Getting to know Incoterms 2010

1. In Incoterms 2010, risk refers

to of or to

the goods.

1. In Incoterms 2010, risk refers

to of or to

the goods.

loss damage

1. list at least five responsibilities that may be assigned to the seller or buyer, depending on the particular Incoterms rule.

1. list at least five responsibilities that may be assigned to the seller or buyer, depending on the particular Incoterms rule.

•packaging•marking•delivery•assistingwithlicenses•assistingwithCustoms•obtainingsecurityclearances

•obtainingcargoinsurance

•payingfor ...cargoinsurance ...taxesandduties ...loading/unloading ...transportation ...terminalhandlingcharges

1 2 3pre

carriagemain

carriageon

carriage

Transportation Categories

2. Which Incoterms rule can be used to transfer title of goods?

2. Which Incoterms rule can be used to transfer title of goods?

Trickquestion.Noneoftherulescanbeusedtotransfertitleofgoods.

3. In order to use the Incoterms rules properly, you should....

choose the right .

include the rule in your .

specify the place/port precisely.

3. In order to use the Incoterms rules properly, you should....

choose the right .

include the rule in your .

specify the place/port precisely.

ConTraCT

named

rule

Example

FCa 200 grand avenue, linden nJ 07036, Incoterms® 2010

New inIncoterms 2010

NewinIncoterms2010

Definitionofdelivery

4. Complete the following sentence. In Incoterms 2010, delivery is defined as....

NewinIncoterms2010

Definitionofdelivery

4. Complete the following sentence. In Incoterms 2010, delivery is defined as....wheretheriskpassesfromsellertobuyer.

NewinIncoterms2010

Definitionofpackaging

5. In Incoterms 2010, packaging refers to which two of the following conditions?

a) packaging to comply with the sales contractb) packaging so goods are fit for transportc) stowage of the packaged goods in a container

NewinIncoterms2010

Definitionofpackaging

5. In Incoterms 2010, packaging refers to which two of the following conditions?

a) packaging to comply with the sales contractb) packaging so goods are fit for transportc) stowage of the packaged goods in a container

NewinIncoterms2010

. who obtains security clearance

. who pays for terminal handling charges

. string sales

NewinIncoterms2010

a) alphabetically, by letterb) all modes vs. maritime onlyc) international vs. domestic d) import vs. export

6. In Incoterms 2010, how are the rules grouped?

NewinIncoterms2010

a) alphabetically, by letterb) all modes vs. maritime onlyc) international vs. domestic d) import vs. export

6. In Incoterms 2010, how are the rules grouped?

NewinIncoterms2010NewinIncoterms2010

AllModes

eXW ex-Works

FCa Free Carrier

CPT Carriage Paid To

daT delivered at Terminal*daP delivered at Place*ddP delivered duty Paid

CIP Carriage & Insurance Paid To

EXWDeliveryonce goods are available to buyer at the named place

Sellermust help buyer with docs/security info

ex-Works

FCASellerPremisesDeliveryonce goods are loaded onto 1st carrier

TerminalDeliveryonce goods are made available to unload at 1st carrier's terminal

Seller/Exporterarranges export formalities

Free Carrier

1st carrier

CPT

Deliveryonce goods are loaded onto the first carrier

Sellerpays for freight to named place at destination

Carriage Paid To

1st carrier

DATBuyerresponsible for import clearance, on carriage

Sellerpays to destination terminal, including unloading

delivered at Terminal

unloading is on the seller

neW

DAPDeliveryto named destination, all transportation paid

Buyerresponsible for unloading, import clearance

delivered at Place

unloading is on the buyer

neW

DDPSellerbears all risk and cost up to the buyer's door

VAT*new*Value-added-Tax included by default for the seller

ddP Paris, France VaT unpaid Incoterms® 2010.

delivered duty Paid

Fas Free alongside shipFoB Free on BoardCFr Cost & FreightCIF Cost, Insurance, & Freight

ocean only

FASDeliveryonce goods are positioned alongside ship

Free alongside ship

FOBDelivery*change*once on board (no longer ship's rail)

Free on Board

delivery = on board

CFRDeliveryonce on board (same as FoB)

Sellerpays for freight to destination port

Cost & Freight

delivery = on board

7. Which two Incoterms rules require insurance?

7. Which two Incoterms rules require insurance?

CIF-CostInsurance&FreightCIP-Carriage&InsurancePaidTo

Best for international sales

•CPT or CIP

•CFr or CIF

•daP

•FCa

Best for global purchasing

•FCa

•FoB

•eXW

•daP

DomesticUse

Incoterms 2010 replace old uniform Commercial Code (uCC)

domestic use

Then: FoB origin, freight collect (buyer tasked w/loading)now: eXW

Then: FoB origin Car or other Vehicle, freight collect (seller tasked w/loading)

now: FCa seller's Premises

Then: FoB origin, freight prepaidnow: CPT & CIP

domestic use

Then: FoB destination, freight prepaidnow: daP

Then: FoB destination, freight collectnow: no equivalent

Then: Fasnow: Fas

Domestic Use

Then: FOB VesselNow: FOB

Then: C&F and CIFNow: CFR and CIF

Robert Steinrstein@mohawkglobal.com

Licensed U.S. Customs BrokerVice President, Customs & Trade Compliance

Mohawk Global Logisticsmohawkglobal.com