|
The
International Chamber of Commerce created Incoterms as a worldwide standard to
be used in contracts of sale for expressing the rights and obligations of buyers
and sellers – specifically, regarding the delivery of the goods. The list is
in order of seller's obligation, from least to most. Some Incoterms are valid
for any mode of transport, some for ocean only (see box).
Incoterms are the
internationally accepted definitions for terms of sale legislated by the
International Chamber of Commerce (ICC). It is vital that Egyptian exporters are
familiar with these terms, as they identify the precise moment when ownership of
goods passes from seller to buyer. Incoterms further assign each party their
respective performance responsibilities, elements of cost, and risks. The
inclusion of Incoterms in a sales agreement commits the buyer and seller to a
strict interpretation of these standard definitions. Note that the following
terms must designate a place or port to be valid.
The seller’s only
responsibility is to make the goods available at his premises in a condition
prepared for export. The seller is not responsible for loading the goods in the
vehicle provided by the buyer, unless otherwise agreed. The buyer bears the full
cost and risk involved in bringing the goods from there to the desired
destination. 
The seller’s obligations
are fulfilled when the goods have been placed alongside the ship on the quay
(wharf). The buyer bears all costs and risks of loss or damage to the goods from
that moment. Unlike FOB, FAS requires the buyer to clear the goods for export.
The goods
are placed on board a ship by the seller at a port of shipment named in
the sales contract. The risk of loss or damage to the goods is transferred
from the seller to the buyer when the goods pass the ship’s rail during
loading. This term only applies to transportation by sea or inland waterway
only.
The seller must pay the
costs freight necessary to bring the goods to the named destination, but the
risk of loss or damage, as well as any cost increases, is transferred from the
seller to the buyer when the goods pass the ship’s rail in the port of
shipment. Applicable for sea or inland waterway transport only.
This term has the same
meaning as CFR, but with the addition that the seller has to procure marine
insurance against the risk of loss or damage to the goods during carriage. The
seller pays the insurance premium.
The seller makes the goods
available to the buyer on board the ship at the destination named in the sales
contract. The seller bears the full cost and risk involved in bringing the goods
there.
This
term means that the seller must deliver the goods to the buyer on the
quay (wharf) at the named port of destination, cleared for importation.
The seller has to bear all risks and costs including duties, taxes and
other charges for delivering the goods. This term should not be used if
the seller is unable to obtain the import license. If the buyer is the
party who will clear the goods for importation and pay the duty, then
the term is changed to "DUTY UNPAID". This term applies to sea
or inland waterway transport.
DDU means that the seller
makes the goods available to the buyer at the named place (e.g. door) in the
country of importation. The seller has to pay the costs and bear the risks
involved in bringing the goods to that point as well as the costs and risks of
carrying out customs formalities. However, the buyer must obtain the import
license and pay the actual duties, taxes and official charges payable upon
importation. This term may be used irrespective of the mode of transport.
While the term "EX-WORKS" signifies the seller’s minimum obligation, DDP, when
followed by the buyer’s location in the destination country, denotes the
seller’s maximum obligation. The seller provides the import license and is
responsible for delivery, import duties, taxes, other import-related charges.
This term may be used irrespective of the mode of transport.
This term has
been designed to meet the requirements of modern transport, particularly
such "multimodal" transport as container or "Roll on /
Roll off" traffic by trailers and ferries as well as carriage by
air. FCA is based on the same principle as FOB except that the seller
fulfills his or her obligation when goods are delivered into the custody
of the carrier at the named point. If no precise point can be mentioned
at the time of the contract of sale, the parties should refer to the place
or range where the carrier should take goods into his charge. The risk
of the loss or damage to the goods is transferred from the seller to the
buyer at that time and not at the ship’s rail. "Carrier" means
a person by whom or in whose name a contract of carriage by road, rail,
air, sea or a combination of modes has been made.
Like CFR, CPT means that the
seller pays the freight for the carriage of the goods to the named destination.
However, the risk of loss or damage to the goods, as well as any cost increases,
it transferred from the seller to the buyer when the goods have been delivered
into the custody of the first carrier and not at the ship’s rail. It can be
used for all modes of transportation.
CIP
- CARRIAGE AND INSURANCE PAID TO
This term is the same as "Carriage Paid to-" but with the addition that the seller has to
procure transport insurance against the risk of loss or damage to the goods
during the carriage. The seller pays the insurance premium.
DAF means that the
seller’s obligations are fulfilled when the goods have arrived at the
frontier, but before the "customs border" of the country named in the
sales contract. The term may be used for any frontier including that of the
country of export. Therefore, it is important that the frontier be defined
precisely by naming the point and place in the term. The term is primarily
intended to be used when goods are to be carried by rail or over the road, but
it may be used irrespective of the mode of transport.
Cost
and Freight...
(named port of destination)
CFR (C&F)
"Cost and
Freight" means that the seller 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, as well as any additional costs due to events occurring
after the time the goods have been delivered on board the vessel is transferred
from the seller to the buyer when the goods pass the ship's rail in the port of
shipment.
The CFR term
requires the seller to clear the goods for export.
This term can
only be used for sea and inland waterway transport. When the ship's rail serves
no practical purpose, such as in the case of roll-on/roll-off or container
traffic, the CPT term is more appropriate to use.
A. The seller must
A.1. Provision
of goods in conformity with the contract
Provide the
goods and the commercial invoice, or its equivalent electronic message, in
conformity with the contract of sale and any other evidence of conformity which
may be required by the contract.
A.2. Licences,
authorisations and formalities
Obtain at his
own risk and expense any export licence or other official authorisation and
carry out all customs formalities necessary for the exportation of the goods.
A.3. Contract
of carriage and insurance
a) Contract of
carriage
Contract on
usual terms at his own expense for the carriage of the goods to the named port
of destination by the usual route in a seagoing vessel (or inland waterway
vessel as appropriate) of the type normally used for the transport of goods of
the contract description.
b) Contract of
insurance
No obligation.
A.4. Delivery
Deliver the
goods on board the vessel at the port of shipment on the date or with the period
stipulated.
A.5. Transfer
of risks
Subject to the
provisions of B.5. bear all risks of loss of damage to the goods until such time
as they have passed the ship's rail at the port of shipment.
A.6. Division
of costs
Subject to the
provisions of B.6.
- pay the
freight and all other costs resulting from A.3.a), as well as costs of loading
the goods on board and any charges for unloading at the port of discharge which
may be levied by regular shipping lines when contracting for carriage;
- pay the costs
of customs formalities necessary for exportation as well as all duties, taxes
and other official charges payable upon exportation.
A.7. Notice to the buyer
Give the buyer
sufficient notice that the goods have been delivered on board the vessel as well
as any other notice required in order to allow the buyer to take measures which
are normally necessary to enable him to take the goods.
A.8. Proof of
delivery transport document or equivalent electronic message
Unless
otherwise agreed, at his own expense provide the buyer without delay with the
usual transport document for the agreed port of destination.
This document
(for example, a negotiable bill of lading, a non-negotiable sea waybill or an
inland waterway document) must cover the contract goods, be dated within the
period agreed for shipment, enable the buyer to claim the goods from the carrier
at destination and, unless otherwise agreed, enable the buyer to sell the goods
in transit by the transfer of the document to a subsequent buyer (the negotiable
bill of lading) or by notification to the carrier. When such a transport
document is issued in several originals, a full set of originals must be
presented to the buyer. If the transport document contains a reference to a
charter party, the seller must also provide a copy of this latter document.
Where the
seller and the buyer have agreed to communicate electronically, the document
referred to in the preceding paragraphs may be replaced by an equivalent
electronic data interchange(EDI) message.
A.9. Checking-packaging-marking
Pay the costs
of those checking operations (such as checking quality, measuring, weighing,
counting) which are necessary for the purpose of delivering the goods in
accordance with A.4.
Provide at his
own expense packaging (unless it is usual for the particular trade to ship the
goods of the contract description unpacked) which is required for the transport
of the goods arranged by him. Packaging is to be marked appropriately.
A.10. Other
obligations
Render the
buyer at the latter's request, risk and expense, every assistance in obtaining
any documents or equivalent electronic messages (other than those mentioned in
A.8.) issued or transmitted in the country of shipment and/or of origin which
the buyer may require for the importation of the goods and, where necessary, for
their transit through another country.
Provide the
buyer, upon request, with the necessary information for procuring insurance.
B. The buyer must
B.1. Payment
of the price
Pay the price
as provided in the contract of sale.
B.2. Licences,
authorisations and formalities
Obtain at his
own risk and expense any import licence or other official authorisation and
carry out all customs formalities for the importation of the goods and, where
necessary for their transit through another country.
B.3. Contract
of carriage
No obligation.
B.4. Taking
delivery
Receive the goods at the named port of destination.
B.5. Transfer of risks
Bear all risks of loss of or damage to the goods from the time they have passed the ship's rail at the port shipment.
Should he fail to give notice in accordance with B.7., bear all risks of loss of or damage to the goods from the expiry date of the period fixed for shipment provide, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
B.6. Division of Costs
Subject to the provisions of A.3.a), pay all costs relating to the goods from the time they have been delivered in accordance with A.4. and, unless such costs and charges have been levied by regular shipping lines when contracting for carriage, pay all costs and charges relating to the goods whilst in transit until their arrival at the port of destination, as well as unloading costs including lighterage and wharfage charges.
Should he fail to give notice in accordance with B.7, pay the additional costs thereby incurred for the goods from the expiry date of the period fixed for shipment provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
Pay all duties, taxes and other official charges as well as the costs of carrying out customs formalities payable upon importation of the goods and, where necessary, for their transit through another country.
B.7. Notice to the seller
Whenever he is entitled to determine the time for shipping the goods and/or the port of destination, give the seller sufficient notice thereof.
B.8. Proof of delivery, transport document or equivalent electronic message
Accept the appropriate delivery order or transport document in accordance with A.8.
B.9. Inspection of goods
Pay, unless otherwise agreed, the costs of pre-shipment inspection except when mandated by the authorities of the country of exportation.
B.10. Other obligations
Pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A.10. and reimburse those incurred by the seller in rendering his assistance in accordance therewith.
Cost, Insurance and Freight...
(named port of destination)
CIF
"Cost, Insurance and Freight" means that the seller has the same obligations as under CFR but with the addition that he has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium.
The buyer should note that under the CIF term the seller is only required to obtain insurance on minimum coverage.
The CIF term requires the seller to clear the goods for export.
This term can only be used for sea and inland waterway transport. When the ship's rail serves no practical purposes such as in the case of roll-on/roll-off or container traffic, the CIP term is more appropriate to use.
A. The seller must
A.1. Provision of goods in conformity with the contract
Provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity which may be required by the contract.
A.2. Licences, authorisations and formalities
Obtain at his own risk and expense any export licence or other official authorisation and carry out all customs formalities necessary for the exportation of the goods.
A.3. Contract of carriage and insurance
a) Contract of carriage
Contract on usual terms at his own expense for the carriage of the goods to the named port of destination by the usual route in a seagoing vessel (or inland waterway vessel as appropriate) of the type normally used for the transport of goods of the contract description.
b) Contract of insurance
Obtain at his own expense cargo insurance as agreed in the contract, that the buyer, or any other person having an insurable interest in the goods, shall be entitled to claim directly from the insurer and provide the buyer with the insurance policy or other evidence of insurance cover.
The insurance shall be contracted with underwriters or an insurance company of good repute and, failing express agreement to the contrary, be in accordance with minimum cover of the Institute Cargo Clauses (Institute of London Underwriters) or similar set of clauses. The duration of insurance cover shall be in accordance with B.5. and B.4. When required by the buyer, the seller shall provide at the buyer's expense war, strikes, riots and civil commotion risk insurances if procurable. The minimum insurance shall cover the price provided in the contract plus ten per cent (i.e. 100%) and shall be provided in the currency of the contract.
A.4. Delivery
Deliver the goods on board the vessel at the port of shipment on the date or within the period stipulated.
A.5. Transfer of risks
Subject to the provisions of B.5., bear all risks of loss of or damage to the goods until such time as they have passed the ship's rail at the port of shipment.
A.6. Division of Costs
Subject to the provisions of B.6.
- pay the freight and all other costs resulting from A.3., as well as costs of loading the goods on board and any charges for unloading at the port or discharge which may be levied by regular shipping lines when contracting for carriage :
- pay the costs of customs formalities necessary for exportation as well as duties, taxes and other official charges payable upon exportation.
A.7. Notice to the buyer
Give the buyer sufficient notice that the goods have been delivered on board the vessel as well as any other notice required in order to allow the buyer to make measures which are normally necessary to enable him to take the goods.
A.8. Proof of delivery, transport document or equivalent electronic message
Unless otherwise agreed, at his own expense provide the buyer without delay with the usual transport document for the agreed port of destination.
This document (for example, a negotiable bill of lading, a non-negotiable sea waybill or an inland waterway document) must cover the contract goods, be dated within the period agreed for shipment, enable the buyer to claim the goods from the carrier at destination and, unless otherwise agreed, enable the buyer to sell the goods in transit by the transfer of the document to a subsequent buyer (the negotiable bill of lading) or by notification to the carrier.
When such a transport document is issued in several originals, a full set of originals must be presented to the buyer. If the transport document contains a reference to a charter party, the seller must also provide a copy of this latter document.
Where the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraphs may be replaced by an equivalent electronic data interchange(EDI) message.
A.9. Checking-packaging-marking
Pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A.4.
Provide at his own expense packaging (unless it is usual for the particular trade to ship the goods of the contract description unpacked) which is required for the transport of the goods arranged by him. Packaging is to be marked appropriately.
A.10. Other obligations
Render the buyer at the latter's request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A.8.) issued or transmitted in the country of shipment and/or of origin which the buyer may require for the importation of the goods and, where necessary, for their transit through another country.
B. The buyer must
B.1. Payment of the price
Pay the price as provided in the contract of sale.
B.2. Licences, authorisations and formalities
Obtain at his own risk and expense any import licence or other official authorisation and carry out all customs formalities for the importation of the goods and, where necessary, for their transit through another country.
B.3. Contract of carriage
No obligation
B.4. Taking delivery
Receive the goods at the named port of destination.
B.5. Transfer of risks
Bear all risks of loss of or damage to the goods from the time they have passed the ship's rail at the port of shipment.
Should he fail to give notice in accordance with B.7., bear all risks of loss of or damage to the goods from the expiry date of the period fixed for shipment provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
B.6. Division of costs
Subject to the provisions of A.3., pay all costs relating to the goods from the time they have been delivered in accordance with A.4. and, unless such costs and charges have been levied by regular shipping lines when contracting for carriage, pay all costs and charges relating to the goods whilst in transit until their arrival at the port of destination, as well as unloading costs including lighterage and wharfage charges.
Should he fail to give notice in accordance with B.7., pay the additional costs thereby incurred for the goods from the expiry date of the period fixed for shipment provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
Pay all duties, taxes and other official charges as well as the costs of carrying out customs formalities payables upon importation of the goods and where necessary, for their transit through another country.
B.7. Notice to the seller
Whenever he is entitled to determine the time for shipping the goods and/or the port of destination, give the seller sufficient notice thereof.
B.8. Proof of delivery, transport document or equivalent electronic message
Accept the transport document in accordance with A.8. if it is in conformity with the contract.
B.9. Inspection of goods
Pay, unless otherwise agreed, the costs of pre-shipment inspection except when mandated by the authorities of the country of exportation.
B.10. Other obligations
Pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A.10 and reimburse those incurred by the seller in rendering his assistance in accordance therewith.
Provide the seller, upon request, with the necessary information for procuring insurance.
Carriage Paid to...
(named place of destination)
CPT
"Carriage paid to..." means that the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier.
"Carrier" means any person who, in a contract of carriage, undertakes to perform or to procure the performance of carriage, by rail, road, sea, air, inland waterway or by a combination of such modes.
If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.
The CPT term requires the seller to clear the goods for export.
This term may be used for any mode of transport including multimodal transport.
A. The seller must
A.1 Provision of goods in conformity with the contract
Provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity which may be required by the contract.
A.2. Licences, authorisations and formalities
Obtain at his own risk and expense any export licence or other official authorisation and carry out all customs formalities necessary for the exportation of the goods.
A.3. Contract of carriage and insurance
a) Contract of carriage
Contract on usual terms at his own expense for the carriage of the goods to the agreed point at the named place of destination by a usual route and in a customary manner. If a point is not agreed or is not determined by practice, the seller may select the point at the named place of destination which best suits his purpose.
b) Contract of insurance
No obligation
A.4. Delivery
Deliver the goods into the custody of the carrier or, if there are subsequent carriers, to the first carrier, for transportation to the named place of destination on the date or within the period stipulated.
A.5. Transfer of risks
Subject to the provisions of B.5., bear all risks of loss of or damage to the goods until such time as they have been delivered in accordance with A.4.
A.6. Division of Costs
Subject to the provisions of B.6.
- pay the freight and all other costs resulting from A.3.a), as well as costs of loading the goods and any charges for unloading at the place of destination which may be included in the freight or incurred by the seller when contracting for carriage ;
- pay the costs of customs formalities necessary for exportation as well as all duties, taxes or other official charges payable upon exportation.
A.7. Notice to the buyer
Give the buyer sufficient notice that the goods have been delivered in accordance with A.4. as well as any other notice required in order to allow the buyer to take measures which are normally necessary to enable him to take the goods.
A.8. Proof of delivery, transport document or equivalent electronic message
Provide the buyer at the seller's expense, if customary, with the usual transport document (for example, a negotiable bill of lading, a non-negotiable sea waybill, an inland waterway document, an air waybill, a railway consignment note, a road consignment note, or a multimodal transport document).
Where the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraph may be replaced by an equivalent electronic date interchange(EDI) message.
A.9. Checking-packaging-marking
Pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A.4.
Provide at his own expense packaging (unless it is usual for the particular trade to send the goods of the contract description unpacked) which is required for the transport of the goods arranged by him. Packaging is to be marked appropriately.
A.10. Other obligations
Render the buyer at the latter's request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A.8.) issued or transmitted in the country of dispatch and/or origin which the buyer may require for the importation of the goods and, where necessary, for their transit through another country.
Provide the buyer, upon request, with the necessary information for procuring insurance.
B. The buyer must
B.1. Payment of the price
Pay the price as provided in the contract of sale.
B.2. Licences, authorisations and formalities
Obtain at his own risk and expense any import licence or other official1 authorisation and carry out all customs formalities for the importation of the goods and, where necessary, for their transit through another country.
B.3. Contract of carriage
No obligation
B.4. Taking delivery
Take delivery of the goods in accordance with A.4.
B.5. Transfer of risks
Bear all risks of loss of or damage to the goods from the time they have been delivered in accordance with A.4.
Should he fail to fulfil his obligations in accordance with B.2., bear all additional risks of loss of or damage to the goods incurred thereby and should he fail to give notice in accordance with B.7., or should the vessel named by him fail to arrive on time, or be unable to take the goods, or close for cargo earlier than the stipulated time, bear all risks of loss of or damage to the goods from the agreed date or the expiry date of the period stipulated for delivery provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
B.6. Division of costs
Pay all costs relating to the goods from the time they have been delivered in accordance with A.4.
Pay any additional costs incurred, either because the vessel named by him has failed to arrive on time, or will be unable to take the goods, or will close for cargo earlier than the stipulated time, or because the buyer has failed to fulfil his obligations in accordance with B.2., or to give appropriate notice in accordance with B.7. provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
Pay all duties, taxes and other official charges as well as the costs of carrying out customs formalities payable upon exportation and importation of the goods and, where necessary, for their transit through another country.
Pay all costs and charges incurred by the seller in rendering assistance in accordance with A.2.
B.7. Notice to the seller
Whenever he is entitled to determine the time for dispatching the goods and/or destination, give the seller sufficient notice thereof.
B.8. Proof of delivery, transport document or equivalent electronic message
Accept the transport document in accordance with A.8. if it is in conformity with contract.
B.9. Inspection of goods
Pay, unless otherwise agreed, the costs of pre-shipment inspection except with mandated by the authorities of the country of exportation.
B.10. Other obligations
Pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A.l0. and reimburse those incurred by the seller in render his assistance in accordance therewith.
Delivered at Frontier...
(named place)
DAF
"Delivered at Frontier" means that the seller fulfils his obligation to deliver when the goods have been made available, cleared for export, at the named point and place at the frontier, but before the customs border of the adjoining country. The term "frontier" may be used for any frontier including that of the country of export. Therefore, it is of vital importance that the frontier in question be defined precisely by always naming the point and place in the term.
The term is primarily intended to be used when goods are to be carried by rail or road, but it may be used for any mode of transport.
A. The seller must
A.1. Provision of goods in conformity with the contract
Provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity which may be required by the contract.
A.2. Licences, authorisations and formalities
Obtain at his own risk and expense any export licence or other official authorisation or other document necessary for placing the goods at the buyer's disposal. Carry out all customs formalities for the exportation of the goods to the named place of delivery at the frontier and, where necessary, for the prior transit through another country.
A.3. Contract of carriage and insurance
a) Contract of carriage
Contract at his own expense for the carriage of the goods by a usual route and in a customary manner to the named point at the place of delivery at the frontier (including, if necessary, for their transit through another country).
If a point at the named place of delivery at the frontier is not agreed or is not determined by practice, the seller may select the point at the named place of delivery which best suits his purpose.
b) Contract of insurance
No obligation.
A.4. Delivery
Place the goods at the disposal of the buyer at the named place of delivery at the frontier on the date or within the period stipulated.
A.5. Transfer of risks
Subject to the provisions of B.5., bear all risks of loss of or damage to the goods until such time as they have been delivered in accordance with A.4.
A.6. Division of costs
Subject to the provisions of B.6.
- in addition to costs resulting from A.3.a), pay the expenses of discharge operations (including lighterage and handling charges), if it is necessary or customary for the goods to be discharged on their arrival at the named place of delivery at the frontier, in order to place them at the buyer's disposal ;
- pay the costs of customs formalities necessary for exportation as well as all duties, taxes or other official charges payable upon exportation and, where necessary, for their transit through another country.
A.7. Notice to the buyer
Give the buyer sufficient notice of the dispatch of the goods to the named place at the frontier as well as any other notice required in order to allow the buyer to take measures which are normally necessary to enable him to take the goods.
A.8. Proof of delivery, transport document or equivalent electronic message
Provide the buyer at the seller's expense with the usual document or other evidence of the delivery of the goods at the named place at the frontier.
Provide the buyer at the latter's request, risk and expense, with a through document of transport normally obtained in the country of dispatch covering on usual terms the transport of the goods from the point of dispatch in that country to the place of final destination in the country of importation named by the buyer.
Where the seller and buyer have agreed to communicate electronically, the document referred to in the preceding paragraph may be replaced by an equivalent electronic data interchange(EDI) message.
A.9. Checking-packaging-marking
Pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A.4,
Provide at his own expense packaging (unless it is usual for the particular trade to deliver the goods of the contract description unpacked) which is required for the delivery of the goods at the frontier and for the subsequent transport to the extent that the circumstances (e.g. modalities, destination) are made known to the seller before the contract of sale is concluded. Packaging is to be marked appropriately.
A.10. Other obligations
Render the buyer at the latter's request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A.8.) issued or transmitted in the country of dispatch and/or origin which the buyer may require for the importation of the goods and, where necessary, for their transit through another country.
Provide the buyer upon request, with the necessary information for procuring insurance.
B. The buyer must
B.1. Payment of the price
Pay the price as provided in the contract of sale.
B.2. Licences, authorisations and formalities
Obtain at his own risk and expense any import licence or other official authorisation and carry out all customs formalities at the named point of delivery at the frontier or elsewhere for the importation of the goods and, where necessary, for their subsequent transport.
B.3. Contract of carriage
No obligation.
B.4. Taking delivery
Take delivery of the goods as soon as they have been placed at his disposal in accordance with A.4.
B.5. Transfer of risks
Bear all risks of loss of or damage to the goods from the time they have been placed at his disposal in accordance with A.4., provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
Should he fail to give notice in accordance with B.7., bear all risks of loss of or damage to the goods from the agreed date or the expiry date of the period stipulated for delivery.
B.6. Division of costs
Pay all costs relating to the goods from the time they have been placed at his disposal in accordance with A.4., provided, however, that the goods have been appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
Should he fail to take delivery of the goods when they have been placed at his disposal in accordance with A.4.. or to give notice in accordance with B.7., bear all additional1 costs incurred thereby.
Pay all duties, taxes and other official charges as well as the costs of carrying out customs formalities payable upon importation of the goods and, where necessary, for their subsequent transport.
B.7. Notice. to the seller
Whenever he is entitled to determine the time within a stipulated period and/or the place of taking delivery, give the seller sufficient notice thereof.
B.8. Proof of delivery, transport document or equivalent electronic message
Accept the transport document and/or other evidence of delivery in accordance with A.8.
B.9. Inspection of goods
Pay, unless otherwise agreed, the costs of pre-shipment inspection except when mandated by the authorities of the country of exportation.
B.10. Other obligations
Pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A.l0. and reimburse those incurred by the seller in rendering his assistance in accordance therewith.
If necessary, provide the seller at his request and the buyer's risk and expense with exchange control authorisation, permits, other documents or certified copies thereof or with the address of the final destination of the goods in the country of importation for the purpose of obtaining the through document of transport or any other document contemplated in A.8.
Delivered Duty Paid...
(named place of destination)
DDP
"Delivered duty paid" means that the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation. Whilst the EXW term represents the minimum obligation for the seller, DDP represents the maximum obligation.
This term should not be used if the seller is unable directly or indirectly lo obtain the import licence.
If the parties wish the buyer to clear the goods for importation and to pay the duty, the term DDU should be used.
If the parties wish to exclude from the seller's obligations some of the costs payable upon importation of the goods (such as value added tax(VAT)), this should be made clear by adding words to this effect: "Delivered duty paid, VAT unpaid ... (named place of destination)".
This term may be used irrespective of the mode of transport.
A. The seller must
A.1. Provision of the goods in conformity with the contract
Provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity which may be required by the contract.
A.2. Licences, authorisations and formalities
Obtain at his own risk and expense any export and import licence and other official authorisation and carry out all customs formalities for the exportation and importation of the goods and, where necessary. for their transit through another country.
A.3. Contract of carriage and insurance
a) Contract of carriage
Contract at his own expense for the carriage of the goods by a usual route and in a customary manner to the agreed point at the named place of destination. If a point is not agreed or is not determined by practice, the seller may select the point at the named place of destination which best suits his purpose.
b) Contract of insurance
No obligation.
A.4. Delivery
Place the goods at the disposal of the buyer in accordance with A.3. on the date or within the period stipulated.
A.5. Transfer of risks
Subject to the provisions of B.5., bear all risks of loss of or damage to the goods until such time as they have been delivered in accordance with A.4.
A.6. Division of costs
Subject to the provisions of B.6.
- in addition to costs resulting from A.3.a), pay all costs relating to the goods until such time as they have been delivered in accordance with A.4.;
- pay the costs of customs formalities as well as all duties, taxes and other official charges payable upon exportation and importation of the goods, unless otherwise agreed and, where necessary, their transit through another country.
A.7. Notice to the buyer
Give the buyer sufficient notice of the dispatch of the goods as well as any other notice required in order to allow the buyer to take measures which are normally necessary to enable him to take the goods.
A.8. Proof of delivery transport document or equivalent electronic message
Provide the buyer at the seller's expense with the delivery order and/or the usual transport document (for example, a negotiable bill of lading, a non-negotiable sea waybill an inland waterway document, and air waybill, a railway consignment note a road consignment note, or a multimodal transport document) which the buyer may require to take the goods.
Where the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraph may be replaced by an equivalent electronic data interchange(EDI) message.
A.9. Checking -packaging-marking
Pay the costs of those checking operations (such as checking quality, measuring weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A.4.
Provide at his own expense packaging (unless it is usual for the particular trade to deliver the goods of the contract description unpacked) which is required for the delivery of the goods. Packaging is to be marked appropriately.
A.10. Other obligations
Pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in B.10. and reimburse those incurred by the buyer in rendering his assistance therewith.
B. The buyer must
B.1. Payment of the price
Pay the price as provided in the contract of sale.
B.2. Licences, authorisations and formalities
Render the seller at the latter's request, risk and expense every assistance in obtaining any import licence and other official authorisation necessary for the importation of the goods.
B.3. Contract of carriage
No obligation.
B.4. Taking delivery
Take delivery of the goods as soon as they have been placed at his disposal in accordance with A.4.
B.5. Transfer of risks
Bear all risks of loss of or damage to the goods from the time they have been placed at his disposal in accordance with A.4., provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
Should he fail to give notice in accordance with B.7., bear all risks of loss of or damage to the goods from the agreed date or the expiry date of the period stipulated for delivery.
B.6. Division of costs
Pay all costs relating to the goods from the time they have been placed at his disposal in accordance with A.4., provided, however, that the goods have been appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
Should he fail to take delivery of the goods when they have been placed at his disposal in accordance with A.4., or to give notice in accordance with B.7., bear all additionall costs incurred thereby.
B.7. Notice to the seller
Whenever he is entitled to determine the time within a stipulated period and/or the place of taking delivery, give the seller sufficient notice thereof.
B.8. Proof of delivery transport document or equivalent electronic message
Accept the appropriate delivery order or transport document in accordance with A.8.
B.9. Inspection of goods
Pay, unless otherwise agreed, the costs of pre-shipment inspection except when mandated by the authorities of the country of exportation.
B.10. Other obligations
Render the seller, at his request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages issued or transmitted in the country of importation which the seller may require for the purpose of placing the goods at the disposal of the buyer in accordance with these rule.
Delivered Duty Unpaid...
(named place of destination )
DDU
"Delivered duty unpaid" means that the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties, taxes and other official charges payable upon importation) as well as the costs and risks of carrying out customs formalities. The buyer has to pay any additional costs and to bear any risks caused by his failure to clear the goods for import in time.
If the parties wish the seller to carry out customs formalities and bear the costs and risks resulting therefrom, this has to be made clear by adding words to this effect.
If the parties wish to include in the seller's obligations some of the costs payable upon importation of the goods (such as value added tax(VAT)), this should be made clear by adding words to this effect: "Delivered duty unpaid, VAT paid, ... (named place of destination)".
This term may be used irrespective of the mode of transport.
A. The seller must
A.1. Provision of the goods in conformity with the contract
Provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity which may be required by the contract.
A.2. Licences, authorisations and formalities
Obtain at his own risk and expense any export licence and other official authorisation and carry out all customs formalities for the exportation of the goods and, where necessary, for their transit through another country.
A.3. Contract of carriage and insurance
a) Contract of carriage
Contract on usual terms at his own expense for the carriage of the goods by a usual route and in the customary manner to the agreed point at the named place of destination.
If a point is not agreed or is not determined by practice, the seller may select the point at the named place of destination which best suits his purpose.
b) Contract of insurance
No obligation
A.4. Delivery
Place the goods at the disposal of the buyer in accordance with A.3. on the date or within the period stipulated.
A.5. Transfer of risks
Subject to the provisions of B.5., bear all risks of loss of or damage to the goods until such time as they have been delivered in accordance with A.4.
A.6. Division of Costs
Subject to the provisions of B.6.
- in addition to costs resulting from A.3.a), pay all costs relating to the goods until such time as they have been delivered in accordance with A.4.;
- pay the costs of customs formalities necessary for exportation as well as all duties, taxes and other official charges payable upon exportation and, where necessary, for their transit through another country.
A.7. Notice to the buyer
Give the buyer sufficient notice of the dispatch of the goods as well as any other notice required in order to allow the buyer to take measures which are normally necessary to enable him to take the goods.
A.8. Proof of delivery transport document or equivalent electronic message
Provide at his own expense the delivery order and/or the usual transport document (for example a negotiable bill of lading, a non-negotiable sea waybill, an inland waterway document, an air waybill, a railway consignment note, a road consignment note, or a multimodal transport document) which the buyer may require to take delivery of the goods.
Where the seller and the buyer have agreed to communicate electronically the document referred to in the preceding paragraph may be replaced by an equivalent electronic data interchange(EDI) message.
A.9. Checking-packaging-marking
Pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A.4.
Provide at his own expense packaging (unless it is usual for the particular trade to deliver the goods of the contract description unpacked) which is required for the delivery of the goods. Packaging is to be marked appropriately.
A.10. Other obligations
Render the buyer at the latter's request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A.8.) issued or transmitted in the country of dispatch and/or of origin which the buyer may require for the importation of the goods.
Provide the buyer, upon request, with the necessary information for procuring insurance.
B. The buyer must
B.1. Payment of the price
Pay the price as provided in the contract of sale.
B.2. Licence, authorisations and formalities
Obtain at his own risk and expense any import licence or other official authorisation and carry out all customs formalities necessary for the importation of the goods.
B.3. Contract of carriage
No obligation.
B.4. Taking delivery
Take delivery of the goods as soon as they have been placed at his disposal in accordance with A.4.
B.5. Transfer of risks
Bear all risks of loss of or damage to the goods from the time they have been placed at his disposal in accordance with A.4., provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
Should he fail to fulfil his obligations in accordance with B.2., bear all additional risks of loss of or damage to the goods incurred thereby and should he fail to give notice in accordance with B.7., bear all risks of loss of or damage to the goods from the agreed date or the expiry date of the period stipulated for delivery.
B.6. Division of costs
Pay all costs relating to the goods from the time they have been placed at his disposal at the named point of destination in accordance with A.4., provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
Should he fail to fulfil his obligations in accordance with B.2., or to take delivery of the goods when they have been placed at his disposal in accordance with A.4., or to give notice in accordance with B.7., bear all additional costs incurred thereby.
Pay all duties, taxes and other official charges as well as the costs of carrying out customs formalities payable upon importation of the goods.
B.7. Notice to the seller
Whenever he is entitled to determine the time within a stipulated period and/or the place or taking delivery, give the seller sufficient notice thereof.
B.8. Proof of delivery, transport document or equivalent electronic message
Accept the appropriate delivery order or transport document in accordance with A.8.
B.9. Inspection of goods
Pay, unless otherwise agreed. the costs of pre-shipment inspection except when mandated by the authorities of the country of exportation.
B.10. Other obligations
Pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A.10. and reimburse those incurred by the seller in rendering his assistance in accordance therewith.
Delivered Ex Quay (duty paid)...
(named port of destination)
DEQ
"Delivered Ex Quay (duty paid)" means that the seller fulfils his obligation to deliver when he has made the goods available to the buyer on the quay(wharf) at the named port of destination, cleared for importation. The seller has to bear all risks and costs including duties, taxes and other charges of delivering the goods thereto.
This term should not be used if the seller is unable directly or indirectly to obtain the import licence.
If the parties wish the buyer to clear the goods for importation and pay the duty the word 'duty unpaid' should be used instead of "duty paid".
If the parties wish to exclude from the seller's obligations some of the costs payable upon importation of the goods (such as value added tax(VAT)), this should be made clear by adding words to this effect; "Delivered ex quay, VAT unpaid ...(named port of destination)".
This term can only be used for sea or inland waterway transport.
A. The seller must
A.1. Provision of goods in conformity with the contract
Provide the goods and commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity which may be required by the contract.
A.2. Licences, authorisations and formalities
Obtain at his own risk and expense any export and import licence or other official authorisation and carry out all customs formalities for the exportation and importation of the goods and, where necessary, for their transit through another country.
A.3. Contract of carriage and insurance
a) Contract of carriage
Contract at his own expense for the carriage of the goods by a usual route and in a customary manner to the quay at the named port of destination. If a point is not agreed or is not determined by practice, the seller may select the point at the named port of destination which best suits his purpose.
b) Contract of insurance
No obligation.
A.4. Delivery
Place the goods at the disposal of the buyer on the quay or wharf at the agreed port destination and on the date or within the period stipulated.
A.5. Transfer of risks
Subject to the provisions of B.5., bear all risks of loss of or damage to the goods until such time as they have been delivered in accordance with A.4.
A.6. Division of costs
Subject to the provisions of B.6.
- in addition to costs resulting from A.3.a), pay all costs relating to the goods until such time as they are delivered in accordance with A.4;
- pay the costs of customs formalities as well as all duties, taxes and other official charges payable upon exportation and importation of the goods, unless otherwise agreed and, where necessary, for their transit through another country.
A.7. Notice to the buyer
Give the buyer sufficient notice of the estimated time of arrival of the named vessel1 in accordance with A.4., as well as any other notice required in order to allow the buyer to take measures which are normally necessary to enable him to take the goods.
A.8. Transport document or equivalent electronic message
Provide the buyer at the seller's expense with the delivery order and/or the usual transport document (for example, a negotiable bill of lading, a non-negotiable sea waybill, an inland waterway document or a multimodal transport document) to enable him to take the goods and remove them from the quay.
Where the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraph may be replaced by an equivalent electronic data interchange(EDI) message.
A.9. Checking-packaging-marking
Pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A.4.
Provide at his own expense packaging (unless it is usual for the particular trade to deliver the goods of the contract description unpacked) which is required for the delivery of the goods. Packaging is to be marked appropriately.
A.10. Other obligations
Pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in B.10. and reimburse those incurred by the buyer in rendering his assistance therewith.
Provide the buyer, upon request, with the necessary information for procuring insurance.
B. The buyer must
B.1. Payment of the price
Pay the price as provided in the contract of sale.
B.2. Licences, authorisations and formalities
Render the seller at the latter's request, risk and expense, every assistance in obtaining any import licence or other official authorisation necessary for the importation of the goods.
B.3. Contract of carriage
No obligation.
B.4. Taking delivery
| 
Shipping Information Center
CIP,
DDU, DDP
FAS,
FOB, CFR,
CIF,
DEQ