Incoterms (International Commerce terms) is a trademark of the International Chamber of Commerce (ICC). ICC rules for the use of trade terms in national and international trade. The official translation of Incoterms® 2010 of the International Chamber of Commerce (ICC) into Russian.
Incoterms 2010 (Incoterms 2010) – these are international rules recognized by government bodies, law firms and businessmen around the world as an interpretation of the most applicable terms in international trade. The scope of Incoterms 2010 (Incoterms 2010) extends to the rights and obligations of the parties under a contract of sale in terms of supply of goods (terms of delivery of goods).
The rules came into effect on January 01, 2011.
All terms that are part of Incoterms are indicated in the form of a three-letter abbreviation, the first letter in which indicates the time and place of the transfer of obligations from the supplier to the recipient:
- E Obligations pass to the buyer directly at the time of dispatch and, accordingly, at the place of dispatch of the goods;
- F The point of transfer of obligations is the terminal of departure, provided that the bulk of the transportation remains unpaid;
- С Payment for the main transportation is made in full, obligations are transferred at the time of receipt of the goods to the terminal of arrival;
- D “Full delivery”, when the transfer of obligations is carried out at the time of acceptance of the goods by the buyer.
The current Incoterms 2010 conditions contain 11 terms, of which 7 are applicable to cargo transported by any type of transport, and 4 exclusively to methods of delivering goods by surface transport (sea transport and territorial water transport).
- EXW “Shipment at own expense” or category of transportation, where the ex-point, that is, the place of transfer of responsibility from the supplier to the recipient, is directly the seller’s warehouse.
- FCA The regime obliging the seller to deliver the goods to the place of reception by the carrier in accordance with the terms of the contract (payment of export duties — the obligation of the supplier).
- CPT Payment for the main part of the carriage, that is, to the point of arrival, lies with the seller, who, in accordance with the contract, delivers the goods to the carrier (insurance and customs fees, import fees and customs clearance at the buyer).
- CIP Delivery mode, almost the same as CPT category, the difference lies in the obligation to pay insurance to the seller;
- DAT Distribution of costs between seller and buyer: the first pays for delivery to the arrival terminal and export payments and insurance fees, the second pays for customs clearance and the rest of the transportation to the destination.
- DAP Delivery of goods to the destination with the obligation to pay import duties and taxes to the recipient state to the buyer.
- DDP Delivery of goods to the destination with the cost of the seller in full.
The terms applicable to freight carried by sea and other water transport:
- FOB Shipment of goods to a vessel belonging to the buyer or paid by him, while the payment of the delivery to the terminal is the seller’s responsibility;
- FAS Delivery of goods to the buyer’s vessel without shipment. The burden of paying for shipping and delivery lies with the recipient.
- CFR Transportation of goods to the port specified in the contract. At the same time, the buyer bears all the costs of delivery, payment of insurance, unloading and transhipment work on his own.
- CIF The delivery mode is similar to the CFR category, however, the payment of insurance premiums rests with the seller.