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Welcome to Weiss-Röhlig

Incoterms®2010

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Incoterms® 2010

Incoterms® 2010by the International Chamber of Commerce (ICC)

The 7th revision of the globally-known trade terms developedand published by the International Chamber of Commerce will come into effect on 1 January 2011.

Renewals at a glance

The new Incoterms DAT and DAP replace the former terms DAF, DES, DEQ, and DDU .

Definition of terminal according to Incoterms® 2010: Terminal includes any place, whether covered or not. It canbe a quay, a warehouse, a container yard, a road, rail or air cargo terminal.

New transfer of costs and risks under the terms FOB, CFRand CIF .

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Obligations, transfer of risks and allocation of costs in connection to delivery of a consignment from seller to buyer.

Up to which place the risks are borne by seller.

Up to which place the costs are borne by seller.

Which responsibilities are borne by the seller.

Which responsibilities are borne by the buyer.

Incoterms® 2010

Incoterms define:

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Incoterms DO NOT define:

Transfer of ownership

Terms of payment

Credit terms

Date of delivery

Court of jurisdiction and applicable law

Liability and warranty

Replacement delivery

Copyrights

Financing

Incoterms® 2010

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Use and validity

It is not mandatory to use Incoterms in a sales contract.

Incoterms are a set of uniform trade terms aimed at helping the contracting parties (seller and buyer) to specify their sales contract exactly.

Incoterms are not price clauses, but do have an impact on the pricing.

Sales contracts which are based on a former version (e.g. Incoterms 2000) remain valid according to the terms of that version.

Theoretically, it is still possible to conclude sales contracts based on a former version of the Incoterms after 1 January 2011.

Incoterms® 2010

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Please note:

In their sales contract, buyers and sellers should refer to the appropriate version of the Incoterms e.g. FOB Hamburg, Incoterms 2010.

It is possible to add clauses or change the wording of Incoterms.

Examples:CFR Charleston port USA incl. THC, CUC, ISPS in CharlestonFCA Vienna Airport loaded on aircraftDDP Hanoi Vietnam VAT unpaid

Bear in mind that a change in the transfer of costs can result in a changed transfer of risks.

Incoterms® 2010

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Please note:

Exact definition of location, terminal and port for a smooth transfer of costs and risk: exact address + location + countryexact terminal + location + country

If no exact point is specified but more than one is possible, the seller may select the point that is most suitable.

Definition of terminal according to Incoterms® 2010: Terminal includes any place, whether covered or not. It can be a quay, a warehouse, a container yard, a road, rail or air cargo terminal.

Incoterms® 2010

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Structure:seller‘s obligations (A)

1. General obligations of the seller2. Licences, authorisations, security

clearances and other formalities3. Contracts of carriage and insurance4. Delivery5. Transfer of risks6. Allocation of costs7. Notices to buyer8. Transport document9. Checking – packing – marking10.Assistance with information and

related costs

Incoterms® 2010

Structure:buyer‘s obligations (B)

1. General obligations of the buyer2. Licences, authorisations, security

clearances and other formalities3. Contracts of carriage and insurance4. Taking delivery5. Transfer of risks6. Allocation of costs7. Notices to seller8. Proof of delivery9. Inspection of goods10.Assistance with information and

related costs

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Terms for multimodal transports

EXW (EX WORKS) FCA (FREE CARRIER) CPT (CARRIAGE PAID TO) CIP (CARRIAGE AND INSURANCE PAID TO) DAT (DELIVERED AT TERMINAL ) DAP (DELIVERED AT PLACE) DDP (DELIVERED DUTY PAID)

Incoterms® 2010

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Terms for multimodal transports

FAS (FREE ALONGSIDE SHIP) FOB (FREE ON BOARD) CFR (COST AND FREIGHT) CIF (COST, INSURANCE AND FREIGHT)

These terms do not apply to any other means oftransport.

Incoterms® 2010

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Electronic communication

Any document referred to may be an equivalent electronicrecord or procedure if agreed or common practice betweenthe contracting parties (A1, B1).

Incoterms® 2010

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Insurance Cover

The seller is obliged to arrange transport insuranceonly under CIP and CIF terms.

But:

This is necessary only for the part of transport, for which the seller carries the costs and the buyer carries the risk.

The seller is obligated to arrange insurance with minimum cover only (Institute Cargo Clause C).

Recommended:

Insurance cover in accordance with Institute Cargo Clause A

Incoterms® 2010

Insert 'This is necessary only for the part of...

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Transfer of risksThe seller bears the risks …

Allocation of costsThe seller bears costs …

Export customs clearance

Import customs clearance

Insurance obligation

EXWEX WORKS

… until goods have been placed by the seller atthe named place, not loaded on transport vehicle.

… until goods have been placed by the seller at the named place, not loaded on transport vehicle.

buyer buyer no obligation

FCA FREE CARRIER

… until goods have been loaded on means of transport provided by the buyer, if named place is seller’s premises.

… until goods are placed at the disposal of the carrier ready for unloading, if named place is not seller’s premises.

… until goods have been loaded on means of transport provided by the buyer, if named place is seller’s premises.

… until goods are placed at the disposal of the carrier ready for unloading, if named place is not seller’s premises.

seller buyer no obligation

CPTCARRIAGE PAID TO

… until goods have been handed over to the carrier contracted by seller.… until goods have been delivered to named place of destination and costs for unloading if these are for seller´s account according to the contract of carriage.

seller buyer no obligation

CIPCARRIAGE AND INSURANC PAID TO

… until goods have been handed over to the carrier contracted by seller. … until goods have been delivered to named place of destination and costs for unloading if these were for seller´s account according to the contract of carriage.

seller buyer

obligation of seller from point of transfer of risk to agreed place of destination

DATDELIVERED AT TERMINAL

… until goods have been unloaded from arriving means of transport and delivered at disposal of the buyer at the named place of destination.

… until goods have been unloaded from arriving means of transport and delivered at disposal of the buyer at the named place of destination.

seller buyer no obligation

DAPDelivered at Place

… until goods have been placed at the disposal of the buyer on the arriving means of transport ready for unloading at agreed point.

… until goods have been placed at the disposal of the buyer on the arriving means of transport ready for unloading at agreed point.

seller buyer no obligation

DDPDELIVERED DUTY PAID

… until goods have been placed at disposal of the buyer readyfor unloading at agreed point.

… until goods have been placed at disposal of the buyer ready for unloading at agreed point and the costs for import customs clearance, duties, taxes and other charges payable upon import of the goods.

seller seller no obligation

FASFREE ALONGSIDE SHIP

… until goods have been placed alongside ship at named port of shipment.

… until goods have been placed alongside ship at named port of shipment. seller buyer no obligation

FOBFREE ON BOARD

… until goods have been placed on board the vessel at the named port of shipment.

… until goods have been placed on board the vessel at the named port of shipment. seller buyer no obligation

CFRCOST AND FREIGHT

… until goods have been placed on board the vessel at the named port of shipment.

… until goods have been delivered to agreed port of discharge and costs for unloading if these are for seller’s account according to the contract of carriage.

seller buyer no obligation

CIFCOST, INSURANCE AND FREIGHT

… until goods have been placed on board the vessel at the named port of shipment.

… until goods have been delivered to agreed port of discharge and costs for unloading if these are for seller’s account according to the contract of carriage.

seller buyer

obligation of the seller from point of transfer of risk to agreed port of

discharge

Incoterms® 2010

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Insurance liability, assumption of risksand costs pursuant to Incoterms® 2010

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Incoterms® 2010

Insurance liability, assumption of risksand costs pursuant to Incoterms® 2010

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