global freight forwarding and logistics · to the application of “incoterms®2010” to sales and...

Incoterms®2010

Global Freight Forwarding and Logistics

www.hartrodt.com

Critical Points in International Transport

Any mode of transport Sea and inland waterway transport

Depending on selected mode of transport the critical points of risks and costs will vary.

These diagrams illustrate critical points in international transport in relation to the application of “Incoterms®2010” to sales and purchases. “Incoterms®”contain international rules for the interpretation of the terms used in foreigntrade contracts which have been compiled by the “International Chamber ofCommerce” in order to define sellers’ and buyers’ responsibilities as clearlyand precisely as possible.

It is not possible for “Incoterms®” to be fully comprehensive due to variationsdecided by the custom of particular trades and/or ports. Care should be taken when applying the rules to account for these eventualities. Contractsgoverned by the provisions of “Incoterms®2010” should clearly indicate so.

SELLER 1 2 3 CARGOTERMINAL

CUSTOMS 4 5 5

8 89 11 CUSTOMS

10 CARGOTERMINAL

12 BUYER

Critical pointCritical point is that point in transit where theseller’s responsibility ends and the buyer’sresponsibility begins.

Documents (Docs)Documents, which are required to enable theseller to put goods at buyer’s disposal at thecritical point are arranged and paid for by theseller.

RisksThe possibility that an event may occur which could cause loss of or damage to the goods is a ‘risk’. Buyers and sellers can protect themselves against risks by insurance.

Documents, which are requiredto enable the seller to putgoods at buyer’s disposal atthe critical point are arrangedand paid for by the seller.

This mark indicates what theseller is to arrange for buyer’saccount and risk. The sellershall assist with documents orequivalent electronic messageswhich may be required from theagreed critical point for export,for transit through other countriesand for import.

Documents, which are requiredand paid for by the buyer.

CostsCover all costs except costs of documents. Sales and purchase contracts should clearlystate which costs on transfer of the goods are for account of buyer and seller.

Free Alongside Ship (... named port of shipment)

Free On Board (... named port of shipment)

Cost and Freight (... named port of destination)

Cost, Insurance and Freight (... named port of destination)

CUSTOMS CUSTOMS

11 CUSTOMS

10 CARGOTERMINAL

CUSTOMS

CUSTOMS 4

9 12 BUYER

CUSTOMS

EXWDocs

Ex Works (... named place of delivery)

Free Carrier (... named place of delivery)

Carriage Paid To (... named place of destination)

Carriage and Insurance Paid To (... named place of destination)

Delivered At Terminal (... named terminal at port or place of destination)

Delivered At Place (... named place of destination)

Delivered Duty Paid (... named place of destination)

All rights reserved. Reproduction in whole or in part is prohibited without the written consent of the copyright owner. For detailed explanation reference is made to the original ICC Publication Incoterms®2010 rule book available at www.icc-deutschland.de. Incoterms® is a registered trademark of the International Chamber of Commerce.

Incoterms®2010

Critical Points in International Transport

Any mode of transport Sea and inland waterway transport

Depending on selected mode of transport the critical points of risks and costs will vary.

These diagrams illustrate critical points in international transport in relation to the application of “Incoterms®2010” to sales and purchases. “Incoterms®”contain international rules for the interpretation of the terms used in foreigntrade contracts which have been compiled by the “International Chamber ofCommerce” in order to define sellers’ and buyers’ responsibilities as clearlyand precisely as possible.

It is not possible for “Incoterms®” to be fully comprehensive due to variationsdecided by the custom of particular trades and/or ports. Care should be taken when applying the rules to account for these eventualities. Contractsgoverned by the provisions of “Incoterms®2010” should clearly indicate so.

CUSTOMS 4 5 5

8 89 11 CUSTOMS

10 CARGOTERMINAL

12 BUYER

Critical pointCritical point is that point in transit where theseller’s responsibility ends and the buyer’sresponsibility begins.

Documents (Docs)Documents, which are required to enable theseller to put goods at buyer’s disposal at thecritical point are arranged and paid for by theseller.

RisksThe possibility that an event may occur which could cause loss of or damage to the goods is a ‘risk’. Buyers and sellers can protect themselves against risks by insurance.

Documents, which are requiredto enable the seller to putgoods at buyer’s disposal atthe critical point are arrangedand paid for by the seller.

This mark indicates what theseller is to arrange for buyer’saccount and risk. The sellershall assist with documents orequivalent electronic messageswhich may be required from theagreed critical point for export,for transit through other countriesand for import.

Documents, which are requiredand paid for by the buyer.

CostsCover all costs except costs of documents. Sales and purchase contracts should clearlystate which costs on transfer of the goods are for account of buyer and seller.

Free Alongside Ship (... named port of shipment)

Free On Board (... named port of shipment)

Cost and Freight (... named port of destination)

Cost, Insurance and Freight (... named port of destination)

CUSTOMS CUSTOMS

11 CUSTOMS

10 CARGOTERMINAL

CUSTOMS

CUSTOMS 4

9 12 BUYER

CUSTOMS

EXWDocs

Ex Works (... named place of delivery)

Free Carrier (... named place of delivery)

Carriage Paid To (... named place of destination)

Carriage and Insurance Paid To (... named place of destination)

Delivered At Terminal (... named terminal at port or place of destination)

Delivered At Place (... named place of destination)

Delivered Duty Paid (... named place of destination)

All rights reserved. Reproduction in whole or in part is prohibited without the written consent of the copyright owner. For detailed explanation reference is made to the original ICC Publication Incoterms®2010 rule book available at www.icc-deutschland.de. Incoterms® is a registered trademark of the International Chamber of Commerce.

Incoterms®2010

Global Freight Forwarding and Logistics

www.hartrodt.com