Therefore the level of cover may need to be addressed elsewhere in the commercial agreement. The current iteration are incoterms 2010 which replaced the previous set of terms from 2000. Bestimmungshafen zusatzlich zur cfrvereinbarung eine seeversiche. Cost insurance and freight cif is quite similar to cfr but only with a slight difference. The passing of risk occurs when the goods pass the ships rail at the port of shipment. Incoterms or international commerce terms is a series of international sales terms that is widely used throughout the world. Delivered at frontier daf goods are considered delivered once the seller places them at the disposal of the buyer without unloading said goods from the mode of transportation used. Incoterms 2000 incoterms 2000 international commercial terms are a series of international sales terms, published by international chamber of commerce icc and widely used in international commercial transactions. It is important, however, to clearly specify which version you have chosen.
Transport expenses are thus the responsibility of the exporter. A named location must be listed as part of the agreed incoterm and the version of the incoterms should be included. These instructions are classified into four groups of incoterms that is, groups c, d, e and f that are identifiable to their first letter alphabets. When making an agreement based on incoterms, it is advisable to state the terms of delivery agreed in the contract of sale and commercial invoices e. Incoterms 2000, exw, fca, fas, fob, cfr, cif, cpt, cip. Feb 22, 2018 cif stands for cost, insurance, and freight. I just read the latest issue of the chaina magazine edited by the supply chain council and i found a very nice explanation of the changes from incoterms 2000 to incoterms 2010. Incoterms 2000 provides a set of international rules, published by the international chamber of commerce icc effective 1 january 2000, for the interpretation of the most commonly used trade terms. The risk is passed on by the buyer from the seller. Below is a summary of the most commonly used 2000 and 2010 incoterms. The international chamber of commerce icc explains the main changes of incoterms 2020. These four terms were combined into dat and dap in incoterms 2010, but remain in use by incoterms 2000 traders. This happens as soon as the shipment gets loaded on to the carrier.
For a more complete description of each of the incoterms, the ibt guide to incoterms 2000 book published by international business training fully and clearly defines each of the new incoterms that became effective january 1, 2000, and includes a number of case studies that demonstrate the use of the different terms in reallife situations. Incoterms are not implied into contracts for the sale of goods. A summary of the main difference between the 2000 and 2010 incoterms is given here. Incoterms 2000 offer a simpler and clearer presentation of the definitions, all of which have been revised. Cif des deq cost, insurance and freight named port of destination delivered ex ship named port of destination delivered ex quay.
International commercial terms incoterms the incoterms international commercial terms is a universally recognized set of definitions of international trade terms, such as fob, cfr and cif, developed by the international chamber of commerce icc in paris, france. The icc has launched the incoterms 2020, which is effective from the 1st of january 2020. Four incoterms daf, des, deq, ddu have been replaced by two new incoterms dat, dap. The broad expertise of iccs commission on international commercial practice, whose membership is drawn from all parts of the world and all trade sectors, ensures that incoterms 2000 respond to business needs everywhere. However as with carriage and insurance paid to, the rule only require a minimum level of cover, which may be commercially unrealistic. In that, in cif there happens to be an addition of the insurance. Incoterms 2010 please note that all contracts made. Incoterms 1990 superseded, current incoterms is incoterms.
Incoterms are contractual terms, the incorporation of which in sales contracts usefully complements the provisions of the. In the terms intended to be used exclusively for carriage of goods by seasuch as fas, fob, cfr, cif, des and deqthe expressions port of. List of incoterms international commercial terms cfr cost and freight the exporter must deliver the goods at the port of destination selected by the importer. This prevents problems with interpretation which may arise in countries that have their own definitions of delivery terms. Incoterms are international rules that are accepted by governments, legal authorities and practitioners worldwide for the interpretation of the most commonly used terms in international trade. It divides transaction costs and responsibilities between. Incoterms 2000 chart of responsibility the following chart summarizes the responsibilities of both the buyer and seller for each of the current incoterms. Incoterms 2000 are already used in countless commercial sales contracts. Under the cif and cip terms the seller also has to. The seller is responsible for the contract of the carrier and also for the payment of all, costs of pre. The incoterms rules developed by the international chamber of commerce is the industry standard for the interpretation and usage of trading terms used in a contract of sale in domestic and international trade in this article, we will discuss the cif incoterm which is one of the 11 incoterms 2010 rules. The seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage. The importer bears the expenses of insurance and unloading of the goods.
Cost, insurance and freight cif means the seller pays costs, freight and insurance against the buyers risk of loss or damage in transit to destination. Incoterms rules icc international chamber of commerce. Incoterms 2010 is the eighth set of predefined international contract terms published by the international chamber of commerce, with the first set having been published in 1936. As defined in incoterms 2010, cif means that the seller is required to deliver the goods on board the vessel or procures the goods already so delivered. Verkaufer eine warenversicherung zugunsten des kaufers. The difference between the incoterms 2000 and the 2010 version was the reduction in the numbers of incoterms from to 11. Each of the incoterms issues specific instructions for departure, payment of costs or delivery of goods. Incoterms 2000 is an abbreviation of international commercial terms. Acp listing incoterms 2000 as international accepted commercial terms defining roles of buyer and seller in the arrangement of transportation and other trading responsibilities exw. Incoterms 2000 have been released in september 1999 under icc publication reference number 560 and have entered into force on 1 january 2000. They either reduce or remove altogether uncertainties arising from differing. The incoterms faqs about the basics why incoterms. The international chamber of commerce dz amends incoterms rules about every ten years.
Incoterms 2010 the incoterms rules have been incorporated in contracts for the sale of goods worldwide and provide rules and guidance to importers, exporters, lawyers, transporters, insurers and students of international trade. Incoterms 2000 provides a set of international rules, published by the international chamber of commerce icc effective 1 january 2000, for the interpretation of the most commonly. The following chart summarizes the responsibilities of both the buyer and seller for each of the current incoterms. These terms differ fundamentally from the other eight incoterms exw, fca, fas, fob, cfr, ctp, cif and cip because they are terms used with delivery contracts. Seller also arranges and pays for insurance for the goods for carriage to the named port. If you desire to use incoterms, you must specifically include them in your contract. The icc will be releasing a newly amended set of incoterms in 2020 which will be known as incoterms 2020. Incoterms 2000 incoterms 2000 incoterms or international commerce terms is a series of international sales terms that is widely used throughout the world. Ex works title and risk pass to buyer including payment of all transportation and insurance cost from the sellers door.
These are daf delivered at frontier, des delivered exship deq delivered exquay, ddu delivered duty unpaid and ddp delivered duty paid. Itn logistics group incoterms 2000 general overview incoterms are the official international chamber of commerce icc rules for the interpretation of international trade terms that defines the respective roles of the buyer and seller in the arrangement of. They are used to divide transaction costs and responsibilities between buyer and. Incoterms cif is short for cost, insurance and freight. Sep 06, 2019 obviated terms used by incoterms 2000. We will look at what it is, where it is used, its advantages and disadvantages. Exw harrisburg, pa, incoterms 2000 fca kennedy intl airport, incoterms 2010 fob port houston, incoterms 2010. Under cif incoterms, the seller delivers goods onboard the vessel at the port of shipment, pays for transport and minimum insurance coverage. Incoterms structure the incoterm as a threeletter acronym is insufficient. Incoterms 2010 defines 11 rules, down from the rules defined by incoterms 2000. Therefore, a point up to which he would have to pay transport costs must necessarily be indicated after the respective cterm. By letter of 28 february 2000 reproduced in annex i, the secretarygeneral of the international chamber of commerce icc requested the commission to consider endorsing incoterms 2000 for worldwide use.
70 162 518 299 1469 646 1096 745 224 259 580 1110 148 759 1233 328 621 1607 74 158 983 111 584 866 433 32 606 1660 438 792 1212 792 925 1264 926 295 837 511 1284 150