage to the subject matter insured except some
exclusions
Institute cargo clauses (B): covers less

than (A)
Institute cargo clauses (C):

covers less than (B)
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INSTITUTE CARGO CLAUSES (C) (1/1/09)

[2009 VERSION BY LMA/IUA]
• Fire or explosion
1
• Vessel or craft stranded grounded sunk or capsized

2
• Overturning or derailment of land conveyance

3
• Collision or contact with any external object other than
4 water
• Discharge of cargo at a port of distress

5
• General average sacrifice & salvage charges

6
• Jettison
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INSTITUTE CARGO CLAUSES (B) & (A) (1/1/09)

[2009 VERSION BY LMA/IUA]
Risks covered by Institute cargo clauses Risks covered by Institute cargo
(B) clauses (A)
Institute cargo clauses (C)
Institute cargo clauses (B)
Washing overboard
Earthquake volcanic eruption or

lightning Theft, pilferage & non-delivery
Entry of sea lake or river water All other risks except wilful misconduct
into vessel craft hold conveyance of the insured, wear & tear,
container or place of storage insufficiency or unsuitability of
packing/preparation of subject-matter,
inherent vice/nature of subject-matter,
delay, insolvency/financial default,
radioactive/nuclear risk,
Total loss of any package lost unseaworthiness/unfitness of vessel,
overboard or dropped whilst war risk, strike risk (adds-on: Institute
loading on to, or unloading from, War Clauses and Institute Strikes
vessel or craft Clauses)
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DAP - INCOTERMS®2020
DELIVERED AT PLACE - DAP (NAMED PLACE OF
DESTINATION)
The seller delivers (or delivery is completed)
(and transfers risk) to the Buyer when:
• The goods are placed at the disposal of the buyer, on the
arriving means of transport ready for unloading at the
named place of destination.
The seller’s risks & costs
• The seller bears all risks and costs involved in bringing the
goods to the named place of destination (NOT the risk and
cost of unloading the goods at the named place of
destination) (LP)
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DELIVERED AT PLACE - DAP (NAMED PLACE OF
DESTINATION)
64
DAP DELIVERED AT PLACE:

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DAP DELIVERED AT PLACE

DAP (INSERT NAMED PLACE OF DESTINATION) (INCOTERMS 2020)
 Ex. DAP Cambridge
University,
England, UK
(Incoterms 2020)
66
Delivered At Place - DAP (named place of destination)
-Seller’s obligations:
+ To provide the goods, necessary documents (commercial invoice, transport
document),
+ To obtain any export license, conduct all necessary customs formalities for
the export of the goods,
+ To contract or arrange for transportation/carriage of the goods to the
named place of destination,
+ To deliver the goods by placing them at the disposal of the buyer on the
arriving means of transport ready for unloading at the agreed point at a
+ To pay all costs relating to the goods and their transport until they have
been delivered,
+ Unloading costs—The seller is not required to unload the goods from the
arriving means of transportation.
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CPT & DAP – GROUP WORK (3MINS)

A SELLER IN HOCHIMINH CITY, VIETNAM SHALL EXPORT 1 TON OF MANGOS
PACKAGED IN CARTONS BY AIR TO A BUYER IN UK.
TRADE TERMS:
CASE 1: CPT HEALTHROW AIRPORT, LONDON, UK (INCOTERMS 2020)
( NOTE: PLACE OF DELIVERY: TAN SON NHAT AIRPORT, HOCHIMINH CITY,
VIETNAM)
CASE 2: DAP HEALTHROW AIRPORT, LONDON, UK (INCOTERMS 2020)
QUESTION: IDENTIFY THE POINT OF RISK TRANSFER AND THE POINT OF COST
TRANSFER OF EACH CASE?
Case 1
Case 2
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DPU - INCOTERMS®2020
DELIVERED AT PLACE UNLOADED - DPU (NAMED
PLACE OF DESTINATION)
• The goods are unloaded from the arriving means of
transport placed at the disposal of the buyer at the named
place of destination.
goods to the named place of destination (including the risk
and cost of unloading the goods at the named place of
destination) (LP)
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DPU DELIVERED AT PLACE UNLOADED:

72
DPU DELIVERED AT PLACE UNLOADED

DPU (INSERT NAMED PLACE OF DESTINATION) (INCOTERMS 2020)
Ex. DPU
Healthrow
airport,
London, UK
(Incoterms
2020)
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DPU - INCOTERMS®2020
DELIVERED AT PLACE UNLOADED - DPU (NAMED PLACE
OF DESTINATION)
document),
+ To obtain any export license, conduct all necessary customs formalities for
the export of the goods,
+ To unload the goods from the arriving means of transport and then
deliver them by placing them at the disposal of the buyer at the named
place of destination,
+ To pay all costs relating to the goods and their transport until they have
been unloaded and delivered,
+ Unloading costs—The seller is required to unload the goods from the
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DDP - INCOTERMS®2020
DELIVERED DUTY PAID - DDP (NAMED PLACE OF
DESTINATION)
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DDP DELIVERED DUTY PAID:

76
DESTINATION)
• The goods are placed at the disposal of the buyer, cleared
for import, on the arriving means of transport ready for
unloading at the named place of destination.
goods to the named place of destination (NOT including the
risk and cost of unloading the goods at the named place of
destination) (LP)
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DDP DELIVERED DUTY PAID

DDP (INSERT NAMED PLACE OF DESTINATION) (INCOTERMS
2020)
 Ex. DDP Cambridge
University, England,
UK (Incoterms 2020)
78
DESTINATION)
document),
+ To carry out and pay for all export/transit/import clearance formalities
required by the countries of export, transit and import to clear the goods for
export and import (such as export/transit/import licence; security clearance
for export/transit/import; pre-shipment inspection)
+ To deliver the goods by placing them at the disposal of the buyer on the
arriving means of transport ready for unloading at the named place of
destination,
+ To pay all costs relating to the goods and their transport until they have been
delivered,
+ Unloading costs—The seller is NOT required to unload the goods from the
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Obligations EX FC FC CP CI D D D
W A A T P A P DP
(1) (2) P U
2 Loading on means of transport at

D14 seller’s premises
3 Export clearance
4 Delivery/transport document
5 Domestic precarriage (inland freight)
from seller’s premises to place/port of
shipment
6 Loading on (main) carriage
7 Contract of (main) carriage to place/port
of destination
8 Contract of insurance
9 Unloading at named place/port of
destination
10 Import clearance
80
Risk –transfer point/ EX FCA FCA CP CI DA DP DD

Delivery point W (1) (2) T P P U P
At the named place of delivery
Alongside the ship at the port of shipment

[port of loading]
On board the vessel at the port of shipment
[port of loading]
When the goods delivered to the first
carrier contracted by the seller at a point of
delivery entirely of the seller’s choice*
D15
On the arriving vehicle ready for unloading
at named place of destination
At named place of destination, unloaded
from the arriving vehicle
NOTE: * OR: When the goods delivered at a point of delivery specified/identified in the contract
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Slide 80
D14 Proof of delivery is not necessarily transport document.

Ex.
FCA requires the seller to provide the buyer with just "usual proof'' instead of transport document.
However, the seller must provide assistance to the buyer in obtaining a transport document.
DELL, 05/09/2019
Slide 82
D15 DELL 01/10/2019

CPT & CIP: the parties are well advised to identify as precisely as possible in the contract both the place
of delivery and the named place of destination.
if no specific point of delivery agreed on, the default position is that risk passes when the goods
delivered to the first carrier nominated by the seller at a point entirely of the seller’s choice.
if a place of delivery is agreed on in the sale contract, then risk passes when the goods delivered to the
carrier nominated by the seller at that agreeed point of delivery.
Should the parties wish the risk to pass at a later stage (e.g., at an ocean port or airport), they need to
specify this in their contract of sale.
(ICC p147)
DELL, 02/10/2019
05/06/2023

TRANSPORT
B. Rules for sea and inland waterway transport
FAS Free Alongside Ship
FOB Free On Board
CFR Cost and Freight
CIF Cost Insurance and Freight
84
THANK YOU FOR YOUR LISTENING
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Available Formats

05/06/2023

PHAN VŨ NGỌC LAN – MDE

Purpose and Scope

Other versions of Incoterms

2.1. GENERAL INFORMATION

2.2. A BRIEF HISTORY

2.3. PURPOSES AND SCOPES

Deal only with the relation between sellers and

NOT deal with the • Incoterms CAN NOT replace

• If you want the Incoterms

GROUP WORK: (5MINS, 7 STUDENTS/GROUP)

A buyer wants to buy a pizza. He has the following

NOTES: CFR, CIF, CPT, CIP

2.4. INCOTERMS® 2020

-Registered trademark (® sign)

Seller’s obligations Buyer’s obligations

A1. General obligations B1. General obligations

A2. Delivery B2. Taking delivery

A3. Transfer of risks B3. Transfer of risks

A4. Carriage B4. Carriage

A5. Insurance B5. Insurance

A9. Allocation of costs B9. Allocation of costs

A10. Notices B10. Notices

CLASSIFICATION (1) – BASED ON MODE OF

CLASSIFICATION (1) – BASED ON MODE OF

CLASSIFICATION (2) – BASED ON POINT OF DELIVERY

Seller delivers the goods to the carrier at named

Group F: responsible for the cost and risk of carriage from

delivery. (CFR, CIF, CPT, CIP)

• Seller bears all transport cost and risks up to the

CLASSIFICATION (1) – BASED ON MODE OF

* Ex-Works - EXW (named place of delivery)

-Note: Sellers are not obligated to load the goods on

Point of risk transfer = Point of cost transfer

Building Works/factory Warehouse

May or may not be seller’s premises

How will you stipulate this in

What are the

(INCOTER 8 Contract of insurance

FCA FREE CARRIER

when the goods are placed

if the named place of if the named place of

FCA FREE CARRIER

FCA FREE CARRIER

Building Works or Warehouse Port of

FCA FREE CARRIER

FCA 1: Place of delivery: 828 Su FCA 2: Place of delivery: Tan Son

FCA FREE CARRIER – GROUP WORK (7MINS)

FCA FREE CARRIER

Obligations FCA 1 FCA 2

1 Checking + packaging + marking

CPT CARRIAGE PAID TO

CPT CARRIAGE PAID TO:

CPT & FCA:

LOOK AT THE TWO PICTURES AND IDENTIFY THE

CPT CARRIAGE PAID TO

FCA & CPT – GROUP WORK (5MINS)

CIP CARRIAGE AND INSURANCE PAID TO:

CIP CARRIAGE AND INSURANCE PAID TO

CPT - INCOTERMS ® 2020

2 Loading on means of transport at seller’s premises

WHAT LOSSES PEOPLE OR BUSINESES CAN INSURE AGAINST?

Fire/Explosio Vessel Earthquakes