Rules of international trade terms Incoterms 2000

 What you should know when you choose to Incoterms?

(This is only a brief interpretation of the Incoterms. Recommended for award of contracts to follow the official text, please contact the National Committee of ICC International Chamber of Commerce - Lithuania.)

EXW –  from the company. Pardavėjas įvykdo savo įsipareigojimus, kai savo patalpose pateikia prekes pirkėjui. The seller fulfills his obligations when the goods on their premises to the buyer. Buyer (either directly or indirectly) to organize the loading and export formalities. This is the lowest seller's obligations clauses. If the buyer wants the goods to be loaded into the vehicle - it must be clearly stated in the contract.

FCA - delivered to the carrier. The seller fulfills his obligation when the carrier delivers the goods to a location specified by the buyer. If the goods are handed over the carrier the seller's premises - a loading vehicle into a seller's obligation and responsibility. If a transfer is a carrier of the latter's premises or in any other place, the seller is not responsible for the unloading. Export formalities, the case for FCA also has a seller (either directly or indirectly). These conditions are used for transporting goods by all modes of transport.

FAS - delivered to the ship. Terms of use only to maritime transport. The seller fulfills his obligation when goods are delivered to the quay in a port. From that moment, all cargo operations and the risk of the buyer's responsibility. Export formalities in this case, the seller must fix.

FOB - delivered on the deck. The seller fulfills his obligation when the present load on the deck of the vessel is a cargo ship is loaded through the side rails in a port. Under these conditions, the seller must carry out the customs export formalities. Currently, the ship's railing is a limit which is very clear to the seller and the buyer's risk (eg roll on / roll type of vessels). It is now increasingly being used in FCA terms. FCA the seller is more favorable because the risk and cost of moving the buyer's responsibility from the moment when the goods are handed over to the haulier. FOB terms may be used only for maritime transport. But for some reason (eg a relatively clear allocation of costs between the seller and the buyer) the relatively widespread use of air cargo transportation.

CFR - Cost and freight. Used only for maritime transport. The seller fulfills his obligation when goods are delivered to the deck of the ship at the port of dispatch and cover all costs required for the delivery at the agreed port of destination. The risk of cargo damage or loss from the moment transferred to the buyer. Seller shall also carry out customs formalities for export.

CIF - Cost, Insurance and Freight. Used only for maritime transport. The seller fulfills his obligation when goods are delivered to the deck of the ship at the port of dispatch and cover all costs required for the delivery at the agreed port of destination. The seller also must insure goods against damage or loss during transportation and in favor of the buyer to pay the premium. The risk of cargo damage or loss from the moment transferred to the buyer. Seller shall also carry out customs formalities for export.

 CPT - Carriage Paid to ... . Exactly the same way as the CFR, but can be used for various types of cargo transportation. Thus, the seller fulfills his obligation when the carrier delivers the goods and pay all costs required for the delivery of goods to the agreed destination. The risk of cargo damage or loss from the moment transferred to the buyer. Seller shall also carry out customs formalities for export.

 CIP - Carriage and Insurance paid to ... . Exactly the same way as the CIF, but it can be used for various types of cargo transportation. Thus, the seller fulfills his obligation when the carrier delivers the goods and pay all costs required for the delivery of goods to the agreed destination. The seller also must insure goods against damage or loss during transportation and in favor of the buyer to pay the premium. The risk of cargo damage or loss from the moment transferred to the buyer. Seller shall also carry out customs formalities for export.

DAF - passed the border. The seller fulfills his obligation when goods are delivered to the border area. The seller must carry out customs formalities for export, but is not obliged to unload goods from vehicles. These commitments need certain conditions to allow the smooth transfer of the seller of goods to the buyer. Therefore, it is usually done at the customs terminal or a transport company terminal.

DES - passed on board. The seller fulfills his obligation when goods are delivered on the deck of the vessel at the port provided. Since that time, all costs and risks of the buyer's responsibility.

DEQ - The seller fulfills his obligation when goods are delivered to the quay at the port provided. The seller is responsible for all costs and risks to the moment when the goods are offloaded in the port berth. Customs clearance is the buyer's responsibility.

DDU - Delivered Duty Unpaid. The seller fulfills his obligation when goods are delivered, which is to carry out customs formalities in the destination. However, the goods were unloaded from the vehicle is not the seller responsibility. All costs related to customs formalities (procedures for the performance, fees, duties) is the buyer's responsibility.

DDP - Delivered Duty Paid. The seller fulfills his obligation when goods are delivered for the performance of customs formalities in the destination. However, the goods were unloaded from the vehicle is not the seller responsibility. All costs related to customs formalities (procedures for the performance, fees, duties) is the seller's responsibility. Provides the minimum conditions for an ex-works seller obligations, and the DDP - the biggest seller of the obligations