Umer Abbas
EMBA-F14-063
Nazeer Ahmad
EMBA-F14-026
INCOTERMS : International
Commercial TERMS
Universally
History
Chamber of Commerce
(headquartered in Paris, France)
Introduced in 1936 and updated several times up to
2000
Purpose of Incoterms
Incoterms were first established in 1936 by the
International Chamber of Commerce (ICC) in
Paris, France.
The ICC recognized the need for a standard set
of shipping terms that could be used by
international business people:
International Commerce Terms
Incoterms are intended to be used as a set of
Rules that Sellers and Buyers of goods can use
Purpose of Incoterms
Designed
Scope of Incoterms
Incoterms is limited:
To
primarily
intended for use where goods are sold for delivery across
national boundaries, hence international commercial terms
Can
The Categories
Incoterms
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Ex works
Free carrier
Free alongside ship
Free on board
Cost & freight
Cost, insurance & freight
Carriage paid to
Carriage and insurance paid to
Delivered at frontier
Delivered ex ship
Delivered ex quay
Delivered duty unpaid
Delivered duty paid
Code
EXW
FCA
FAS
FOB
CFR
CIF
CPT
CIP
DAF
DES
DEQ
DDU
DDP
E Terms
F Terms
C Terms
D Terms
Structure
Group
E Departure
EXW Ex Works (.............named place)
Group
FOB
Structure
Group
CFR
D Arrival
The Terms
The E Term is the term in which sellers
obligation is at its minimum
Logistics
Customs Clearance
for Export
2
1
Loading
Preliminary
Transportation
Handling
Outbound
Packing
6
Insurance
Customs
Clearance
Duties
11
Unloading
10
Final
Transportation
Main
International
Transportation
8
Handling
Inbound
E Terms: Departure
EXW (named place)
Export
Clearance
Import
BUYER
Clearance
Goods
PRE -CARRIAGE
Sellers Risk
Sellers Cost
MAIN CARRIAGE
ON-CARRIAGE
EXW = Ex Works
The seller fulfills his obligation to deliver when he has
made the goods available at his premises to the buyer.
The seller is not responsible for loading the goods on
the vehicle provided by the buyer
The seller is not responsible for clearing the goods for
export, unless agreed.
The buyer bears all costs and risks involved in taking
the goods from the sellers premises to the desired
destination
seller
Customs
pre
terminal
carriage
Insurance
terminal
Buyer
Customs
carriage
On
seller
Customs
pre
terminal
carriage
Insurance
terminal
Buyer
Customs
carriage
On
pre
terminal
carriage
Insurance
terminal
Buyer
Customs
carriage
On
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