X Seller, Buyer, ... in international trade activities need to learn about important conditions in Incoterm 2010?
X You wonder about the role and importance of Incoterm 2010 in international trade activities?
x You want to understand what the concept of Incoterm 2010 means?
Join Proship.vn, we find out how many conditions Incoterm 2010 have and the 2010 version of Incoterm plays an important role, each condition is attached to what regulations, ... right after here to quickly answer all questions to ask questions Out above.
What is the concept of Incoterms, Incoterms 2010?
Incoterms (International Commercial Terms) is an International Chamber of Commerce (ICC) to outline international trade terms through determining your responsibilities and obligations. Sell, buyers in international goods trading contracts.
What is the 2010 Incoterm? Incoterms 2010 is a set of rules amended and drafted in 2010, including 11 terms. Each terms specifically defined the responsibilities of delivery, payment and insurance during the transport of goods from the seller to the buyer.
The conditions specified in Incoterms 2010
Want to know how many conditions Incoterm 2010 have, let's update the following content: let's update the following content:
CIP condition
CIP (Carriage and Insurance Paid to) is the insurance premium to the destination, which is an Incoterm condition, in which the seller is responsible for delivery to the location agreed in the buyer's country and must pay the cost of transportation. This transfer.
But according to the CIP principle, the risk of the seller will end when they have ordered on board, at the starting point of the shipment.
CIF condition
CIF (Cost, Insurance and Freight) are money, insurance premiums and charges are specified for shipping. Under the CIF conditions, the seller is responsible for the cost and charge to bring goods to the destination port designated by the buyer.
CPT conditions
CPT (Carriage Paid To) is a rule on the incoming fee, which requires the seller to deliver goods to transport at a specific location. The seller must pay the freight to bring the goods to an agreed destination.
The seller is also responsible for goods insurance during transportation to the destination. The responsibility of the semi -finalist when the goods are delivered to transport at the agreement location.
CAFR conditions
CFR (Cost and Freight) is the money and charge, meaning the seller pays the freight to the destination port. Risks are transferred to buyers when goods are arranged on train in exporting countries.
DAP condition
DAP (Delivered At Place) is a rule of delivery at the destination, the seller is responsible for all costs and risks related to delivery to the final agreed location.
DAP rules are used when buyers want to control the recovery of goods and import procedures at specific destinations. Meanwhile, the seller is responsible for delivery to that point.
DAT conditions
Dat (Delivered at Terminal) is the delivery rule at the wharf, the seller delivered to the wharf at the location that the seller and the buyer have agreed earlier, it may be the hub for road or port transport.
According to the land rule, the seller is responsible for transporting goods to the port to the destination and must pay the freight to this port. DAT is used when buyers want to control the recovery of goods and import procedures at the port to the destination.
DDP condition
DDP (Delivered Duty Paid) is delivered at the target of taxpayers, the seller is responsible for delivery to the designated location in the buyer of the buyer and pays all expenses to bring goods to the destination including tax and import tax. . In DDP, the seller is not responsible for unloading.
EXW condition
EXW (EX Works) is the rule of delivery at the factory that the seller's responsibility is to bring goods ready at their workshop or other positions specified in advance.
Meanwhile, buyers want to completely control and take responsibility for every aspect of this process:
- Buyers are subject to costs and risks from the time the goods leave the seller's workshop;
- Buyers pay and arrange for the transport of goods from the seller's workshop to their destination points;
- Buyers must handle all procedures for export and import and take responsibility for insurance and related documents.
FAS conditions
FAS (Free Alongside Ship) is a delivery along the side of the ship that the seller delivers goods when the goods are located along the board of the buyer at the goods loaded in advance.
FAS rules are used when goods are transported by sea and buyers want to control the loading of the ship and ensure that the goods are ready to be loaded onto the ship at the starting port.
But FAS is not responsible for transporting to the buyer's destination. Therefore, the costs and responsibilities after the goods were located next to the ship at the starting port belonged to the buyer.
FCA condition
FCA (Free Carrier) is a delivery to the carrier, a rule that requires the seller to carry out customs clearance for export and delivery to the buyer at the seller's facility or delivery to the buyer at the location Other determination.
FCA is not a mandatory term in international trade activities. Accordingly, the seller is not required to carry out customs clearance and pay import tax to the shipment.
FOB conditions
FOB (Free on Board) is delivery on the ship that the seller is responsible for delivering on the train. The risk is transferred immediately after the goods are located on the train.
From the time the goods have been placed on the deck, the buyer is responsible for taking over the goods, goods insurance, export customs procedures, international transport fees and all expenses and risks. concerned about the goods.
How does Incoterms play an important role?
As above, you have understood what Incoterm 2010 is and how many conditions Incoterm 2010 have. So how the importance of Incoterm 2010 is like, the seller, the buyer, ... do you know?
Incoterms 2010 is of great importance in international trade and commodity transactions. It plays an important role in identifying and reviewing international trade terms between buyers and sellers. Thereby, helping to optimize performance and reduce risks for stakeholders.
11 Terms specified in Incoterms 2010 are applied to the two main groups that Proship recorded, including:
- Group 1: Incoterms conditions and rules apply to all transport methods: EXW, FCA, CIP, CPT, DAT, DAP and DDP.
- Group 2: Incoterms rules apply specifically for the field of shipping and inland waterways: FAS, FOB, CFR and CIF.
Above are answers to questions about Incoterm 2010 how many conditions , what Incoterm 2010 is, the importance of Incoterm 2010. From here, individuals, businesses, sellers, buyers, ... when participating in international trade activities and any problems can be saved, applied to the prescribed conditions. And when you need to use multimodal transportation services at Proship, contact 0909 344 247 .
