EXPORT IMPORT PROCEDURES AND DOCUMENTATION

(INCOTERMS 2000)

INCOTERMS 2000-An Introduction

• An important tool for determination of the costs and risks being allocated to different parties.

• Year of Introduction-1936.• Last year of updation-2000.• From its year of introduction till the year 2000

the INCOTERMS have been updated for six times.

THE ‘C’ TERMS• They fall under the “Group-C category” of

Incoterms.• The “C terms actually classify the

responsibilities of the seller and the buyer.• The INCOTERMS falling in the ‘C’ category are:1.CFR:Cost and Freight.2.CIF: Cost,Insurance and freight.3.CPT:Carriage paid to.4.CIP:Carriage and Insurance paid to.

CFR-Cost and Freight(…named port of destination)

• Role of the seller:1.To pay cost and freight charges to bring the

goods to named port of destination.2.To transfer the costs incurred during damage to

the goods after the time of delivery to the buyer.

3.This terminology requires the seller to clear all the charges for export.

• Role of the buyer:1.To pay for the import clearance,duties and

taxes.

CIF- Cost,Insurance & Freight(named port of destination)•Role of the Seller :1.To pay for Cost and Freight to bring the goods

to named port of destination.2.To transfer the costs incurred during damage to the goods after the time of delivery to the buyer.3.Procuring the Marine Insurance against buyers risk of loss or damage to goods during the voyage.•Role of the buyer:1.To pay for the import clearance ,and the unloading charges and additional charges if any.

CPT-Carriage paid to(..named place of destination)

• Role of the Seller :

1.Deliver goods to the carrier nominated by him.2.Bear the additional cost of carriage to bring

the goods to the destination point.• Role of the buyer:1.To bear all the risks after the delivery of goods.2.To bear all the additional costs occurring after

the goods have been delivered.

CIP-Carriage and Insurance Paid to(…named place of destination)

• Role of the Seller:1.Deliver goods to the carrier nominated by him.2.Payment of additional cost of carriage necessary

to bring the goods to the destination.3.Procurement of Insurance against buyers risk of

loss or damage done to goods during the carriage.

• Role of buyer:• 1.To pay for import clearance and the unloading

charges of goods.

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