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Notes:1) Incoterms must always be accompanied by a “named place” including city, province/state and country. The International Chamber of Commerce updates Incoterms
every ten years, most recently in 2010. Because the implications and interpretations differ between publications, the year of the revised publication should also be stated. Example of correct Inco statement: FOB “Houston, Texas, USA Inco 2010.”
2) Incoterms identify risk and cost of the seller and buyer, but to not identify title transference.
3) All reference to the cost of “customs clearance” includes not only duty and/or other government levy, but also the administrative costs associated with fulfilling that process.
4) The exporter and/or importer may or may not be the seller or buyer. Exporter and importer stati are specifically governed by the particular laws of the country of export and country of import.
2010 Incoterms Interpretation(Chart of Responsibility)
Incotermsand
Services
EXWEx Works
Any Transport Mode Sea/Inland Waterway Transport Any Transport Mode
namedplace
FCAFree
Carrier
namedplace
FASFree
AlongsideShip
namedport of
destination
FOBFree onBoard
namedport of
destination
CFRCost andFreight
namedplace of
destination
CIFCost, Insurance,
& Frieght
namedplace of
destination
CPTCarriage Paid To
namedplace of
destination
CIPCarriage
Insurance Paid To
namedport of
destination
DATDelivered at
Terminal
namedplace
DAPDeliveredat Place
namedport of
destination
DDPDelivered Duty Paid
namedplace of
destination
Packaging BUYER OR SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER
LoadingCharges BUYER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER
Delivery toPort/Place BUYER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER
Export Duty & Taxes BUYER SELLER* SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER
Origin Terminal Charges BUYER BUYER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER
Loading on Carriage BUYER BUYER BUYER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER
Carriage Charges BUYER BUYER BUYER BUYER SELLER SELLER SELLER SELLER SELLER SELLER SELLER
Insurance BUYER BUYER BUYER BUYER BUYER SELLER SELLER
Destination Terminal Charges BUYER BUYER BUYER BUYER BUYER BUYER SELLER SELLER SELLER SELLER SELLER
Delivery to Destination BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER SELLER SELLER
Import Duty & Taxes BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER SELLER
BUYER OR SELLER
BUYER OR SELLER
BUYER OR SELLER
BUYER OR SELLER
Seller’s Premises
Exportdocuments
Delivered at named place of:Frontier / Terminal / Quey
Loading atPort
Ship’s Side
On Board Ship’s Side Discharging
Delivered at named place of:Destination
Importdocuments
Buyerspremises
General Cargo loaded in wagon/container
EXWEx Works
FASFree Alongside Ship
FOBFree On Board
CFRCost and Freight
CIFCost, Insurance and Freight
CPTCarriange Paid To
DATDelivered At Terminal
DAPDelivered At Place
DDPDelivered Duty Paid
CIP
RAIL
ROAD
BARGE
SEA
AIR
Loaded at seller’s premises
Loaded at carrier premises
Loaded at carrier premises
Loaded at transporter’s terminal
Port of departure
Port of departure
Named port of destination
Named place of destination
Named port of destination
Named place of destination
Named place of destination
DAT - DAP - DDP for any mode of transportation
Remark: For Ro/Ro and Containers select FCA instead of FOB
Loaded at seller’s premises
BUYERCARGOTERMINAL
CARGOTERMINAL
DOCUMENT DOCUMENT
Critical Points In International Transport
LegendRiskThe possibility that an event may occur which could cause loss or damage to the goods is a ‘Risk.’ Buyers and sellers protect themselves against risks by insurnace.
CostsCover all costs except cost of Doc. and insurance. Sales and Purchase contracts should clearly state which costs are for account of buyer and seller.
Buyer’s Risk Buyer’s Costs
Seller’s Risk Seller’s Costs
FC
A…
Free
Car
rier M
ultim
odal
Transportation Container Specifications
* Container specifictions may vary slightly depending on the steamship line or manufacturer.
** Tare weight differentiates within equipment series.
*** Payload subject to legal road weight limitations. Equipment is subject to availability. Not all types of equipment ar available in all trade lanes.
****48’ and 53’ containers only available for Puerto Rico service.
Equipment Interior Dimensions* Door Opening Top Opening Tare Weight**
Cubic Capacity Payload***
20’ Dry Freight L: 592 cm 233 in. W: 229 cm 90 in. 1,900 kg 33.0 cbm 22,100 kgW: 234 cm 92 in. H: 228 cm 90 in. 4,189 lbs 1,165 cu. ft. 48,721 lbsH: 238 cm 94 in.
40’ Dry Freight L: 1,205 cm 474 in. W: 228 cm 90 in. 3,084 kg 67.3 cbm 27,396 kgW: 234 cm 92 in. H: 228 cm 90 in. 6,799 lbs 2,377 cu. ft. 60,397 lbsH: 238 cm 94 in.
40’ High Cube Dry L: 1,206 cm 475 in. W: 234 cm 92 in. 2,900 kg 76.0 cbm 29,600 kgW: 235 cm 92 in. H: 259 cm 102 in. 6,393 lbs 2,684 cu. ft. 65,256 lbsH: 268 cm 106 in.
45’ High Cube Dry L: 1,358 cm 535 in. W: 234 cm 92 in. 3,900 kg 85.7 cbm 28,600 kgW: 235 cm 92 in. H: 259 cm 102 in. 8,598 lbs 3,025 cu. ft. 63,052 lbsH: 269 cm 106 in.
48’ High Cube Dry**** L: 1,448 cm 570 in. W: 249 cm 98 in. 4,355 kg 98.3 cbm 25,340 kgW: 249 cm 98 in. H: 271 cm 106.5 in. 9,600 lbs 3,470 cu. ft. 56,350 lbsH: 271 cm 106.5 in.
53’ High Cube Dry**** L: 1,600 cm 630 in. W: 249 cm 98 in. 4,876 kg 111.8 cbm 25,805 kgW: 249 cm 98 in. H: 271 cm 106.5 in. 10,750 lbs 3,947 cu. ft. 56,890 lbsH: 271 cm 106.5 in.
20’ Reefer L: 543 cm 214 in. W: 229 cm 90 in. 2,940 kg 27.5 cbm 24,060 kgW: 227 cm 89 in. H: 219 cm 86 in. 6,482 lbs 971 cu. ft. 53,043 lbsH: 224 cm 88 in.
40’ Reefer L: 1,121 cm 441 in. W: 222 cm 87 in. 4,840 kg 54.9 cbm 25,640 kgW: 225 cm 88 in. H: 212 cm 83 in. 10,670 lbs 1,939 cu. ft. 56,526 lbsH: 218 cm 86 in.
40’ High Cube Reefer L: 1,163 cm 458 in. W: 229 cm 90 in. 4,430 kg 66.9 cbm 28,070 kgW: 229 cm 90 in. H: 254 cm 100 in. 9,766 lbs 2,363 cu. ft. 61,883 lbsH: 251 cm 99 in.
45’ High Cube Reefer L: 1,310 cm 516 in. W: 229 cm 90 in. 5,200 kg 75.4 cbm 27,300 kgW: 229 cm 90 in. H: 254 cm 100 in. 11,464 lbs 2,663 cu. ft. 60,186 lbsH: 251 cm 99 in.
20’ Open Top L: 592 cm 233 in. W: 229 cm 90 in. L: 543 cm 214 in. 2,174 kg 31.6 cbm 21,826 kgW: 234 cm 92 in. H: 225 cm 89 in. W: 222 cm 87 in. 4,793 lbs 1,116 cu. ft. 48,117 lbsH: 229 cm 90 in.
40’ Open Top L: 1,204 cm 474 in. W: 228 cm 90 in. L: 1,159 cm 456 in. 4,300 kg 64.0 cbm 26,181 kgW: 234 cm 92 in. H: 228 cm 90 in. W: 216 cm 85 in. 9,480 lbs 2,260 cu. ft. 57,720 lbsH: 227 cm 89 in.
20’ Flat Rack L: 566 cm 223 in. 2,530 kg 21,470 kgW: 244 cm 96 in. 5,578 lbs 47,333 lbsH: 233 cm 92 in.
40’ Flat Rack L: 1,208 cm 476 in. 5,480 kg 25,000 kgW: 244 cm 96 in. 12,081 lbs 55,115 lbsH: 210 cm 83 in.
20’ Open Side/Open Top L: 593 cm 233 in. W: 224 cm 88 in. L: 535 cm 211 in. 2,775 kg 33.0 cbm 21,225 kgW: 232 cm 91 in. H: 228 cm 90 in. W: 212 cm 83 in. 6,118 lbs 1,095 cu. ft. 46,792 lbsH: 226 cm 89 in.
FCA Seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller’s premises, the seller is responsible for loading. If delivery occurs at any other place, the seller is not responsible for unloading. This term may be used irrespective of the mode of transport, including multi-modal transport.
FAS Seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss or damage to the goods from that moment. The FAS term requires the seller to clear the goods for export.
FOB Seller delivers when the goods pass the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. This term can be used only for sea or inland waterway transport. If the parties do not intend to deliver the goods across the ship’s rail, the FCA term should be used.
CFR Seller delivers when the goods pass the ship’s rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination BUT the risk of loss or damage to the goods, as well and any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. The CFR term requires the seller to clear the goods for export. This term can be used only for sea and inland waterway transport. If the parties do not intend to deliver the goods across the ship’s rail, the CPT term should be used.
CIF Seller delivers when the goods pass the ship’s rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination. The CIF term requires the seller to clear the goods for export. This term can be used only for sea and inland waterway transport. If the parties do not intend to deliver the goods across the ship’s rail, the CIP term should be used.
CPT Seller delivers the goods to the carrier nominated by him but the seller must, in addition, pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any other costs occurring after the goods have been so delivered. If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export. This term may be used irrespective of the mode of transport including multi-modal transport.
CIP Seller delivers the goods to the carrier nominated by him but the seller must, in addition, pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any other costs occurring after the goods have been so delivered. However, in CIP, the seller also has to procure insurance against the buyer’s risk of loss or damage to the goods during the carriage. Consequently, the seller contracts for insurance and pays the insurance premium. If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The CIP term requires the seller to clear the goods for export. This term may be used irrespective of the mode of transport including multi-modal transport.
DAT Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. “Terminal” includes quay, warehouse, container yard or road, rail or air terminal. Both parties should agree the terminal and if possible a point within the terminal at which point the risks will transfer from the seller to the buyer of the goods. If it is intended that the seller is to bear all the costs and responsibilities from the terminal to another point, DAP or DDP may apply.
DAP Seller delivers the goods when they are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. Parties are advised to specify as clearly as possible the point within the agreed place of destination, because risks transfer at this point from seller to buyer. If the seller is responsible for clearing the goods, paying duties etc., consideration should be given to using the DDP term.
EXW Seller delivers when he places the goods at the disposal of the buyer at the seller’s premises or another named place (i.e., works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle. This term thus represents the minimum obligation for the seller, and the buyer has to bear all costs and risks involved in taking the goods from the seller’s premises.
DDP Seller delivers the goods to the buyer, cleared for import and not unloaded from any arriving means of transport, at the named place of destination. The seller has to bear all the costs and risks involved in bringing the goods thereto including, where applicable, any “duty” (which term includes the responsibility for and the risk of the carrying out of customs formalities and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination. If the parties wish the buyer to bear all risks and costs of the import, the DDU term should be used. This term may be used irrespective of the mode of transport, but when delivery is to take place in the port of destination on board the vessel or on the quay (wharf), the DES or DEQ terms should be used.
2010 Incoterms Definitions
1-866-208-0167 • WWW.AvERITTEXPRESS.COM
1415 Neal St. • PO Box 3166Cookeville, TN 38502-3166
No other LTL carrier in the South has been recognized more often by Logistics Management’s Quest for Quality program.
SM
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