X in the international trade contract mentions the conditions, rules and stakeholders need to learn what Incoterms 2020 is?
x You are interested in the conditions and terms of Incoterms 2020?
x You have not known between Incoterms 2020 and Incoterms 2010, what is the difference?
If you want to know what Incoterm 2020 is, let's with Proship.vn we update the knowledge to know about this important set of rules in international trade. At the same time, the stakeholders also easily see the difference between Incoterm 20 2020 compared to what Incoterm 2010 is.
What is the 2020 Incoterm?
Incoterms stipulates the rules of responsibility and price for exporters and imports in international commodity transactions. The rules set in Incoterms are not required, the use of Incoterms depends on the agreement of the two parties in the foreign trade contract.
What is the 2020 Incoterm? As a set of terms/international trade conditions published by the International Chamber of Commerce, effective from January 1, 2020. Incoterm version 2020 includes 11 conditions.
Summary of terms in Incoterms 2020
What Incoterm 2020 has been answered. Next, let's read the summary content of the Terms of Incoterms 2020:
CFR/ CNF/ C+F/ C & F
Summary of CFR conditions:
- CFR is a seller delivering to buyers when the goods are placed on the deck or the seller buys the shipment so to deliver to the buyer.
- The risk of goods is transferred when the goods are located on the deck.
- The seller is not responsible for buying insurance for goods.
- The seller must sign a freight contract from the delivery place to the designated port.
- Use with shipping methods.
- Delivery point ≠ named place: Delivery location is different from the specified location.
CIF
Summary of CIF conditions:
- CIF is a seller delivering to buyers when the goods are on the deck or the seller buys the delivered shipment so that the buyer will be delivered to the buyer.
- The risk of goods is transferred when the goods are placed on the deck.
- The seller is responsible for buying insurance for goods.
- The seller must sign a freight contract from the delivered place to the designated port.
- Use with shipping methods.
- Delivery point ≠ named place: Delivery location is different from the specified location.
CPT
Summary of CPT conditions:
- CPT is a seller delivering to buyers and transferring risks to goods to buyers when the goods are delivered to the carrier leased by the seller or the seller who buys such a shipment to deliver goods to the buyer.
- The seller does not guarantee the goods to the destination in good and complete condition.
- The seller must sign a transport contract to bring goods from the delivery point to the reached destination.
- Use with all transport methods.
- Delivery point ≠ named place: Delivery location is different from the specified location.
CIP
Summary of CIP conditions:
- CIP is the seller delivered to the buyer and transferred the risks of goods to the buyer when the goods are delivered to the carrier rented by the seller or the seller who buys such a shipment to deliver goods to the buyer.
- The seller does not guarantee the goods to the destination in good and complete condition.
- The seller must sign a transport contract to bring goods from the delivery point to the reached destination.
- Sellers must buy insurance for goods.
- Use with all transport methods.
- Delivery point ≠ named place: Delivery location is different from the specified location.
DAP
Summary of DAP conditions:
- DAP is a seller delivering to buyers and transferring risks to goods to buyers when the goods are located under the buyer of the buyer.
- The seller is at all risks to bring the goods to the designated destination.
- The cost incurred before the delivery point is subject to the seller, the cost after the delivery point is subject to the buyer.
- The seller must sign a transport contract to bring the goods to the specified point.
- Use with all transport methods.
- Delivery Point = Named Place: The delivery location is the designated place.
Ddp
Summary of DDP conditions:
- DDP is a seller delivering to buyers when goods have completed import customs procedures.
- The seller is subject to all risks of loss or damage of goods.
- The cost incurred before the delivery point is subject to the seller, the cost after the delivery point is subject to the buyer.
- The seller must sign a transport contract to bring the goods to the designated location.
- Use with all transport methods.
- Delivery Point = Named Place: The delivery location is the designated place.
DPU
Summary of DPU conditions:
- DPU is a seller delivering to buyers and transferring risks to goods to buyers as soon as the goods are unloaded.
- The seller is at all risks of goods to bring the goods to the designated and unloaded destination.
- The costs incurred before the delivery point are subject to the seller and all costs after the delivery point by the buyer.
- The seller must sign a transport contract to bring the goods to the designated location.
- Use with all transport methods.
- Delivery Point = Named Place: The delivery location is the designated place.
Exw
Summary of EXW condition:
- EXW is a seller delivering to buyers when the goods are located under the buyer of the buyer at a specified location.
- Sellers do not need loading and unloading on vehicles, no need to carry out export customs procedures.
- The delivery occurs - Risks are delivered - when the goods are placed under the buyer of the buyer.
- Specify the minimum responsibility of the seller.
- Use with all modes of transport;
- Delivery Point = Named Place: The delivery location is the designated place.
FOB
Summary of FOB conditions:
- FOB is a seller delivering to buyers when the goods are placed on the deck designed by the buyer at the loading port or the seller who buys such a shipment to deliver to the buyer.
- The risk of goods is transferred when the goods are on the deck and the buyer bears all costs from that time.
- Ask the seller to carry out export customs procedures.
- Use with shipping methods.
- Delivery Point = Named Place: The delivery location is the designated place.
FCA
Summary of FCA condition:
- FCA is the seller delivered to the buyer when: when the location is designated as the basis of the seller or when the location is indicated is elsewhere.
- Any of the two locations above are designated for delivery, that location determines where the cost and risk are transferred to the buyer.
- FCA requires the seller to carry out export customs procedures.
- B/L notes "on board" in the contract to use FCA.
- Use with all transport methods.
- Delivery Point = Named Place: The delivery location is the designated place.
FAS
Summary of FAS conditions:
- FAS is a seller delivering to buyers when the goods are placed along the side of the ship's appointed by the buyer at the delivery port or the seller buys such a shipment to deliver goods to the buyer.
- The risk of goods is transferred when the goods are placed along the side of the ship and the buyer bears all costs from that time.
- Ask the seller to carry out export customs procedures.
- Use with shipping methods.
- Delivery Point = Named Place: The delivery location is the designated place.
The difference between Incoterm and 2020 and Incoterm 2010
What is the difference between Incoterm 2010 and Incoterm 2020? That is:
- Explain more about Incoterms in the introduction;
- Insurance levels of CIF and CIP conditions are adjusted;
- Data conditions are replaced by DPU conditions;
- Incoterms 2020 rearranges the obligations of the parties to clarify the content of delivery obligations and risk division;
- The obligation to divide the costs is moved to Section A9/B9;
- On-board bill of lading when delivery with FCA condition.
Thus, the parties involved in the international trade contract also understood what Incoterm 2020 is , the conditions in the 2020 Incoterm 2020 and the 2020 2020 is different from the 2010 Incoterm to apply properly ... all questions Concerned with Incoterm or if there is a need to transport multimodal goods, contact 0909 344 247 .
