INCOTERMS - INTERNATIONAL PAYMENT TERMS

INCOTERMS International trade, export, import transactions, simple and clear rules between different countries, which take place in differ...

INCOTERMS

International trade, export, import transactions, simple and clear rules between different countries, which take place in different geographies, require a common language to minimize conflict. At this point, can delivery forms Şek and “payment methods Şek are the most crucial issues.

Incoterms and 11 different types of delivery, with the choice of exporters and importers of the terminology presented to the use of companies. It offers clear rules for the transportation of goods, handover, distribution of risks.

News: New incoterms announced at the beginning of 2020, please check our up to date Blogpost: INCOTERMS 2020 DETAILED GUIDE

Incoterms History

In 1936, for the first time in Paris, the International Chamber of Commerce (ICC) published a series of international rules under the name Incoterms 1936 (INternational Commercial TERMS). Over time, requests from ICC members, experience during the trading phase, and the way trade changed, Incoterms were revised. According to this, the incoterms were revised in 1963, 1967, 1976, 1980, 1990, and 2000 and finally on 27.09.2010. The current version is called to Incoterms 2010 

Incoterms 2010 version of DAF, DES, DEQ, DDU submission forms canceled, instead; DAT over Delivered At Terminal At and DAP ”Delivered At Place At delivery methods are added.

INCOTERMS 2010: CLASSIFICATION ACCORDING TO DELIVERY POINT

Incoterms In 2010, there are 11 different delivery methods in four basic groups determined by the delivery point.

	INCOTERMS 2010 – Basic Terms
E Group	EXW Ex Works (for detailed information just click the link)
F Group	FCA Free Carrier (for detailed information just click the link)  FOB Free On Board (for detailed information just click the link)  FAS Free Alongside Ship (for detailed information just click the link)
C Group	CFR Cost and Freight (for detailed information just click the link)   CIF Cost, Insurance and Freight (for detailed information just click the link)   CPT Carriage Paid To (for detailed information just click the link)   CIP Carriage and Insurance Paid to (for detailed information just click the link)
D Group	DAP Delivered At Place  (for detailed information just click the link)   DAT Delivered At Terminal (for detailed information just click the link)   DDP Delivered Duty Paid (for detailed information just click the link)

Incoterms 2010 Responsibilities and Risks

Buyers and sellers using one of CCI's Incoterms on contracts or invoices determine the extent to which the shipment and insurance are the responsibility and at what point the responsibilities of the buyer and the seller will begin and end. 

For example, if the buyer and seller agree to the FOB delivery term form with a port name in the Seller's country. All responsibility of the cargo and risks will be the buyer's side from the moment it is loaded on the ship. 

In another example, if the buyer accepts the Ex Works invoice, it means he has all responsibility and risks from the moment the freight is loaded into the transport vehicle at the vendor's factory. 

Exporters and Importers are responsible for providing information, documents and documents to the customs, transporter, buyer and seller according to the type of incoterms. 

For example, ExWorks incoterm is the sole obligation of the buyer (importer), after loading the goods mentioned in the invoice to the shipping vehicle. However, the seller (exporter) also responsible for assisting the buyer's customs broker to prepare the necessary documents and send it to them to start customs clearance and insurance policy, on time delivery, the seller also has to give the info about the goods: a number of goods, a number of pallets, weight info to carrier.

Classification of Incoterms by Transport Type

Categories	Incoterms
All transportation vehicles	EXW, FCA, CPT, CIP, DAT*, DAP*, DDP
Only for Seaway	FAS, FOB, CFR, CIF