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4/29/12

Incoterms | international shipping incoterms| shipping Incoterm
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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.

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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.
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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.

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Incoterms | international shipping incoterms| shipping Incoterm If the buyer (importer) nominates a person other than a carrier to receive the goods.. The FAS term requires the seller (exporter) to clear the goods for export.. The CIF term requires the seller (exporter) to clear the goods for export. The buyer (importer) should note that under the CIP term the seller (exporter) is required to obtain insurance only on minimum cover. This term may be used irrespective of the mode of transport including multimodal transport.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. The CFR 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 . undertakes to perform or to procure the performance of transport. sea. If subsequent carriers are used for the carriage to the agreed destination.. Should the buyer (importer) wish to have the protection of greater cover. 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..named place of destination): "Carriage paid to. the CPT term should be used. This means that the buyer (importer) bears all risks and any other costs occurring after the goods have been so delivered..4/29/12 by rail. air. 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. If the parties do not intend to deliver the goods across the ship's rail. sea. 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. Group D (Arrival): 9) DAF . Insurance & Freight (. However.Carriage and Insurance Paid To (.named port of destination): Cost." 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. The buyer (importer) should note that under the CIF term the seller (exporter) is required to obtain insurance only on minimum cover. the risk passes when the goods have been delivered to the first carrier. in a contract of carriage. as well as any additional costs due to events occurring after the time of delivery. This term may be used irrespective of the mode of transport when goods are to be delivered at a land frontier. If the parties do not intend to deliver the goods across the ship's rail..Cost & Freight (. Should the buyer (importer) wish to have the protection of greater cover. road.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. Insurance and Freight means that the seller (exporter) delivers when the goods pass the ship's rail in the port of shipment. if the parties wish the buyer (importer) to clear the goods for export. Therefore. this should be made clear by adding explicit wording to this effect in the contract of sale. The FOB term requires the seller (exporter) to clear the goods for export. However. This term can be used only for sea and inland waterway transport. in a contract of carriage. 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. Consequently. are transferred from the seller (exporter) to the buyer (importer).. This term can be used only for sea or inland waterway transport.Cost. by rail. are transferred from the seller (exporter) to the buyer (importer). Group C (Main carriage paid) 5) CFR .. but not cleared for import at the named point and place at the frontier. The CPT term requires the seller (exporter) to clear the goods for export. sea.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. the CIP term should be used. This term can be used only for sea and inland waterway transport. However. by rail. undertakes to perform or to procure the performance of transport.. road. 6) CIF ... Carrier means any person who. If the parties do not intend to deliver the goods across the ship's rail.aspx 2/4 . When delivery www.. he would either need to agree as much expressly with the seller (exporter) or to make his own extra insurance arrangements. 7) CPT . the FCA term should be used. Consequently.named place of destination): "Carriage and Insurance paid to.. he would either need to agree as much expressly with the seller (exporter) or to make his own extra insurance arrangements. The term "frontier" may be used for any frontier including that of the country of export. inland waterway or by a combination of such modes. This term can be used only for sea or inland waterway transport. road.in/International-Trade-Resources/Incoterms.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. the risk passes when the goods have been delivered to the first carrier.Carriage Paid To (.Free On Board (. This means that the buyer (importer) bears all risks and any additional costs occurring after the goods have been so delivered. This means that the buyer (importer) has to bear all costs and risks of loss of or damage to the goods from that moment. air." 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. However. inland waterway or by a combination of such modes. Carrier means any person who. air. but before the customs border of the adjoining country.. 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 seller (exporter) contracts for insurance and pays the insurance premium.. inland waterway or by a combination of such modes. it is of vital importance that the frontier in question be defined precisely by always naming the point and place in the term. If subsequent carriers are used for the carriage to the agreed destination.Delivered at Frontier (... 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. the seller (exporter) is deemed to have fulfilled his obligation to deliver the goods when they are delivered to that person. this should be made clear by adding explicit wording to this effect in the contract of sale.Free Alongside Ship (. as well as any additional costs due to events occurring after the time of delivery. The CIP term requires the seller (exporter) to clear the goods for export. 4) FOB . 3) FAS . cleared for export. the seller (exporter) contracts for insurance and pays the insurance premium.cybex..

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. Chana Has The Biggest Share Of The Indian Pulses M arket.T.T.T.T. On The Back Of Double-Digit Growth Rate And High Home Trade. thearket.) Whilst the EXW term represents the minimum obligation for the seller (exporter). customs duties. The Industry Keeps The Local Economy On Volumes Indian Custom Data A Still Stronger Footing. (N.. place of destination. 2012 and risks caused by his failure to with effect from 1st M costs clear the goods for import in time.) in or outside the port. this should be made clear by adding explicit File applications for 53 SEZ ports codes -reg.. 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. the DDU or DDP terms should be used..) 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. duties. 2012 [ITC(HS).) Regarding CENVAT credit taken or utilized on the process cutting. the DDU term should be used. 11) DEQ . If the parties wish the seller (exporter) to bear the costs and risks of discharging the goods. where applicable (Refer to Introduction paragraph 14). Now. (N. not cleared for import.T. this should be made clear by adding explicit wording to this effect in the contract of sale. taxes and other Indian Custom Non-Tariff Notification Number 35/2012 – Customs charges) for import in the country of destination. 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). This term should not be used if the seller (exporter) is unable directly or indirectly to obtain the import license. taxes and other charges upon import.aspx 3/4 . However. Central Excise Non-Tariff Notification Number 24/2012 . 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).named port of destination): Delivered duty paid means that the seller (exporter) delivers (N. The seller (exporter) has to bear the costs and risks involved in bringing the goods thereto. Decisions That Cause Significant the buyer (importer) as well as anyay. 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. cleared for import. or DEQ terms should be used. transport station.T.cybex. Incoterms | international shipping incoterms| shipping Incoterm 10) DES .) dated 2nd April. where applicable. Seeks to amend Notification No.E. The seller (exporter) has to bear all the costs and risks involved in bringing the goods to the named port of destination before discharging.12/97-Customs (N.Delivered Ex-Ship (. 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. and not unloaded from any arriving means of transport at In Her First Public Speech After Being Appointed Us Ambassador (N.12/97-Customs (N. Us Envoy Powell Seeks Relook At Tax Issues Indian Custom Non-Tariff Notification Number 38/2012 – (exporter) 12) DDU . 1997 (such as VAT). 77 Cr In of sale. on board a vessel or on the quay (wharf).T. Focusing M ore On Exports The Textile Industry Has Always Been A Key Pillar Of Faridabad's Economy. 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. 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. any "duty" (which term includes the responsibility for and the risks of the carrying out of To India.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 named place of destination. and the payment of formalities.. 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. 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. and not unloaded from any arriving means of transport at the named To goods Data buyer (importer). board the vessel or on the quay (wharf).Delivered Ex-Quay (. Nancy Powell Criticised The Union Government For Rate of exchange of conversion of each of the foreign currency customs formalities.Delivered Duty Unpaid (.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. If the parties wish to include in the seller's obligations all or part of the costs payable upon import of the goods. the DES or DEQ terms should beNon-Tariff Notification Number 36/2012 – Customs Indian Custom used. Traders Estimate The M arket To Remain Steady (N.C.4/29/12 This term may be used irrespective of the mode of transport when goods are to be delivered at a land frontier.) Accordingthe Officialto theReleased Friday.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. other than. etc. 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. customs duties. New the Arrives In The M DES The M arket. The Lok Sabha Was Informed Friday. Higher Exports Due To Lower However.The DEQ term requires the buyer (importer) to clear the goods for import and to pay for all formalities. any "duty" (which term includes the responsibility for and the risk of the carrying out of customs formalities and the payment of formalities. slitting or printing of aluminium foils Faridabad Textile Industry Weave Growth.. this should be made clear by adding explicit wording to this effect in the contract of sale. 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. terminal. Export Of wording to this Productsthe contract Apr-Jan Fy12 Khadi & Village effect in Rs.) dated 2nd Showers In The Producing Areas. When delivery is to take place in the port of destination.Delivered Duty Paid (. And Dampen India’S Investment Climate Sentiment”.. then the DEQ term should be used. 13) DDP . taxes and other charges) for import in the country of “Several Recent Policy Such "duty" has to be borne byConcern destination..in/International-Trade-Resources/Incoterms. 77 Crore In The First Nine M onths Of The Last Fiscal. DDP represents the maximum obligation. if the parties wish to exclude from the seller's obligations some of the costs payable upon import of the goods April.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 DES or DEQ terms should be used.named port of destination): Delivered duty unpaid means that the seller Customs delivers the goods to the buyer (importer). 1997 EXIM NEWS .

4/29/12 Register Now Like 262 Incoterms | international shipping incoterms| shipping Incoterm Custom Notifications | ©C opyright 2010.in (Export262 Import Data Portal) Like Contact Sample | | | Us Data | www.aspx 4/4 .cybex. All rights re se rve d with www.in/International-Trade-Resources/Incoterms.cybex.