Podcast
Questions and Answers
What is the risk borne by the buyer in CPT terms?
What is the risk borne by the buyer in CPT terms?
- From the port of shipment to the port of destination
- From the seller's premises to the port of shipment
- From the port of shipment onwards (correct)
- From the first carrier to the port of destination
Who covers insurance in CIP terms?
Who covers insurance in CIP terms?
- The insurance company
- The buyer
- The seller (correct)
- The first carrier
What is the point of delivery in CPT terms?
What is the point of delivery in CPT terms?
- The seller's premises
- The first carrier (correct)
- The port of shipment
- The port of destination
What type of clauses are referred to in the content?
What type of clauses are referred to in the content?
Where is the risk transferred to the buyer in CPT terms?
Where is the risk transferred to the buyer in CPT terms?
What does CPT stand for?
What does CPT stand for?
What does CIP stand for?
What does CIP stand for?
Who bears the costs in CPT terms?
Who bears the costs in CPT terms?
Who bears the risk during the whole transport?
Who bears the risk during the whole transport?
When is the buyer at risk under FCA?
When is the buyer at risk under FCA?
What is the period of limitation for apparent loss or damage under the Haag-Visby Rules?
What is the period of limitation for apparent loss or damage under the Haag-Visby Rules?
What is the limitation of liability for loss or damage under the Rotterdam Rules?
What is the limitation of liability for loss or damage under the Rotterdam Rules?
Who is responsible for covering insurance under FCA?
Who is responsible for covering insurance under FCA?
What is the notice of claim period for apparent loss or damage under the Montreal Convention?
What is the notice of claim period for apparent loss or damage under the Montreal Convention?
What is specified in FCA terms?
What is specified in FCA terms?
What is the limitation of liability for loss or damage under the CIM Convention?
What is the limitation of liability for loss or damage under the CIM Convention?
In DPU terms, who covers the insurance until the goods are unloaded?
In DPU terms, who covers the insurance until the goods are unloaded?
What is the role of the seller under FCA?
What is the role of the seller under FCA?
In DPU terms, when is the risk transferred to the buyer?
In DPU terms, when is the risk transferred to the buyer?
What is the notice of claim period for apparent loss or damage under the Haag-Visby Rules?
What is the notice of claim period for apparent loss or damage under the Haag-Visby Rules?
What happens when the goods are placed at the buyer's disposal at agreed time and place?
What happens when the goods are placed at the buyer's disposal at agreed time and place?
What is the main difference between DPU and DDP terms?
What is the main difference between DPU and DDP terms?
What is the seller's responsibility regarding documents under FCA?
What is the seller's responsibility regarding documents under FCA?
What is the period of limitation for loss or damage under the Montreal Convention?
What is the period of limitation for loss or damage under the Montreal Convention?
In DDP terms, who bears the risk during the whole transport?
In DDP terms, who bears the risk during the whole transport?
What is the term for 'Free Carrier'?
What is the term for 'Free Carrier'?
What is the notice of claim period for apparent loss or damage under the CIM Convention?
What is the notice of claim period for apparent loss or damage under the CIM Convention?
What happens to the risk when the goods are unloaded at the agreed place of destination in DPU terms?
What happens to the risk when the goods are unloaded at the agreed place of destination in DPU terms?
What is the period of limitation for loss or damage under the Rotterdam Rules?
What is the period of limitation for loss or damage under the Rotterdam Rules?
In DDP terms, what is the responsibility of the seller?
In DDP terms, what is the responsibility of the seller?
What is the key similarity between DPU and DDP terms?
What is the key similarity between DPU and DDP terms?
In DPU terms, what happens to the costs until the goods are unloaded?
In DPU terms, what happens to the costs until the goods are unloaded?
What is the primary purpose of Incoterms 2020?
What is the primary purpose of Incoterms 2020?
Why is it advisable to state the terms of delivery in the contract of sale and commercial invoices?
Why is it advisable to state the terms of delivery in the contract of sale and commercial invoices?
What is the benefit of using Incoterms 2020?
What is the benefit of using Incoterms 2020?
What is the recommended approach to forming delivery terms?
What is the recommended approach to forming delivery terms?
What is the main reason for using Incoterms 2020?
What is the main reason for using Incoterms 2020?
What is the benefit of agreeing on terms of delivery?
What is the benefit of agreeing on terms of delivery?
What is the purpose of Incoterms 2020 in international trade?
What is the purpose of Incoterms 2020 in international trade?
What is the risk of not using Incoterms 2020?
What is the risk of not using Incoterms 2020?
Flashcards
Incoterms 2020
Incoterms 2020
International commercial terms that define responsibilities and risks between buyers and sellers during transport.
FCA
FCA
Free Carrier — Seller delivers goods to carrier at named place.
CPT
CPT
Carriage Paid To — Seller pays transport to destination.
CIP
CIP
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DPU
DPU
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DDP
DDP
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Notice of Claim
Notice of Claim
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Limitation of Liability
Limitation of Liability
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Haag-Visby Rules
Haag-Visby Rules
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Rotterdam Rules
Rotterdam Rules
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Montreal Convention
Montreal Convention
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CIM Convention
CIM Convention
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Risk allocation
Risk allocation
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Transport cost
Transport cost
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Customs clearance
Customs clearance
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SDR
SDR
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Shipping
Shipping
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Transportation
Transportation
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International Trade
International Trade
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Study Notes
Importance of Incoterms
- Incoterms 2020 are essential in modern transport systems to avoid disputes about where loss or damage occurred during transportation.
- Agreeing on terms of delivery helps to allocate risk between the buyer and seller during the transport chain.
Benefits of Incoterms
- Prevents problems with interpretation in different countries having their own definitions of delivery terms.
- Internationally recognized rules that describe who is responsible for goods in transit and for how long.
- Helps sellers and buyers avoid unnecessary misunderstandings.
- Recognized by authorities and courts around the world.
Notice of Claim and Limitation of Liability
- Notice of claim periods and limitation of liability varies depending on the mode of transport:
- Carriage by Sea (Haag-Visby Rules): 3 days, 1 year, SDR 667/package or SDR 2/kg
- Carriage by Sea (Rotterdam Rules): 7 days, 2 years, SDR 875/package or SDR 3/kg
- Carriage by Air (Montreal Convention): 14 days (21 days in case of delay), 2 years, SDR 22/kg
- Carriage by Rail (CIM Convention): 7 days, 1 year, SDR 17/kg (Domestic SEK 150/kg)
Incoterms 2020
FCA - Free Carrier
- Risk: The buyer bears the risk during the whole transport.
- Costs: The buyer bears the costs.
- Documents: The seller delivers the goods to the first carrier or terminal at an agreed time and place.
CPT - Carriage Paid To
- Risk: The buyer is at risk when the goods have been delivered to the first carrier.
- Costs: The seller pays for transportation to the named place of destination.
- Documents: The seller delivers the goods to the first carrier.
CIP - Carriage and Insurance Paid To
- Risk: The buyer is at risk when the goods have been delivered to the first carrier.
- Costs: The seller pays for transportation and insurance to the named place of destination.
- Documents: The seller delivers the goods to the first carrier and obtains insurance in favour of the buyer.
DPU - Delivered at Place Unloaded
- Risk: The buyer is at risk when the goods have been unloaded at the agreed place of destination.
- Costs: The seller pays for transportation and unloading.
- Documents: The seller delivers the goods to the named place of destination.
DDP - Delivered Duty Paid
- Risk: The seller bears the risk during the whole transport.
- Costs: The seller pays for transportation, customs clearance, and duties.
- Documents: The seller delivers the goods to the named place of destination, cleared for import.
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Description
Understand INCOTERMS 2020 rules for modern transport systems, including how to avoid disputes concerning loss or damage during delivery. Learn how to state delivery terms in contracts of sale and commercial invoices.
