chapter2 Incoterms .ppt

8/9/2019 chapter2 Incoterms .ppt

1/60

CHAPTER 2:

INTERNATIONAL COMMERCE TERMS

CONTRACT ON INTERNATIONAL SALES OF GOODS


2/60


3/60

I. GENERAL VIEW OF INTERNATIONAL SALES OFGOODS

1. DefinitionPurchase and Sale of Goods

VN Coerc!al La" #$$%& Purchase andsale of 'oods ean coerc!al ac(!)!(!es "here*+the seller is obliged to deliver goods, (ransfero"nersh!- of 'oods (o (he -urchaser and rece!)e-a+en( (he -urchaser !s o*l!'ed (o -a+ (o (heseller and receive goods and (he o"nersh!-(hereof as a'reed.In(erna(!onal Sales of Goods.


4/60

I. GENERAL VIEW OF INTERNATIONAL SALES OFGOODS

VN C.L 2005 Art. 27 &28.

In(erna(!onal -urchase and sale of 'oods shall *econduc(ed !n for of e/-or(, !-or(, (e-orar+!-or( for re0e/-or(, (e-orar+ e/-or( for re0!-or(

and (ransfer (hrou'h *order0'a(es.

1 E/-or( of 'oods eans (he *r!n'!n' of 'oods ou( of(he (err!(or+ of (he Soc!al!s( Re-u*l!c of V!e(na or

!n(o s-ec!al 2ones !n (he V!e(naese (err!(or+, "h!chare re'arded as e/clus!)e cus(os 2ones accord!n'(o (he -ro)!s!ons of la".


5/60

II. INTERNATIONAL COMMERCIAL TERMS

1. Definition

0 Inco(ers3 are (he ICC rules for (he

!n(er-re(a(!on of (rade (ers "ere created by

ICC "!(h (he a! of facilitating inter. Trade.

0 The Inco(ers3 rules e/-la!n a se( of (hree0

le((er (rade (ers reflec(!n' business-business

practice !n con(rac(s for (he sale of 'oods.


6/60


0 The Inco(ers rules descr!*e a!nl+ (heo*l!'a(!ons, cos(s and r!s4s !n)ol)ed in the

delivery of goods from the seller to buyer.

2. Characteristics0 Inco(ers are ICC rules *u( no o*l!'a(!ons of

a--l+!n' (o (he Con(rac(.

0 5se !n (he Con(rac( for sale and -urchase of'oods.


7/60


0 Choose (he a--ro-r!a(e Inco(ers rule !n (heCon(rac(.

0 Def!ne e/ac(l+ s-ec!f!c ed!(!on of Inco(ers .

0 Inco(ers does no( deal "!(h an+ !ssuesar!s!n' !n or rela(!n' "!(h (he Con(rac(.

0 Ma4e add!(!ons, ad6us(en( of Inco(ers rules

!n (he Con(rac( *u( 4ee- -r!nc!-les andfea(urers unchan'ed.


8/60

INCOTERMS 2010 11 terms

Grou- 7& Sea and Inland Wa(er"a+

Grou- #& An+ ode or odes of (rans-or(7 E8W E/ Wor4s G!ao (9! /:;n'

# FCA Free Carr!er G!ao cho n':

= CPT Carr!a'e Pa!d (o C:>c -h? (r@ (>! CIP Carr!a'e Insurance -a!d (o C:>c -h?, B (r@ (>!

% DAT Del!)er!ed a( (er!nal G!ao (9! *n

DAP Del!)ered a( -lace G!ao (9! n! n

H DDP Del!)ered Du(+ -a!d G!ao (9! ?ch (hu (r@

7 FOB Free on Board G!ao hJn' (rKn (Ju# FAS Free alon's!de sh!- G!ao dc 9n (Ju

= CFR Cos( anf fre!'h( T!n hJn' )J c:>c -h?

CIF Cos(, Insurance and Fre!'h( T!n hJn', c:>c -h? )JB


9/60


10/60


11/60


ELLERELLER %!#ER%!#ER

A7A7 General o*l!'a(!onsGeneral o*l!'a(!onsof (he Sellerof (he Seller

B7B7 General o*l!'a(!ons ofGeneral o*l!'a(!ons of(he Bu+er(he Bu+er

A#A# L!censes,L!censes,

au(hor!2a(!ons,au(hor!2a(!ons,secur!(+ clearancessecur!(+ clearancesand o(her foral!(!esand o(her foral!(!es

B#B# L!censes,L!censes,

au(hor!2a(!ons,au(hor!2a(!ons,secur!(+ clearancessecur!(+ clearancesand o(her foral!(!esand o(her foral!(!es

A=A= Con(rac(s of carr!a'eCon(rac(s of carr!a'e

and !nsuranceand !nsurance

B=B= Con(rac(s of carr!a'eCon(rac(s of carr!a'e

and !nsuranceand !nsurance

AA Del!)er+Del!)er+ BB Ta4e del!)er+Ta4e del!)er+

A%A% Transfer of r!s4Transfer of r!s4 B%B% Transfer of r!s4Transfer of r!s4


12/60


ELLERELLER %!#ER%!#ER

AA Alloca(!on of cos(Alloca(!on of cos( BB Alloca(!on of cos(Alloca(!on of cos(

AHAH No(!ces (o (he Bu+erNo(!ces (o (he Bu+er BHBH No(!ces (o (he SellerNo(!ces (o (he Seller

AA Proof of del!)er+Proof of del!)er+ BB Proof of del!)er+Proof of del!)er+

AA Chec4!n' Pac4!n' 0Chec4!n' Pac4!n' 0Mar4!n'Mar4!n' BB Ins-ec(!on of 'oodsIns-ec(!on of 'oods

A7$A7$ Ass!s(ance "!(hAss!s(ance "!(h!nfora(!on and!nfora(!on and

rela(ed cos(rela(ed cos(

B7$B7$ Ass!s(ance "!(hAss!s(ance "!(h!nfora(!on and!nfora(!on and

rela(ed cos(rela(ed cos(


13/60


E Grou-E Grou- F Grou-F Grou- C Grou-C Grou- D Grou-D Grou-E8WE8W FCA,FCA,

FOB, FASFOB, FASCFR, CIF,CFR, CIF,CPT, CIPCPT, CIP

DAT, DAP,DAT, DAP,DDP,DDP,

Fea(uresFea(ures No( *earNo( *earan+ ofan+ ofcos( andcos( andr!s4 forr!s4 for'oods'oods

carr!a'ecarr!a'e

NoNocon(rac(con(rac(forforCarr!a'eCarr!a'e

Con(rac(Con(rac(forforcarr!a'ecarr!a'e

Bear allBear allcos( andcos( andr!s4 forr!s4 for'oods'oodscarr!a'ecarr!a'e

D!s(r!*u(!onD!s(r!*u(!onof r!s4of r!s4

De-ar(ureDe-ar(ure De-ar(ureDe-ar(ure De-ar(ureDe-ar(ure Des(!na(!onDes(!na(!on

The SellerQs O*l!'a(!ons


14/60


Con(rac( forCon(rac( forcarr!a'ecarr!a'e

NoneNone Bu+erBu+er SellerSeller SellerSeller

ClearanceClearance

for e/-or(for e/-or(

Bu+erBu+er SellerSeller SellerSeller SleerSleer

ClearanceClearance

for !-or(for !-or(

Bu+erBu+er Bu+erBu+er Bu+erBu+er Bu+er&Bu+er&

DAT, DAPDAT, DAPSeller& DDPSeller& DDP


15/60

Risk and Cost division

S!ul(aneous&

Grou- E

Grou- FGrou- D

D!fferen( -o!n(s&Grou- C

CFR, CIF& R!s4 -ass!n' l!4eFOB. The Seller *ear all(rans-or( cos( and char'es(o (he des(!na(!on -or(.

CPT, CIP& R!s4 -as!n' l!4eFCA. The Seller *ear all(rans-or( cos( and char'es(o (he des(!na(!on -lace.

eer %'(er


16/60


. Inco(ers #$7$ rules.7. E8W E8 Wor4s 0 naed -lace of del!)e+

E8W Garco7$, V!e(na Inco(ers #$7$.

1 The Seller a4e del!)er+ "!(h no load!n' of

'oods and clearance for e/-or(.

1 R!s4 and Cos(& Fulf!ls h!s del!)er+ o*l!'a(!on.


17/60


.#. FOB Free on Board naed -or( of sh!-en(FOB a!-hon'-or(, V!e(na Inco(ers #$7$

0 Ma!n O*l!'a(!ons of (he Seller&

1Del!)er+ & 'oods are on *oard (he )essel.1 Clear (he 'oods for e/-or(

1 Pa+ load!n' char'es !n case no( !ncluded !n (he

fre!'h( of carr!a'e con(rac(.


18/60


1 Pro)!de (he usual proof of goods del!)er+.1 Pass (he r!s4 and cos(& Fulf!ls h!s del!)er+

o*l!'a(!on.

UA &

a. Wh+ !s FOB su!(a*le "!(h (he ode of sea and

!nland "a(er"a+ (rans-or(

*. Wha( does earl+ -ass (he r!s4 and cos(X

ean

c. FOB an+-or( of V!e(na, Inco(ers #$7$. TUF


19/60


20/60

FOB

Goods


21/60


.=. FAS Free alon's!de sh!- naed -or( of

sh!-en(

FAS a!-hon'-or(, V!e(na Inco(ers #$7$


1 Del!)er & 'oods are on alon's!de (he sh!-.

1 Clear (he 'oods for e/-or(

1 Pro)!de (he usual proof of goods del!)er+.

1 Pass (he r!s4 and cos(& 'oods del!)ered.

UA& Who *ears load!n' and handl!n' char'es


22/60


23/60


24/60

VIETNA) "ORT DE"T$

Port Province and city Maximm de!t"

1 Cam P"a #an$ Nin" %&'01 (on )ai #an$ Nin" %*'+1 (ai P"on$ (ai P"on$ %*'01 ,a Nan$ ,a Nan$ %12'0

1 #y N"on Bin" ,in" %&'01 N"a Tran$ -"an" (oa %&'01 P" My Ba Ria %.n$ Ta %12'01 Sai )on (o C"i Min" City %10'01 Cai /an #an$ Nin" %1'0

1 Cai Me! Ba Ria %.n$ Ta %1'01 ,n$ #at #an$ N$ai %'1 C"an May T"a T"ien (e %12'01 -y (a #an$ Nam %'


25/60


.. FCA Free Carr!er naed -lace of del!)er+

FCA No!*a! A!r-or(, V!e(na Inco(ers #$7$


1 Del!)er+ & 'oods are del!)ered (o (he carr!er.

1 Place of del!)er+&

Y A( (he SellerQs -re!se& load!n'.

Y Ano(her -lace no( (he sellerQs -re!ses&unload!n'.


26/60


1 Clear (he 'oods for e/-or(

1 Pro)!de (he usual proof of goods del!)er+.1 Pass (he r!s4 and cos(& 'oods del!)ered a( (he

-o!n( s-ec!f!ed *+ (he -ar(!es.

UA&a. To co-are FCA "!(h FOB

*. When does FCA re-lace for FOB !ncase of sea

and !nland "a(er"a+ (rans-or(

c. Who !s (he carr!er !n (he FCA rule


27/60


d. In a con(rac( F0(ersa!-hon' -or(, Inco(ers #$7$,

del!)er+ da(e Fe*.#=, #$7, 'oods lea)e (hesellerQfac(or+ !n ano! on Fe*.7%, #$7, arr!)e a( (he

for"arderQs (er!nal !n a!-hon' -or( on Fe*. ##, #$7

da(e of (he fre!'h( car'o rece!-( and are rece!)ed *+(he sh!- on Fe*.#, #$7 da(e of *oard!n'. When

does (he FCA sellerUFOB seller del!)er

e. FCA & Wha( ha--ens !f (he Seller del!)ers (he 'oods

and (hus r!s4 has -assed (o (he *u+er, *u( (he (he

seller fa!ls (o sa(!sf+ (he reZu!red e/-or( foral!(!es


28/60


29/60

THE BOX THAT CHANGED THE WORLD


30/60


.%. CFR Cos( and Fre!'h( naed -or( of

des(!na(!onCFR a!-hon'-or(, V!e(na Inco(ers #$7$


1 Con(rac( for and -a+ (he cos(s, fre!'h(necessar+ (o *r!n' (he 'oods (o (he naed -or(

of des(!na(!on.

1 Del!)er+ & 'oods are on *oard of (he )essel !n

(he -or( of sh!-en(.


31/60


1 Pro)!de (he (rans-or( docuen(s as -roof ofdel!)er+.

1 Transfer r!s4 and cos(& R!s4& Fulf!ls h!s del!)er+ o*l!'a(!on !n -or( of

sh!-en(.

Cos(& -or( of des(!na(!on

1 Pa+ load!n' and unload!n' !f !ncluded !n (he

fre!'h( of carr!a'e con(rac(.


32/60


UA &

a. For CFR rule, "ho "!ll -a+ (he add!(!onal cos(

occurr!n' af(er (he (!e of del!)er+ .

*. Wh+ does (he Bu+er a'ree (o choose CFR rule

of Inco(ers #$7$ Is !( so harful (o (he Bu+erand *enef!c!al for (he Seller

c. Wha( !s (rans-or( docuen(s

d. CFR [ FOB Y F. TUFe. F!ll!n' !n *lan4&


33/60


*O% $ai+hon, +ort-Incoters 2010

CI* $ai+hon, +ort-Incoters 2010

Seller

Con(rac( ofcarr!a'e

Load!n' Por(

D!schar'ePor(

Carr!er


34/60


*O% $ai+hon,+ort- In. 2010

CI* $ai+hon, +ort-In. 2010

Pass!n' -o!n( of r!s4

Pass!n' -o!n( of cos(

Proof of Del!)er+

Con(rac( Pr!ce!nclud!n' Insurance

Load!n' char'es

5nload!n' char'esE/-or( Foral!(!(es

I-or( Foral!(!es


35/60

FOB

Goods

BL


36/60


.. CIF Cos(, Insurance and Fre!'h( naed -or(

of des(!na(!onCIF a!-hon'-or(, V!e(na Inco(ers #$7$

0 Ma!n o*l!'a(!ons of (he Seller&

1 Pass r!s4 and cos(& l!4e CFR1 O*l!'a(!ons of (he Seller !n (he CFR rule and

1 Con(rac( of !nsurance&

Y Con(rac( "!(h an re-u(a*le under"r!(er or!nsurance co-an+.


37/60


Y En(!(le (he *u+er or o(her -erson ha)!n' !nsura*le

!n(eres( !n (he 'oods.Y A( leas( "!(h (he !n!u co)er -ro)!ded *+

Clause C of LMAUI5A.

Y Co)er a( a !n!u of 77$\ con(rac( )alue.Y W!(h currenc+ of (he con(rac(.

Y T!e of co)er& fro (he -o!n( of del!)er+ (o a(

leas( (he naed -or( of des(!na(!on.Y Pro)!de (he -roof of !nsurance con(rac(.


38/60


UA &a. For CIR rule, can (he Bu+er as4 (he Seller (o

con(rac( for !nsurance "!(h h!'her clause and

)alue

*. Wh+ does (he !nsurance con(rac( co)er a(

!n!u 77$\ of -r!ce of 'oods

c. The V!e(naese (raders should choose CIF or

CFR Wh+


39/60


.H. CPT Carr!a'e -a!d (o naed -lace ofdes(!na(!on.

CPT No!*a! a!r-or(, V!e(na Inco(ers #$7$.

0 Ma!n o*l!'a(!ons of (he Seller&Y Con(rac( for carr!a'e& see CFR

Y Del!)er+& del!)er (o (he f!rs( carr!er no!na(ed *+

(he Seller a( an a'reed -lace.Y Pass r!s4 & fulf!ls h!s del!)er+ o*l!'a(!on.


40/60


Y Pass cos(& -a+ cos( of carr!a'e necessar+ (o*r!n' (he 'oods (o (he des(!na(!on.

Y Clear for e/-or(.

Y Pro)!de (rans-or( docuen(s.UA&

a. Co-ar!n' CPT "!(h CFR , CPT "!(h FCA

*. CPT [ FCA Y carr!a'e cos(.


41/60


.. CIP Carr!a'e, Insurance -a!d (o naed-lace of des(!na(!on.

CIP Tansonnha( a!r-or(, V!e(na, Inco(ers #$7$.

] O*l!'a(!ons of (he Seller& CIP [ CPT Y Insurance o*l!'a(!on

Insurance o*l!'a(!on& See CIF

UA& E/ce-( CIF, CIP, should (he -ar(!es con(rac(for !nsurance Wh+


42/60

HOW TO SELECT THE SUITABLE TERS


43/60


.. DAT Del!)ered a( (er!nal naed (er!nala( -or( or -lace of des(!na(!on.

DAT uun'h! *order 'a(e, V!e(na, Inco(ers

#$7$.0 Ma!n o*l!'a(!ons of (he Seller

1 Con(rac( for and -a+ (he cos(s, fre!'h(

necessar+ (o *r!n' (he 'oods (o (he (er!nal a((he naed -lace of des(!na(!on.


44/60


1 Del!)er+ & unload and -lace (he 'oods a( (he

d!s-osal of (he *u+er a( a naed (er!nal.1 Clear (he 'oods for e/-or(.

1 Pro)!de (he Bu+er "!(h docuen(s for 'oods

rece!-( a( (he des(!na(!on.1 Transfer r!s4 and cos( (o *r!n' (he 'oods (o (he

naed (er!nal.

UA&0 Wha( !s (er!nal en(!oned !n (he DAT rule.


45/60


.7$. DAP Del!)ered a( Place naed -lace of

des(!na(!on.

DAP Fore!'n Trade 5n!)er!s(+, V!e(na

Inco(ers #$7$.0 Ma!n o*l!'a(!ons of (he Seller


necessar+ (o *r!n' (he 'oods (o (he naed-lace of des(!na(!on.


46/60


1 Del!)er+ & -lace (he 'oods a( (he d!s-osal of (he *u+er

on (he arr!)!n' eans of (rans-or( a( a naed(er!nal and read+ for unload!n'.

1 Clear (he 'oods for e/-or(.

1 Pro)!de (he Bu+er "!(h docuen(s for 'oods rece!-(

a( (he des(!na(!on.

1 Transfer r!s4 and cos(& del!)er (he 'oods as anner

sa!d a*o)e.

UA& Can DAP re-lace for DAT


47/60


.77. DDP Del!)ered Du(+ -a!d naed -lace ofdes(!na(!on.

DDP Fore!'n Trade 5n!)er!s(+, V!e(na

Inco(ers #$7$.0 Ma!n o*l!'a(!ons of (he Seller& Ma/!u


necessar+ (o *r!n' (he 'oods (o (he naed-lace of des(!na(!on.


48/60

II. INTERNATIONAL COMMERCIAL TERMS1 Del!)er+ & -lace (he 'oods a( (he d!s-osal of (he

*u+er on (he arr!)!n' eans of (rans-or( a( a naed(er!nal and read+ for unload!n'.

1 Clear (he 'oods for e/-or( and !-or(.

1 Pro)!de (he Bu+er "!(h docuen(s for 'oods rece!-(

a( (he des(!na(!on.

1 Transfer r!s4 and cos(& del!)er (he 'oods as (he

anner sa!d a*o)e.

UA& "ha( are ad)an(a'es and d!sad)an(a'es of DDP


49/60


FOB *er(h (ers

FOB s(o"edFOB (r!edFOB sh!-en( (o des(!na(!on&

FOB under (ac4leCFR afloa(CFR landed ho^c CIF landed

CFR l!ner (erCFR FO, FI, FIOCIF CD cus(o Zu!c4 d!s-a(ch

II INTERNATIONAL COMMERCIAL TERMS


50/60


C$OOIN/ AN A"RO"RIATE R!LE O* INCOTER)

7. Pos!(!ons of con(rac(!n' -ar(!es.#. Fea(ures of 'oods, odes of -ac4!n' and handl!n'

as "ell as (ransac(!ons.

=. Carr!a'e d!s(ance.

=. Mode -f (rans-or(.. Por( -rac(!ces.

%. No(!ce of a--l+!n' Inco(ers.

UA& Why do VN trader usually use FO for salecontract and CIF for purchase contract! Can reverse

this practice!.


51/60

I "an( (he'oods

I a sorr+ , !( had*een los(

The %'(er The eer

I "!ll (r+ (o re-lace!n (he ne/(sh!-en(

/ro'+ C

Grou- D


52/60


53/60


54/60

L!A CH"N #I$U %I&N CSGH


55/60



56/60



57/60



58/60


59/60


60/60

Documents

chapter2 Incoterms .ppt