Incoterms 2010 english

International Chamber of Commerce ICC'B6 Allocatìon o f costs The buyer must: a pay aỉl c jsts relating to the goods from the time they have been delivered hs envisaged in A4; b pay any

International Chamber of Commerce (ICC)

Foreword 118

Introduction .119

INCOTERMS® 2010 Rules for any mode or modes of transport EXW 129

FCA 137

CPT 147

CIP .150

DAT .167

DAP 175

D D P 183

Rules for sea and inland waterway transport FAS .193

FOB 201

C F R .2 09 CIF 219

Incoterms® 2010 1 17

International Chamber of Commerce (ICC)

FOREWORD

By Rajat Gupía, ICC Chairman

The gỉobaỉ econom y has given businesses broader access than ever before

to markets all over the world Goods are sold in more countries, in larger quantities, and in greater variety But as the volume and com plexity o f global sales increase, so do possibilities for m isunderstandings and costly disputes when sale contracts are not adequately draíted

The incoterm s® ruỉes, the ICC rules on the use o f domestic and intem ationaỉ trade term s, facilitate the conduct o f ^lobal trade Reíerence

to an Incoterm s® 2010 rule in a sale contract clearỉy deílnes the parties' respective obligations and reduces the risk o f legal com plications

Since the creation o f the Incoterms rules by ICC in 1936, this globally

a c c e p te d c o n tra c tu a l Standard has be e n reg u la riy u p d a te d to k e e p pa c e

with the developm ent o f I n t e r n a t i o n a l trade The ỉncoteniìs® 2010 rules take account o f the continued spread o f custom s-free zones, the increased use o f electronic Communications in business transactions, heightened concem about security in the movement o f goođs and chanoes in transport

practices ỉncoterm s-^ 2 0 Ì0 updates and consolidates the 'd eliv ered ’ rules,

reducing the tptai num ber o f rules íroni 13 to 1 K and offers a sim pler and

clearer presentation o f all the rules Ịn c o te rm sề 2010 is also the ílrst

version o f the Incoterms ruỉes to make all references to buyers and selỉers gender-neutraỉ,

The broad expertise o f ICC's Commission on Com m ercial Law and Practice, whose m em bership is dravvn from all parts o f the world and all trade seclors, ensures that the Incoterms® 2010 rules respond to busincss needs everywhere

ICC w ould like to express its gratitude to the members o f the Com m ission, chaired by Fabio Bortolotti (Italy), to the D raftina Group, which com prised Charles Debattista (Co-Chair, UK), Christoph Martin Radtke (Co-Chair, Prance), Jens Bredow (G erm any), iohnny Herre (Sweden), Daviđ Lowe (ƯK), Lauri Railas (Pinland), Frank Reynolds (US), and M iroslav Subert (Czech Republic), and to Asko Raty (Pinland) for assỉstance with the images depicting the 1 ] rules

The Incoterm s® ruỉes explain a set o f íhrce-ỉetter trade term s reílectine business-to-business practice in contracts for thc sale o f soods The incoterm s rules describe rnainly ihe tasks, costs and risks invoỉved in the deliver> o f eoods from sellers to buvers

International Chamber of Commerce ÍICC)

How to use the Incoterm s® 2010 rules

1 Incorporate the Incoterms® 2010 rules into your contract o f sale

ỉf you want the ỉncoíermsíg;' 2010 rules ro apply to vour contract, you

should make this clear in the contĩrict throueh such \vords as "[the chosen Incoterm s n iỉe incỉĩiding ỉhe nam ed pỉace /o ỉk n v e d by]

Incoterm s® 2010"

2 Choose the appropriate Incoterms rule

The chosen Incoterm s ruie needs to be appropriate to the soods, to thi, means o f their transport, and above all to whether the parties intend to pui additional obligalions, for example such as the obligation to organize carriage or Insurance, on the seller or on the buyer The G uidance Note to each íncoterm s rule contains infomiation that is pailicularlv he!pful when making this choice W hichever íncoterms rule is chosen the parties should be aw are that the ịníerpretation o f their contract may wel! be innưenced by custom s particular to the port or place beiníi used

3 Specity your place or port as precisety as possible

7'he chosen Incoterm s rule can vvork onìy ir the parties name a pỉace or poit, and will \vork besl iĩltìe parlles speciỉy tlie place or porl as precisely

as possible

A ^ood exam ple o fsu c h precision wouid be;

“ F C A 38 C ours Albert 1 er, Paris, Prancc Incoíerms® 2010”

Under the Incoterm s rules Ex Works (EXW), Free C arrier (FCA), Delivered at Terminal (DAT), Deỉivered at Place (DAP), Delivered Duty Paid (DDP), Free Alongsỉde Ship (FAS), and Free on Board (FOB), the named place is the place \vhere delivery takes place and w here risk passes from the seller to the buỵer Under the ỉncoterms rules C arrìage Paid To (CPT), C arriage and Insurance Paid To (CIP) Cost and Preight (CFR) and

Incoterms® 2010 1 1 9

Cost, Insurance and Preight (CỈF), the named place diíĩers from the piace

o f delivery Under these four ỉncoterm s ruỉes, the named place is the place

o f destination to vvhich carriage is paid Indications as to place or destination can helpfully be further specified by statiim a precise point in that place or destination in order to avoid doubí or ar^ument

4 Remember that InCoterms rules do not give you a complete Contract of sale

Incoterms rules do say which party to the sale contract has the obligation

to make carriage or insurance arrangem enls, when the seỉler delivers the goods to the biiyer, and which costs each party is responsibỉe for Incoterms rules, hovvever, say nothing about the price to be paid or the method o f its payment N either do they deal with the transíer o f ONvnership o f the goods, or the consequences o f a breach o f contrací These matters are normaỉly dealí vviỉh throuuh express lerm s in the contract o f sale or in the la\v governing that contract The parties shouỉd

he aware that mandatory locaỊ law may override any aspect o f the sale contract, including the chosen Incoteim s rule

IMain ĩcatures o f the Incoterm s® 2010 ruies

1 Two new ỉnCoterms rules - DAT and DAP - have replaced the Incoterms 2000 rules DAF, DES, DEQ and DDU

The num ber o f Incoterms rules has been reduced írom 13 to Ị 1 This has been achieved by substituting tw o new rules that may be used irrespective

o f the agreed mode o f transport - DAT, Delivered at Terminaỉ, and DAY, Delivered at Place - for the Incoterms 2000 ruỉes DAF, DES, DEQ and DDU

Under both nevv rules, delivery occurs at a named destination: in DAT, at the buyer’s disposal unloaded from the arriviníì vehicle (as under the tbĩTĩìer DEQ rule); in DAP lìkewise at the buyer's disposa!, bui ready tbr unloadỉng (as under the former DAF, DES and DDU rules)

The nevv rules make the Incoterms 2000 rules DES and DEỌ supertluous The named terminal in DAT may well be in d pdrt, and DAT can therefore safeỉy be useđ in cases v/hcic the Incoterms 2000 ruỉe DEQ once was Likevvise, m e a i T Ì v í n g “ v e h i c l e ” under DAP may w e l l b e a ship and the named place o f destination may well be a port: consequently, DAY can safelỵ be used in cases where the Incoterms 2000 rule DES once was These new rules, like their predecessors, are '‘deiivered” , with the seller bearing all the costs (other than those related to import clearance, vvhere appỉicable) and risks ínvolved in bringing the ^oods to the named place o f destination

Internatỉonaỉ Chamber of Commerce (ICC)

2 C lassification of the 11 Incoterms® 2010 rules

The 11 ỉncolenns® 2010 rules are presented in t\vo distinct classes;

RULES FOR ANY MODE OR MODES 0 F TRANSPORT

International Chamber of Commercfi (ICC)

R U LES FOR SEA AND INLAND VVATERVVAY TRAN SPO RT

The íìrst class includes the seven ỉncoterms® 2010 ruỉes thai can be used irrespective o f the mode o f transport selecteđ and irrespective o f whether one or more than one mode o f transport is employed EXW, FCA, CPT, CIP DAT, DAP and DDP belong lo this cỉass 'íh ey can be used even when there is no maritime transport at aỉl It is important to remember,

hovvever, that these rules can be used in cases \vhere a ship is used íbr

part o f the carriage

In the second cíass o f Incoteims® 2010 ruies, the poịnt o f delivery and

the place to which the goods are carried to the buyer are both ports, hence

the label “sea and inỉand waterway" rules FAS, í'OB, CFR and CiF belong to this class Under the !ast three incolcrms rules, al! mention o f the sh ip 's raiỉ as the point o f delivety has been omiited in preíerence for the goods being delivered when they are “on board” the vessel This more closely reílects modern commercia: reaỉity and avoids the rather dated image o f the risk svvinging to and fro across an imaginary perpendicular line

lncotermsfS)2010 121

3 Rules fo r dom estic and international trade

Incoterms ruỉes have tradiíionally been used in internaíionaỉ saỉe

contracts where goods pass across nationaỉ borders In various areas o f the vvorld, however, trade blocs, like the European U nion, have made border forma!ities between different countries ỉess siiíỉiiíícant Consequently, the subtitle o f the Incoterm s® 2010 rules íorm ally recognizes that they are available for application to both international and domestic sale contracts As a result, the Incoterm s® 2010 rules clearly State in a num ber o f places that the obligation to compỊv vvith export/ import forma!ities exists only where applicable

Two deveỉopm ents have persuaded ICC that a m ovem ent in this direction

is timely Pirstly, traders com m only use Incoterms rules for purel> domestic sale contracts The second reason is the ^reater vvillingness in the United States to use Incoterms rules in dom estic trade rather than the former Uniform Commercial Code shipment and delivery terms

4 Guìdance Notes

Before each Incoterms® 2 0 ]0 rule you vviỉl flnd a G uidance Nole The Guidance Notes explain the ĩundam entals o f each Incoterm s rule, such ds when it should be used, when risk passes, and how costs are allocated betvveen seiler and buyer The Guidance Notes are not part o f the actua Incoteim s® 2010 rules, but are intended to help the user accurately and eíTiciently steer tow ards the appropriate Incoterm s rule for a paríiculai transaction

6 Insurance cover

The Incoterms® 2010 rules are the fĩrst version o f the Incoterms rules since the revision o f the Institute Cargo Clauses and take account oí' alterations made to those clauses The Incoterm s® 2010 rules place information duties relating to Insurance in articles A3/B3, which deal with contracts o f carriage and insurance These provisions have been moved from the more generic articles found in articies AIO/BIO o f the Incoterms

2000 rules The language in articles A3/B3 relating to Insurance has also been aỉtered with a view to clarifying the parties’ obligations in this

International Chamber of Commerce (ICC)

7 Security-reỉated clearances and Jnform ation required fo r such clearances

There is heightened concern novvadays aboưí ecuDly in the movement o f goods requiring verification thai the goods du noi pose a threat to !ife o r property for reasons other than their inhercní nature Therefore, the Incoterms® 2010 rules have allocated oblií^at.ons between the buyer and seỉler to obtain or to render assistance in obtaining security-relaled cỉearances, such as chain-of-custody informaiion in articles A2/B2 and

A 10 /B 10 o f various Incotenns ruies

8 Terminal handling charges

U nder Incoterm s rules CPT, C!P CFR CỈF DAT, DAP and DDP, the selỉer must make arranííements for the carria»e of the goods to the asreed

destination While the freight is paid by the seỉỉer, it is actually paid fo r by

the buyer as freight costs are normaỉly included by the seMer in the totai selling price The carrỉage costs wilỊ sometimes include the costs o f

h a n d li n g a n d m o v i n s the a oods within port or Container te r m in a l facilities

and the carrier or tenninal operator may \vell charge these costs to the buyer who receives the goods ín these circumstances, the buyer wili want

to avoid paying for the same Service t\vice: once to the seller as part o f the total selling price and once independently to the carrier or the terminal operator The Incoterms® 2010 rules seek to avoid this happening by clearly allocating such costs in articles A6 B6 of the relevant Incoterms rules,

9 s trin g sales

!n the sale o f com m odities, as opposed to the saie ofm anufactured goods,

cargo is frequentỉy sold severaỉ times á u rìm traíisit “ down a string"

When this happens, a selier in the middỉe o f ihe string does not "ship” the goods because íhese havc already beeri shipped by the íìrst seller in the string The seller in the middle o f the síring tliereíore performs ils obligations tovvards its buyer not by shippinii the goods, biil by ''procuring”

^oods that have been shippeíl For clarifìcation purposes, Ịncolerms(iC'

2010 rules include the obligation to “ procure uoods shipped’' as an alternative to the obligation to sliip goods in thc rclevant Incoterms rules

Variants o f Incoterm s ruỉes

Som etim es the parties want to alter an Ịncoterms rule The Incotemis®

20 ỉ 0 rules do not prohibit such alteration, but íhcre are dangers in so doing In order to avoid any unvvelcome surpriscs tlie parties woưld need

to m ake the intended eíĩect o f such alteraiions extremely clear in their contract Thus, for example if the allocaíion o f costs in the ỉncoterms®

2 0 1 0 r u ỉ e s is a ỉ t e r e d in t h e c ont ra ct , the pa r ti e s s h o u l d a l s o c l e a r l y State vvhether they intend to vary the point at \vhich the risk passes from seller

to buyer

International Chamber of Commerce (ICC)

incoterms® 2010 123

Status o f this introduction

This introduction gives general inforrttạtion on the use and interprctation

o f the Incoterms® 2010 ruies, but does not fonn part o f those ruỉes

Expỉanation o f terms used in the Incoterms® 2010 rules

As in the Incoterms 2000 rules, the seller^s and buyer’s obligations are presented in mirror fashion, reílecting under column A the seller’s obligations and unđer column B the b u y er’s obligations These obligations can be carried out personally by the selỉer or the buyer or sometimes, subject to terms in the contract or the applicable la\v, ihrouiíh interm ediaries such as carriers, íreight forwarders or other persons nominated by the seller or the buyer for a speciíĩc purpose

The texí o f the Incoterms® 2010 rules is meant to be self-explanatorv' However, in order to assist users the foỉỉowing text sets out ouidạnce as to the sense in which seỉected term s are used throughout the docum ent

C a r rie r: For the purposes o f the Incoíerms® 2010 ruies the carrier is the party with whom carriage is contracted

C u sto m s form alities: These are requirements to be met in order to comply vvith any appỉicable customs regulations and may include documentary, security, information or physicaỉ inspecrion obligations

D elivery: This concept has multiple meanings in trade Ịaw and practice,

but in the ỉncoterm s® 20 ỉ 0 rules, it is used to indicate where the risk oi'

loss o f or dam age to the goods passes from the seller to the buyer

D eỉivery docum ent; This phrase is now used as the heading to ariicle A8

It means a docum ent used to prove that delivery has occurred For manỵ

o f the Incoterm s® 2010 rules, the delivery docum ent is a transporí đocum ent or corresponding eỉectronic record Hovvever, vvith EXW, FCA, FAS and FOB, the delivery docum ent may simpiy be a receipt A deliveiy docum ent may also have other functions, for example as part o f Ihe mechanism for payment

E lectronic re c o rd o r p ro c e d u re : A set o f inĩormation constituted o f one

ờr more electronic messages and, where applicable, being íunctionally equivalent with the corresponding paper document

P ack ag ỉn g : This word is used ío rd iíĩe re n t purposes;

1 The packaging o f the goods to comply vvith any requirem ents under the contract o f sale

International Chamber of Commerce (ICC)

3 The stowage o f the packaged goods vvithin a C ontainer or other means o f transport.

In the ỉncoterm s® 20 ì 0 rules, packaging means both the fírst and second

o f the above The Incoterms® 2010 rules do not deal with the parties’

o b l ig a ti o n s for stovvage w ịth ịn a Container and th e re fo re , w h e r e rele v an t,

the parties shouỉd deal with this in the sale contract

Internationa! Chamber of Commerce (ICC)

ì ^ l^m m erce (ICC)

« :j r

Internaíonal Chamber of Cornmerce (ICC)

RULES PORANY

MODE OR MODES OF TRANSPORT

Incoterms® 2010 1 2 7

International Chamber of Commerce (ICC)

t

EX VVORKS

EXW (insert named place o f delivery) Incoterms® 2010

International Chamber of Cofnmeo:e (ICC)

export, w here such clearance is applicable

The parties are well ađvised to speciíy as ciearly as possible the point within the named place o f delivery, as the costs and risks to that point are for the account o f the seller The buyer bears all costs and risks involved

in taking the goods from the agreed point, if any, at the named place o f delivery.

EXW represenls the minimum obỉigation for the seỉler The rule should be used with care as;

a) The seller has no obligation to the buyer to load the goods, even though

in practice the seller may be in a better position to do so If the seller does toad the goods, it does so at the buyer’s risk íinđ expense In cases

w here the seller is in a better position to load the goods, FCA, vvhich obliges the seller to do so at iís own risk and expense, is usually more

appropriate.

b) A buyer who buys from a selỉer on an EXW basis for export needs to

be aware that the seller has an obligation to provide only such assistance as the buyer may require to effect that export: the seller is not bound to organize the export clearance Buyers are therefore weỉ!

advised not to use EXW if they cannot directly or indirectiy obtain

export clearance.

c) The buyer has Hmited obligations to provide to the seller any inĩoĩmation regarding the export o f the goods Hovvever, the seller may need this iníormation for, e.g., taxation or reporting purposes.

íntematỉonal Chamber of Commerce ỢCC)

A THE SELLER’S OBUGATIONS

A I General obllgatỉons o f the seller

The seller m ust provide the goods and the com m ercial invoice in

coníormity with the contract o f sale and any oứier evidence o f coníormity ứiat may be required by ứ>e conưact.

Any document reíerred to in Al - Al O may be an equivalent electronic recorđ ot procedure if agreed between the parties or customary.

A2 Ltcences, authorỉzatlons, security clearances and o ơ ie r torm alltíes

Where applicable, ứie selỉer must provide the buyer, at ửie buyer’s request, risk and expense, assistance in obtaining any export licence,

or otìier oữĩciai auứiorization necessary for ứie export o f the goods.

Where appltcable, the seller must provide, at the buyer’s request,

nẹk and expense, any iníormaíion in the possession o f ứie selỉer that

is required for the security clearance o f the goods.

A3 Contracts o f cầrriage and Insurance

A4 Delivery

The seller must deliver the goods by placing them at the disposal o f the buyer at the agreed point, i f any, at tíie named place o f delivery, not loaded on any collecting vehicle If no specific point-has been agreed vvithin the named place o f delivery and i f there are several points available, the seller may select the point that best suits its puq>ose The seller must deliver the goods on ứìe agreed date or within the agreed periođ.

International Chamber of Commerce (ICC)

BTHE BUYER’S OBLIGATỈONS

B1 General obligatlons o f the buyer

The buyer must pay the price of the goods as provided in the contract o f sale.

Any document referred to in Bl-BlO mav be an equivalent elecừonic record or procedure if agreed betvveen the parties or customary.

B2 Licences, authorizations, security clearances and other formaỉitỉes

Where applicabỉe, it is up to the buyer to obtain, at its own risk and expense, any export and import ỉicence or other oíTicial authorization and carry out all customs formalities for the export o f the goods.

B3 Contracts o f carrỉage and Insurance

Internátianal Cham‘Der of Commerce (ICC)

A5 Transfer o f risks

The selỉer bears all risks o f loss o f or damage to the goods unti! they have been deliveređ in accordance wiứi A4 with the exceptian o f loss-or damage in the circumstances described in B5.

A6 A llocation o f costs

The seller must pay all costs relating to the goods until they have been delivered in accordance with A4, other than those payable by the buyer as envisaged in B6.

A7 Notices to the buyer

The seller must give the buyer any notice needed to enable ứie buyer

to take delivery o f the goods.

A8 Delivery document

The seller has no obỉigation to the buyer.

International Chamber of Commerce (ICC'

B6 Allocatìon o f costs

The buyer must:

a) pay aỉl c jsts relating to the goods from the time they have been delivered hs envisaged in A4;

b) pay any additionaỉ costs incurred by failing either to take deliveiy

o f the goods when they have been placed at its disposal or to give apprcpriate notice in accordance with B7, provided that the gaods

have been clearly identified as ứie contract goods;

c> pay, vvhere applicable, all duties, taxes and other charges, as well

ÍS the costs o f carrying out customs íormalities payable upon export; and

d) reimburse all costs and charges incurred by the seller in providing assistance as envisaged in A2.

Đ7 Notices to the seller

The buyer m ust, w henever it is enlitled to determine the tim e within

an agreed period and/or the point o f taking deỉivety within the

nam ed pỉace, give the seller suíTicient notice thereoí

B8 Prooí o f delivery

The buyer must provide the seỉler with appropriate evidence o f having taken delivery.

‘International Chamber of Commerce (ICC)

A9 Checking -packaging -m arking

The seiler must pay the costs o f those checking operations (such as checking quality, measuring, vveighing, counting) that are necessary for the puq^ose o f delivering the goods in accordance with A4.

The seller must, at its own expense, package the goods, unless it is usual for the particular trade to transport the type o f goods sold unpackaged The seỉler may package the goods in the manner appropriate for their transport, unless the buyer has notiĩied the seller o f specific packaging requirements befcre the contract o f saỉe

is concluded Packaging is to he marked appropriately.

A10 Asslstance with inforniation and related costs

The seller must, where appỉicable, in a timely manner, provide to or render assistance in obtaining for the buyer, at the buyer’s request, risk and expense, anỳ documents and iníormation, including security-related information, that the buyer needs for the export and/

or import o f the goods and/or for their transport to the final destination.

International Chamber of Commerce (iCC)

Đ9 tnspectlon o f goods

The buyer must pay the costs o f any mandatory pre-shipment inspection, including inspection mandated by the authorities o f the countiy o f export.

Đ10 Asslstance w ith ìnfonmation and related costs

The buyer must, in a timely manner, advise the seller o f any security information requirements so that the seỉler may comply with AIO.

The buyer must reimburse the selỉer for a|Ị costs and c h ^ e s incurred by the seller in providing or rendering assistance in obtaining documents and inĩormation as envisaged in AIO.

i : _ o

International Chamber of Commerce (ICC)

International Chamber of Commerce (ICC)

I f the parties intend to deliver the goods at the selỉer’s premises, they shouid ìdentiíy the address o f ứiose premises as ứie named place o f deỉivery If, on the other hand, the parties intend the goods to be delivered

at another place, they must identiíy a dìfFerent specific place o f đelivery

FCA requires the selier to clear the goods for export, where applicable However, the seller has no obligation to clear the goods for import, pay any ỉmport đuty or carry out any import customs íormalities.

A THE SELLER’S OBLIGATIONS

A I General oblỉgations o f the seUer

The seller must provide ửie goods and the commercial invoice in conformity with the contract o f saĩe and any other evidence o f conformity that may he required by the contract.

Any document reĩeired to in AI-AIO may be an ẽquivalent eỉectronic record or procedure if agreeđ between the pãrties or customary.

A2 Lỉcences, authorizations, securíty clearances and o th e r formalítỉes

Where applicable, the seller must obtain, at its own risk and expense, any export licence or other oữĩciaỉ authorization and carry out all customs íbrmalities necessary for the export o f tíie goods.

International Chamber of Commerce (ICC)

A3 Contracts o f carriage and ỉnsurance

a) Contract o f carriage

The seller has no obligation to the buyer to make a contract o f caưiage Hovvever, if requested by the buyer or if it is commercial practice and the buyer does not give an instruction to the conừary in due time, the seller may contract for carriage on usual terms at the buyer’s risk and expense In either case, the seller may decline to

make the contract o f carriage and, if it does, shall prom ptly notiíy

the buyer.

b ) C ontract o f I n s u r a n c e

The seỉler has no obligation to the buyer to make a conừact o f

request, risk, and expense (if any), with inform ation that the buyer

needs for obtainứig irísurance.

a) If the nam ed place is the seller’s prem ises, when the goođs have

been loaded on the means o f transport provided by the buyer.

b) In any other case, when the goods are placed at the disposal o f

the Qarrier or another person nominated by the buyer on the selỉer’s means o f transport ready for unloading.

If no speciĩic point has been notiĩied by the buyer under B7 d) within the named place o f delivery and if there are several points

International Chamber o f Commerce (ICC)

B THE BUYER S OBLIGATIONS

B1 General obligaỉlons o f the buyer

The buyer must pay the price o f the goods as provided in the contract o f saỉe.

Any đocument reíerred to in Bl-BĩO may be an equivalent electronic record or procedure if agreed between the parties or customary.

B2 Lìcences, authorizatỉons, security clearances and other íorm alìtìes

Where applicabỉe, it is up to ứie buyer to obtain, at its own rỉsk and expense, any import ỉicence or other official aưthorization and carry out all customs ĩormalities for the import o f the goods and for their transport through any country.

B3 C ontracts o f carriage and Insurance

a) Contract o f caưiage

The buyer must contract at its own expense for the carriage o f the goods from the named place o f delivery except when the contract o f carriage is made by the seller as provided for in A3 a).

International Chamber of Commerce (ICC)

Unless the buyer notifies the seller othenvise, the seỉler mav' deliver the goođs for carriage in such a manner as the quantity and/or nature

o f the goods may require.

A5 Transfer o f rlsks

The seỉỉer bears a!ỉ risks o f loss o f or damage to the goods until they have been delivered in accordance with A4, with the exception o f loss or đamage in the circumstances described in B5.

A6 A llocatlon o f costs

The seller must pay

a) all costs relating to the goods until they have been delivered in accordance with A4, other than those payabỉe by the buyer as envisaged in Bố; and

b) where appiicable, the costs o f customs formalities necessary for export, as weỉl as all duties, taxes, and other charges payable upon export.

International Chamber of Commerce (iCC)

B5 Transter o f rỉsks

The buyer bears aỉl risks of loss o f or damage to ứầe goods from the

time they have been delivered as envisaged in A4.

If

a) the bu ỵ er faiỊs in accordance with B7 to notiíy the nom ination o f

a carrier or another person as envisaged in A4 o r to gi ve notice; orb) the carrier or person nominated by the buyer as envisaged in A4

fails to take the goods into its charge, then, the buyer bears all risks

o f loss o f or damage to the goods:

(i) from the agreed date, or in the absence o f an agreed date,

(ii) from the date notified by the seller under A7 vvithin the agreed

period; or, if no such date has been notiĩied,

(iii) from the expiry date o f any agreed period for đelivery,

provided that the goods have been clearly identified as the contract goods.

B6 Altocation o f costs

The buyer must pay

a) all costs relating to the goods from the tim e they have been

delivered as envisaged in A4, except, where applicable, the costs o f customs ĩormaỉities necessary for export, as welỉ as all duties, taxes,

and other charges payable upon export as referred to in A6 b);

b) any additional costs incurred, either because:

(i) the buyer fails to nominate a cam er or another person as envisaged in A4, or

(ii) ửie c a ư ie r or person nominated by the buyer as envisaged in

A4 fails to take the goods into its charge, or

(iii) the buyer has failed to give appropriate notice in accordance

with B7,

provided that the goods have been clearly identiíĩed as the contract goods; and

c) vvhere applicable, aỉl duties, taxes and other charges as well as the

costs o f carrying out customs íormalities payable upon import o f the goods and the costs for their transport through any country.

International Chamber of Commerce (ICC)

A7 Notỉces to the buyer

The seller must, at the buyer’s risk and expense, give the buyer suữĩcient notice either that the goods have been delivered in accorđance w ith A 4 or that the carrier or another person nominated

by tíie buyer has ĩailed to take the goods within tiíie tim e agreed

A8 Delívery docum ent

The seller m ust proviđe the buyer, at the seller’s expense, y/ìứ the usual p ro o f that the goods have been delivered in accordance wìth

A4

The seller m ust provide assistance to the buyer, at the buver’s request, risk and expense, in obtaining a transport document

A9 Checking - packagỉng - marking

The seller m ust pay the costs o f those checking operations (such as checking quality, measuring, weighing, counting) that are neceísary for the purpose o f delivering tíie goods in accordance with A-í, as well as the costs o f any pre-shipm ent inspection m andated the authority o f the country o f export

The seller must, at its own expense, package the goods, unless it is usual for the particular trade to transport the type o f goods sold unpackaged The seller may package the goods in the m ainer appropriate for their ữansport, unless Ihe buyer has notifiec the seỉler o f speciílc packaging requirements before the contract o ỉsale

is concludeđ Packaging is to be markeđ appropriateỉy

A10 Assistance w ith informatỉon and related coste

TTie selỉer must, where applicable, in a timely manner, provide ;o or render assistance in obtaining for the buyer at the b u y er’s recpest, risk and expense, any documents and infom iation, incliding security-reỉated information, thai the buyer needs for the im p o t o f ứie goods and/or for their transport to the final destínation

B7 Notices to the seller

The buyer must notỉíy the seỉler of

a) the name o f th e carrier or another person nominated as envisageđ

in A4 within suííìcient time as to enable the seller to deliver the goođs in accordance with that article;

b) where necessary, ứie seỉected time within the period agreed for delivery when the caưier or person nominateđ will take the goods;c) the mode o f ừansport to be used by the person nominated; andd) the point o f taking delivery within the nameđ place

B10 Asslstance W!th lnformatlon and related costs

The buyer must, in a timely manner advise the seller o f any security informatiọn requirements so that the seller may comply with AIO

The buyer must reimburse the seller for all costs and chai^es incurred by the seller in providing or rendering assistance in obtaining documents and information as envisaged in AIO

International Chamber of Commerce (ICC)

The seller m ust reimburse the buyer for all costs and charges incurred by the buyer in proviđing or rendering assistance in obtaining docum ents and information as envisaged in BIO

International Chamber of Commerce (ICC)

The buyer m ust, vvhere appỊicabỉe, in a timely manner, provide to or render assistance in obtaining for the selíer, at the selỉer’s request, risk and expense, any documenls and iníonnation, including security-related information, that the seller needs for the transport and export o f the goods and for their transport through any country

Intematỉonaỉ Chamber of Commerce (ICC)

- ' r ỉ

í 'í

Intematiorval Chamber of Commerce CC)

W hen CPT, CIP, CFR or CIF are used, the seỉler flilfiỊs its oblỉgation to deliver when it hands ứie goods over to the carrier and not when the goods reach the pỉace o f destination

This ruỉe has tw o criticaỉ points, because risk passes and costs are transĩerred at different places The parties are welỊ advised to identiíy as precisely as possible in the contract both the place o f delivery, where the risk passes to the buyer, and the named place o f destination to which the selỉer m u s t c o n t r a c t f o r t h e c a ư i a g e í f s e v e r a l c a ư i e r s a r e u s e d f o r t h e carriage to the agreed destination and the parties do not agree on a specifíc point o f delivery, the default position is that risk passes when the goods have been delivered to the tlrst carrier at a point entirely o f the seller’s choosing and over which the buyer has no control Shouỉd the parties wish the risk to pass at a later stage (e.g., at an ocean port or airport), they need to speciíy ửĩis in their contract o f sale

The parties are also vvell advised to identiíy as precisely as possible the point w ithin the agreed place o f destination, as the costs to that point are for the account o f the seller The selỉer is advised to procure contracts o f carriage that match this choice precisely If the seller incurs costs under its contract o f carriage related to unloading at the named place o f destination, the seller is not entitled to recover such costs from th e buyer unỉess othervvise agreed betw een the parties

CPT requires the seller to clear the goods for export, where appỉicabỉe However, the seller has no obligation to cỉear the goods for import, pay any im port duty or carry out any ũnport customs formalities

International Chamber of Commerce (!CC)

A THE SELLER^S OBLIGATIONS

A1 General obhgations of the seller

The seller must provide the goods and the com m ercial invoice in conform ity w ith the contract o f sale and any other evidence o f conform ity that may be required by the contract

Any docum ent refeư ed to in AI-AIO may be an equivalent eỉectronic record or procedure if agreed betAveen the parties or customary

A2 Licences, authorìzations, securìty clearances and other torm alities

W here applicable, the seller must obtain, at its own risk and expense, any export licence o r other oíTiciaỉ authorization and carry out all custom s fonnalities necessary for the export o f the goods, and for their ừansport through any country prior to delivery

A3 Contracts o f carrỉage and insurance

a) Contract o f carriage

The seller must conừact or procure a contract for the carriage o f the goods from the agreed point o f deỉiveĩy if any, at the place o f delivery to the named place o f destination or, if agreed, any point at that place The contract o f caưiage must be made on usual term s at the seller’s expense antl provide for carriage by ứie usual route and

in a custom ary manner If a speciĩic point ìs not agreed or is not determ ined by practice, the seller may select the point o f delivery and the point at the named place o f destination that best suit its purpose

b) C ontract o f Insurance

The seller has no obligation to the buyer to make a contract o f insurance Hovvever, the seller must provide the buyer, at the b u y er’s request, risk, and expense (if any), with inform ation that the buyer needs for obtaining Insurance

A4 Delỉvery

The selier m ust deliver the goods by handing them over to the carrier conừacted in accordance with A3 on the agreed date or within the agreed period

Internationa! Chamber o í Commerce (ICC)

B THE BUYER*S OBLIGATIONS

B1 General obligations of the buyer

The buyer must pay the price o f the goods as provideđ in the contract o f sale

Any docum ent referred to in B l-B lO may be an equivalent eiectronic record or procedure if agreed between the parties or customary

B2 Licences, authorízations, security clearances and other íorm alities

Where applicabie, it is up to the buyer to obtain, at its own risk and expense, anỵ im port licence or other official authorization and carry out al! custom s íorm alities for the import o f the goods and for their transport through any country

B3 Contracts o f carrỉage and Insurance

a) C ontract o f caư iage

The buyer has no obligation to the selỉer to make a cọntract o f carriage

b) Contract o f insurance

The buyer has no obligation to the seìler to make a contract o f Insurance Hovvever, the buyer must proYÌde thc seller, upon request, with the necessary iníormation for obtaininÉ: Insurance

B4 Taking delỉvery

The buyer m ust take delivery o f the goods when they have been deiivered as envisaged in A4 and receive them from the carrier at the nam ed place o f destination

íncoterms® 2010 149

International Chamber of Commerce (ICC)

A5 Transfer o f risks

The seller bears alỉ risks o f loss o f or dam age to the goods until they have been delivered in accordance w ith A4, with the exception o f loss or dam age in the cữcum stances described in B5

A6 A llocation o f costs

The seỉler m ust pay

a) all costs relating to the goods until they have been delivered in accordance wiứi A4, other than those payabỉe by the buyer as envisaged in B6;

b) the freight and all other costs resulting from A3 a), inciuđing the costs o f loading the goods and any charges for unỉoading at the place o f destination that w ere for the seller’s account under the contract o f carriage; and

c) w here applicable, the costs o f custom s form alities necẹssary for export, as welỉ as all duties, taxes and other charges payable upon export, and the costs for their transport through any country that were for the seller’s account under the contract o f carriage

A7 Notices to the buyer

The seller m ust notify the buyer that the goods have been delivered

in accordance with A4

The seller m ust give the buyer any notice needed in order to allow the buyer to take m easures that are norm ally necessary to enabỉe the buyer to take the goods

International Chambér of Commerce (ICC)

goods have been clearly identiíled as the contract goods.

66 A llocatíon o f costs

T h e buyer must, subject to the provisions of A3 a), pay

a) aỉỉ costs relating to the goods from the tim e they have been

d eliv ered as envisaged in A4, except, where applicable, the costs o f custom s form alities necessary for export, as well as all duties, taxes,

an d oứier charges payable upon export as referred to in A6 c);

b) all costs and charges relating to the goods while in transit until

th eir arrival at the agreed place o f destination, unless such costs and charges w ere for the seìlers account under the contract o f carriage;

c) unloading costs, unless such costs vvere for the seller’s account

u n d er the contract o f caưiage;

d) any additional costs incuưed if the buyer faiỉs to give notice in accordance wiứi B7, from the agreed date or the expiry đate o f the agreed period for dispatch, provided that the goods have been clearly identifíed as the contract goods; and

e) w here applicable, ail duties, taxes and other charges, as well as the costs o f carrying out customs fọrmalities payable upon import o f the goods and the costs for thẽir tran^port through any country, unĩess included vvithin the cost o f the contract o f caưiage

B7 Notices to the seller

T h e b u y er must, w henever it ịs entitled to deteưnine the tim e for disp atch in g the goods and/or the named pỉace o f destination or the

po int o f receiving the goods within that place, give the seller

su ííìcien t notice thereof

Internationa Chamber of Commerce (ICC)

A8 Delivery document

If custom ary or at the buyer’s request, the selier m ust provide the buyer, at the seller’s expense, wiứì the usual transport đocum entts] for the ừanspoit conừacted in accordance with A3

This transport docum ent m ust cover the contract goods and be dated within the period agreed for shipment I f agreeđ or customary, the docum ent must also enable the buyer to claim the goods from the carrier at the named place o f destination and enable the buyer to sell the goods in transit by the transíer o f the docum ent to a subsequent buyer or by notiíication to ứie carrier

W hen such a transport document is issued in negotiabie form and in several originals, a fijll set o f originals must be presented to the

buyer

A9 Checking - packaging - markíng

The seller m ust pay the costs o f those checking operations (such as checking quality, measuring, weighing, counting) that are necessary

for the purpose o f delivering the goods in accordance with A4, as

well as the costs o f any pre-shipm ent inspection m anđated by the authority o f the counừy o f export

The seller must, at its own expense, package the goods, unless it is

usual for the particular ừade to t r a n s p ^ the type o f goods sold

ưnpackageđ The seller may package the goods in the manner appropriate for their ừansport, onless the buyer has notifíed the

seller o f specific packaging requirements before the contract o f sale

is concluded Packaging is to be marked appropriately

A10 Asslstance w ith ỉnformatỉon and related costs

TTie seller must, w here applicable, in a timely manner, proviđe to or renđer assistance in obtaining for the buyer, at the b u y er’s request, risk and expense, any docum ents and iníorm ation, including

security-related inĩormation, that the buyer neeđs for the import o f

the goods and/or for their transport to the final destination

The seller m ust reimburse the buyer for all costs and charges incurred by the buyer in providing or rendẹring assistance in obtaining documents and iníormation as envisaged in BIO

International Chamber of Commerce (ICC)

B10 A ssistance with intormation and related costs

The buyer must, in a timely manner, advise the seller o f any security iníorm ation requirements so that the seller may comply with AIO

The buyer must reimburse the seller for all costs and charges incurred by the seller in providing or rendering assistance in obtaining documents and inforrĩìation as envisaged in AIO

The buyer must, where appỉicable, in a timely manner, provide to or render assistance in obtaining for the seller, at the seller’s reqưest, risk and expense, any documents and infoim ation, including security-related infơrmation, that the selỉer needs for the transport and export o f the goods and for their transport through any country

International Chamber of Commerce (ICC)

International Chamber of Commerce (ICC)

CIP

CARRIAGE AND INSURANCE PAID TO

C IP (insert nam ed place o f destination) Incoterm s® 2010

IHằÌVtRY

GƯ IDANCE NOTE

This rule may be used irrespective o f the m ode o f transport selected and

m ay aiso be used w here more than one mode o f transport is employed

“Carriage and Insurance Paid to” means that the seỉler đelivers the goods

to the carrier or another person nom inated by the seller at an agreed place (if any such place is agreed between the parties) and that the sẹ-ller must contract for and pay the costs o f carriage necessary to bring ứie goods to the named pỉace o f destination

The seller also contracts for Insurance cover against the buyer*s risk o f loss o f or dam age to the goods đuring the carriage The buyer should note

t h a t u n d e r CIP the s e l l e r is r e q u i r e d t o o b t a i n I n s u r a n c e o n l y on m i n i m u m cover Should the buyer wish to have more Insurance protection, it wilỉ need either to agree as ĩĩiuch expressly with the seỉler or to make its own extra Insurance arrangements

W hen CPT, CIP, CFR or CIF are used, the selier fulfiỊs its obligation to deliver w hen it hands the goods over to the carrier and not when the goods reach the f»lace o f destination

This ruỉe has two critical points, because risk passes and costs are transfeưed at different places The parties are well advised to identify as precisely as possible in the conừact both the place o f deỉivers vvhere the risk passes to the buyer, and the named place o f destination to which the seỉler m ust contracl for caưiage If several carriers are used for the carriage to the agreed destination and the parties do not agree on a speciĩic point o f delivery the defauỉt position is that risk passes when the goods have been deỉivered to the first carrier at a point entireỉy o f the selỉer’s choosing and over which the buyer has no control Should the parties w ish the risk to pass at a later stage (e.g,, at an ocean port or an airport), they need to speciíy this in their contract o f sale

Incoterms® 2010 155

International Chamber of Commerce (ICC)

The parties are aĩso well advised to identiíy as preciselv as possible the point vvithin the agreed place o f destination, as the costs to that point are for the account o f the seller The seller is advised to procure contracts o f carriage that m atch this choice preciseỉy l f the seller incurs costs under its confract o f carriage related to unloading at the nam ed place o f destination, tíìe selier is not entitleđ to recover such costs from the buyer unỉess othenvise agreed beUveen the parties

C IP requires the seỉler to cỉear the goods for export, w here applicable However, the seiler has no obligatíon to clear the goods for import, pay any ịmport duty or carry out any import customs formalities