Questions and Answers
INCOTERMS 9 E TERMS F TERMS C TERMS D TERMS 10 11 TERMS FOR ANY TRANSPORT MODE E TERMS EX WORKS…NAMED PLACE (usually the seller’s premises) Abbreviation: EXW Transport mode: all Minimum requirements for the seller Loading is buyer’s responsibility Pre-carriage is buyer’s responsibility Main-carriage is buyer’s responsibility 12 1. TERMS FOR ANY TRANSPORT MODE EXW – EX WORKS (… named place of delivery) The Seller’s only responsibility is to make the goods available at the Seller’s premises. The Buyer bears full costs and risks of moving the goods from there to destination. 13 16 Control, Packing, Marking: . Export Clearance/licences: . Loading :. Transportation (Freight) :. Insurance :. Unloading :. Import Clearance/licences :. 18 F TERMS FREE CARRIER…NAMED PLACE (usually the seller’s Premises or a buyer.
Study Notes
Transportation Terms
- Exporter: Seller
- Importer: Buyer
- Insurance: Protection against future loss/damage
- Routing: Specified direction
- Departure: The act of departing (take off, leaving)
- Destination: The act of arriving at a certain place (arrival)
INCOTERMS
- INCOTERMS: International Commercial Terms
- Created by: International Chamber of Commerce (ICC) for use in sales contracts
- Number of terms: 11
- Purpose:
- Define responsibilities of Buyer and Seller
- Allocate delivery costs
- Assume delivery risks
INCOTERMS Function
- Divide costs, risks, and responsibilities between seller and buyer
- Reduce potential misunderstandings between buyer and seller
INCOTERMS Limitations
- INCOTERMS are not law
- Must be specified in sales contracts to apply
- Normally cited in sales quotations and purchase orders
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