FOREWORD
INTRODUCTION
The Incoterms rules explain a set of three-letter trade terms reflecting business-to- business practice in contracts for the sale of goods. The Incoterms rules describe mainly the tasks, costs and risks involved in the delivery of goods from sellers to buyers.
How to use the Incoterms 2010 rules
1、 Incorporate the Incoterms 2010 rules into your contract of sale
If you want the Incoterms 2010 rules to apply to your contract, you should make this clear in the contract, through such words as, “(the chosen Incoterms rules including the named place, followed by) Incoterms 2010”.
2、 Choose the appropriate Incoterms rule
The chosen Incoterms rule needs to be appropriate to the goods, to the means of their transport, and above all to whether the parties intend to put additional obligations, for example such as the obligation to organize carriage or insurance, on the seller or on the buyer. The Guidance Note to each Incoterms rule contains information that is particularly helpful when making this choice. Whichever Incoterms rule is chosen, the parties should be aware that the interpretation of their contract may well be influenced by customs particular to the port or place being used.
3、 Specify your place or port as precisely as possible
The chosen Incoterms rule can work only if the parties name a place or port, and will work best if the parties specify the place or port as precisely as possible.
A good example of such precision would be:
“FCA 38 Cours Albert ler, Paris, France Incoterms 2010”.
Under the Incoterms rules Ex Works(EXW), Free Carrier(FCA), Delivered at Terminal(DAT), Delivered at Place(DAP), Delivered Duty Paid(DDP), Free Alongside Ship(FAS), and Free on Board(FOB), the named place is the place where delivery takes place and where risk passes from the seller to the buyer. Under the Incoterms rules Carriage Paid To(CPT), Carriage and Insurance Paid To(CIP), Cost and Freight(CFR) and Cost, Insurance and Freight(CIF), the named place differs from the place of delivery. Under these four Incoterms rules, the named place is the place of destination to which carriage is paid. Indications as to place or destination can helpfully be further specified by stating a precise point in that place or destination in order to avoid doubt or argument.
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 arrangements, when the seller delivers the goods to the buyer, and which cost each party is responsible for. Incoterms rules, however , say nothing about the price to be paid or the method of its payment. Neither do they deal with the transfer of ownership of the goods, or the consequences of a breach of contract. These matters are normally dealt with through express terms in the contract of sale or in the law governing that contract. The parties should be aware that mandatory local law may override any aspect of the sale contract, including the chosen Incoterms rule.
Main features of the Incoterms 2010 rules
1、Two new incoterms rules –DAT and DAP-have replaced the Incoterms 2000 rules DAF,DES,DEQ and DDU
The number of Incoterms rules has been reduced from 13 to 11. This has been achieved by substituting two new rules that may be used irrespective of the agreed mode of transport-DAT, Delivered at Terminal, and DAP, Delivered at Place-for the Inconterms 2000 rules DAF, DES, DEQ and DDU.
Under both new rules, delivery occurs at a named destination; in DAT , at the buyer’s dispoisal unloaded from the arriving vehicle (as under the former DEQ rule); in DAP, likewise at the buyer’s disposal, but ready for unloading (as under the former DAF , DES and DDU rules).
The new rules make the Incoterms 2000 rules DES and DEQ superfluous. The named terminal in DAT may well be in a port, and DAT can therefore safely be used in cases where the Incoterms 2000 rule DEQ once was. Likewise, the arriving “vehicle” under DAP may well be a ship and the named place of destination may well be a port: consequently, DAP can safely be used in casea where the Incoterms 2000 rule DES once was. These new rules, like their predecessors, are “delivered”, with the seller bearing all the costs (other than those related to import clearance, where applicable ) and risks involved in bringing the goods to the named place of destination.
2、Classification of the Incoterms 2010 rules
The 11 Incoterms 2010 rules are presented in two distinct classes:
RULES FOR ANY MODE OR MODES OF TRANSPORT
EXW EX WORKS
FCA FREE CARRIER
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAT DELIVERED AT TERMINAL
DAP DELIVERED AT PLACE
DDP DELIVERED DUTY PAID
RULES FOR SEAAND INLAND WATERWAY TRANSPORT
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
The first class includes the seven Incoterms 2010 rules that can be used irrespective of the mode of transport selected and irrespective of whether one or more than one mode of transport is employed. EXW, FCA, CPT, DAT, DAP and DDP belong to this class. They can be used even when there is no maritime transport at all. It is important to remember, however, that these rules can be used in cases where a ship is used for part of the carriage.
In the second class of Incoterms 2010 rules, the point of delivery and the place to which the goods are carried to the buyer are both ports, hence the label “sea and inland waterway” rules. FAS, FOB, CFR and CIF belony to this class. Under the last three Incoterms rules, all mention of the ship’s rail as the point of delivery has been omitted in preference for the goods being delivered when they are “on board” the vessel. This more closely reflects modern commercial reality and avoids the rather dated image of the risk swinging to and fro across an imaginary perpendicular line.
3、Rules for domestic and international trade
Incoterms rules have traditionally been used in international sale contracts where goods pass across national borders. In various areas of the word, however, trade blocs, like the European Union, have made border formalities between different countries less significant. Consequently, the subtitle of the Incoterms 2010 rules formally recognizes that they are available for application to both international and domestic sale contracts. As a result, the Incoterms 2010 rules clearly state in a number of places that the obligation to comply with export/import formalities exists only where applicable.
Two developments have persuaded the ICC that a movement in this direction is timely. Firstly, traders commonly use Incoterms rules for purely domestic sale contracts. The second reason is the former Uniform Commercial Code shipment and delivery terms.
4、Guidance Notes
Before each Incoterms 2010 rule you will find a Guideance Note, The Guidance Notes explain the fundamentals of each Incoterms rule, such as when it should be used, when risk passes, and how costs are allocated between seller and buyer. The Guidance Notes are not part of the actual Incoterms 2010 rules, but are intended to help the user accurately and efficiently steer towards the appropriate Incoterms rule for a particular transaction.
5、Electronic communication
Previous versions of Incoterms rules have specified those documents that could be replaced by EDI messages. Articles A1/B1 of the Incoterms 2010 rules, however, now give electronic means of communication the same effect as paper communication, as long as the parties so agree or where customary. This formulation facilitates the evolution of new electronic procedures throughout the lifetime of the Incoterms 2010 rules.
6、Insurance cover
The Incoterms 2010 rules are the first version of the Incoterms rules since the revision of the Institute Cargo Clauses and tke account of alterations made to those clauses. The Incoterms 2010 rules place information duties relating to insurance in articles A3/B3, which deal with contracts of carriage and insurance. These provisions have been moved from the more generic articles found in articles A10/B10 of the Incoterms 2000 rules. The language in articles A3/B3 relating to insurance has also been altered with a view to clarifying the parties’ obligation in this regard.
7、Security-related clearances and information required for such clearances
There is heightened concern nowadays about security in the movement of goods, requiring verification that the goods do not pose a threat to life or property for reasons other than their inherent nature. Therefore, the Incoterms 2010 rules have allocated obligations between the buyer and seller to obtaion or to render assistance in obtaining security-related clearances, such as chain-of-custody information, in articles A2/B2 and A10/B10 of various Incoterms rules.
8、Terminal handling charges
Under Incoterms rules CPT, CIP, CFR, CIF, DAT, DAP, and DDP, the seller must make arrangements for the carriage of the goods destination. While the ferigh is paid by the seller, it is actually paid for by the buyer as feright costs are normally included by the seller in the total selling price. The carriage costs will sometimes include the costs of handing and moving the goods within port or container terminal facilities and the carrier or terminal operator may well charge those costs to the buyer who receives the goods. In those circumstances, the buyer will want to avoide paying for the same service twice: once to the seller as part of 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、String sales
In the sale of commodities, as opposed to the sale of manufactured goods, cargo is frequently sold several times during transit “down a string”. When this happens, a seller in the middle of the string does not “ship” the goods because these have already been shipped by the first seller in the string. The seller in the middle of the string therefore performs its obligations towards its buyer not by shipping the goods, but by “procuring” goods that have been shipped. For clarification purposes, Incoterms 2010 rules include the obligation to “procure goods shipped” as an alternative to the obligation to ship goods in the relevant Incoterms rules.
Variants of Incoterms rules
Sometime the parties wants to alter an Incoterms rule. The Incoterms 2010 rules do not prohibit such alteration, but there are dangers in so doing. In order to avoid any unwelcome surprises, the parties would need to make the intended effect of such alterations extremely clear in the contract. Thus, for example, if the allocation of costs in the Incoterms 2010 rules is altered in the contract, the parties should also clearly state whether they intend to vary the point at which the risk passes from seller to buyer.
Status of this introduction
This introduction gives general information on the use and interpretation of the Incoterms 2010 rules, but does not form part of those rules.
Explanation of 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, reflecting under column A the seller’s obligations and under column B the buyer’s obligations. These obligations can be carried out personally by the seller or the buyer or sometimes, subject to terms in the contract or the applicable law, through intermediaries such as carriers, freight forwards or other persons nominated by the seller or the buyer for a specific purpose.
The text of the Incoterms 2010 rules is meant to be self-explanatory. However, in order to assist users the following text sets out guidance as to the sense in which selected terms are used thronghout the document.
Carrier: For the purpose of the Incoterms 2010 rules, the carries is the party with whom carriage is contracted.
Customs formalities: These are requirement to be met in order to comply with any applicable customs regulations and may include documentary, security, information or physical inspection
Obligations.
Delivery: This concept has multiple meanings in trade law and practice, but in the Incoterms 2010 rules, it is used to indicate where the risk of loss of or damage to the goods passes from the seller to the buyer.
Delivery document: This phrase is now used as the heading to article A8. It means a document used to prove that delivery has occurred. For many of the Incoterms 2010 rules, the delivery document is a transport document or corresponding electronic record. However, with EXW, FCA, FAS and FOSB, the delivery document may simply be a receipt. A delivery document may also have other functions, for example as part of the mechanism for payment.
Electronic record or procedure: A set of information constituted of one or more electronic message and, where applicable, being functionally equivalent with the corresponding paper document.
Packaging: This word is used for different purposes:
1、The packaging of the goods to comply with any requirements under the contract of sale.
2、The packaging of the goods so that they are fit for transportation.
3、The stowage of the packaged goods within a container or other means of transport.
In the Incoterms 2010 rules, packaging means both the first and second of the above . The Incoterms 2010 rules do not deal with the parties’ obligations for stowage within a container and therefore, where relevant, the parties should deal with this in the sale contract.
EXW
GUIDANCE NOTE
This rule may be used irrespective of the mode of transport selected and may also be used where more than one mode of transport is employed. It is suitable for domestic trade, while FCA is usually more appropriate for international trade.
“Ex Works” means that the seller delivery when it places the goods at the disposal of the buyer at the seller’s premises or at another named place ( i.e., works, factory, warehouse, etc.).The seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable.
The parties are well advised to specify as clearly as possible the point within the named place of delivery, as the costs and risks to that point are for the account of the seller. The buyer bears all costs and risks involved in taking the goods from the agreed point, if any, at the named place of delivery.
EXW represents the minimum obligation for the seller. 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 load the goods, it does so at the buyer’s risk and expense. In cases where the seller is in a better position to load the goods, FCA, which obliges the seller to do so at its own risk and expense, is usually more appropriate.
b) A buyer who buys from a seller 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 well advise not to use EXW if they cannot directly or indirectly obtain export clearance.
c) The buyer has limited obligations to provide to the seller any information regarding the export of the goods. However, the seller may need this information for, e.g., taxation or reporting purpose.
A THE SELLER’S OBLIGATIONS
A1 General obligations of the seller
The seller must provide the goods and the commercial invoice in conformity with the contract of sale and other evidence of conformity that may be required by the contract .
Any document referred to in A1-A10 may be an equivalent electronic record or procedure if agreed between the parties or customary.
A2 Licences, authorizations, security clearances and other formalities
Where applicable, the seller must provide the buyer, at the buyer’s request, risk and expense, assistance in obtaining any export licence, or other official authorization necessary for the export of the goods.
Where applicable, the seller must provide, at the buyer’s request, risk and expense, any information in the possession of the seller that is required for the security clearance of the goods.
A3 Contracts of carriage and insurance
a) Contract of carriage
The seller has no obligation to the buyer to make a contract of carriage.
b) Contract of insurance
The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk and expense (if any), with information that the buyer needs for obtaining insurance.
A4 Delivery
The seller must deliver the goods by placing them at the disposal of the buyer at the agreed point, if any, at the named place of delivery, not loaded on any collecting vehicle. If no specific point has been agreed within the named place of delivery, and if there are several points available, the seller may select the point that best suits its purpose. The seller must deliver the goods on the agreed on the agreed date or within the agreed period.
A5 Transfer of risks
The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A4with the exception of loss or damage in the circumstances described in B5.
B THE BUYER’S OBLIGATIONS
B1 General Obligations of the buyer
The buyer must pay the price of the goods as provided in the contract of sale .
Any document referred to in B1-B10 may be an equivalent electronic record or procedure if agreed between the parties or customary.
B2 Licences, authorizations, security clearances and formalities
Where applicable, it is up to the buyer to obtain, at its own risk and expense .any export and import licence or other official authorization and carry out all customs formalities for the export of the goods.
B3 Contracts of carriage and insurance.
a) Contract of carriage
The buyer has no obligation to the seller to make a contract of carriage.
b) Contract of insurance
The buyer has no obligation to the seller to make a contract of insurance
B4 Taking delivery
The buyer must take delivery of the goods when A4 and A7 have been complied with.
B5 Transfer of risks
The buyer bears all risks of loss of or damage to the goods from the time they have been delivered as envisaged in A4.
If the buyer fail to give notice in accordance with B7 , then it bears all risks of loss of or damage to the goods form the agreed date or the expiry date of the agreed period for delivery, provided that the goods have been clearly indentified as the contract goods.
A6 Allocation of 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 the buyer to take
delivery of the goods.
A8 Delivery document
The seller has no obligation the buyer
A9 Checking-Packaging-making
The seller must pay the costs of those checking operation (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of 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 of goods sold unpackaged. The seller may package the goods in the manner appropriate for their transport, unless the buyer has notified the seller of specific packaging requirements before the contract of sale is concluded. Packaging is to be marked appropriately.
A10 Assistance with information and related costs
The seller must, where applicable, in a timely manner, provide to or render assistance in obtaining for the buyer, at the buyer's request, risk and expense, any documents and information, including security-related information, that the buyer needs for the export and/or import of the goods and/or for their transport to the final destination.
B6 Allocation of costs
The buyer must:
a) Pay all costs relating to the goods from the time they have been delivered as envisaged in A4;
b) Pay any additional costs incurred by failing either to take delivery of the goods when they have been placed at its disposal or to give appropriate notice in accordance with B7, provided that the goods have been clearly identified as the contract goods;
c) Pay, where applicable, all duties, taxes and other charges, as well as the costs of carrying out customs formalities payable upon export; and
d) Reimburse all costs and charges incurred by the seller in providing assistance as envisaged in A2.
B7 Notices to the seller
The buyer must , whenever it is entitled to determine the time within an agreed period and/ or the point of taking delivery within the named place, give the seller sufficient notice thereof.
B8 Proof of delivery
The buyer must provide the seller with appropriate evidence of having taken
delivery.
B9 Inspection of goods
The buyer must pay the costs of any mandatory pre-shipment inspection, including inspection mandated by the authorities of the country of export.
B10 Assistance with information and related costs
The buyer must, in a timely manner, advise the seller of any security information requirements so that the seller may comply with A10.
The buyer must reimburse the seller for all costs and charges incurred by the seller in providing or rendering assistance in obtaining documents and information as envisaged in A10.
The buyer must reimburse the seller for all cost and charges incurred by the seller in providing or rendering assistance in obtaining documents and information as envisaged in A10.
FCA
GUIDANCE NOTE
This rule may be used irrrrespectivr of the mode of transport selected and may also he used where more than one mode of transport is employed.
“Free Carrier” means that the seller delivery when it places the goods at the disposal of the buyer at the seller’s premises or at another named place ( i.e., works, factory, warehouse, etc.).The seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable.
The parties are well advised to specify as clearly as possible the point within the named place of delivery, as the costs and risks to that point are for the account of the seller. The buyer bears all costs and risks involved in taking the goods from the agreed point, if any, at the named place of delivery.
FCA represents the minimum obligation for the seller. The rule should be used with care as:
A THE SELLER’S OBLIGATIONS
A1 General obligations of the seller
The seller must provide the goods and the commercial invoice in conformity with the contract of sale and other evidence of conformity that may be required by the contract .
Any document referred to in A1-A10 may be an equivalent electronic record or procedure if agreed between the parties or customary.
A2 Licences, authorizations, security clearances and other formalities
Where applicable, the seller must provide the buyer, at the buyer’s request, risk and expense, assistance in obtaining any export licence, or other official authorization necessary for the export of the goods.
Where applicable, the seller must provide, at the buyer’s request, risk and expense, any information in the possession of the seller that is required for the security clearance of the goods.
A3 Contracts of carriage and insurance
c) Contract of carriage
The seller has no obligation to the buyer to make a contract of carriage.
d) Contract of insurance
The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk and expense (if any), with information that the buyer needs for obtaining insurance.
A4 Delivery
The seller must deliver the goods by placing them at the disposal of the buyer at the agreed point, if any, at the named place of delivery, not loaded on any collecting vehicle. If no specific point has been agreed within the named place of delivery, and if there are several points available, the seller may select the point that best suits its purpose. The seller must deliver the goods on the agreed on the agreed date or within the agreed period.
A5 Transfer of risks
The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A4with the exception of loss or damage in the circumstances described in B5.
B THE BUYER’S OBLIGATIONS
B1 General Obligations of the buyer
The buyer must pay the price of the goods as provided in the contract of sale .
Any document referred to in B1-B10 may be an equivalent electronic record or procedure if agreed between the parties or customary.
B2 Licences, authorizations, security clearances and formalities
Where applicable, it is up to the buyer to obtain, at its own risk and expense .any export and import licence or other official authorization and carry out all customs formalities for the export of the goods.
B3 Contracts of carriage and insurance.
a) Contract of carriage
The buyer has no obligation to the seller to make a contract of carriage.
b) Contract of insurance
The buyer has no obligation to the seller to make a contract of insurance
B4 Taking delivery
The buyer must take delivery of the goods when A4 and A7 have been complied with.
B5 Transfer of risks
The buyer bears all risks of loss of or damage to the goods from the time they have been delivered as envisaged in A4.
If the buyer fail to give notice in accordance with B7 , then it bears all risks of loss of or damage to the goods form the agreed date or the expiry date of the agreed period for delivery, provided that the goods have been clearly indentified as the contract goods.
B6 Allocation of costs
The buyer must, subject to provisions of A3a),pay
a) all cost relating to the goods from the time they have been delivered as envisagd in A4,except, where applicable, the cost of customs formalities necessary for export, as well all duties, taxes, and other charges payable upon export as referred to in A6c)
b) all cost and charges relating to the goods while in transit until arrival at the agreed place of destination, useless such cost and charges were for the seller’s account under the contract of carriage.
c) Unloading cost, unless such costs were for the seller’s account under the contarct of carriage.
d) Any addition costs incurred if the buyer fails to give notice in accordance with B7, from the agreed date or the expiry date of the agree period for dispatch. Provided that the goods have been clearly identified as the contract goods, and
e) Where applicable, all duties, taxes and other charges.as well as the costs of carrying out customs formalities payable upon import of the goods and the costs for their transport through any country, unless included within the cost of the contract of carriage.
B7 Notices to the seller
The buyer must, whenever it is entitled to determine the time for dispatching the goods and/or the named place of destination or the point of receiving the goods within that place, give the seller sufficient notice thereof.
B8 Proof of delivery
The buyer must accept the transport document provided as envisaged in A8 if it is in conformity with contract.
A9 Checking- packaging-marking
The seller must pay the costs of those checking operations（such as checking quality, measuring, weighing, counting）that are necessary for the purpose of delivering the goods in accordance with A4, as well as the costs of any pre-shipment inspection mandated by the authority of the country of export.
The seller must. At its own expense, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller may package the goods in the manner appropriate for their transport, unless the buyer has notified the seller of specific packaging requirements before the contract of sale is concluded. Packaging is to be marking appropriately.
A10 Assistance with information and related costs
The seller must, where applicable, in a timely manner, provide to or render assistance in obtaining for the buyer, at the buyer’s require, risk and expense, any documents and information, including security-related information, that the buyer needs for the import of the goods and/or for their transport to the final destination .
The seller must reimburse the for all costs and charges incurred by the buyer in providing or rendering assistance in obtaining documents and information as envisaged in B10.
B9 Inspection of goods
The buyer must pay the costs of any mandatory pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.
B10 Assistance with information and related costs
The buyer must, in a timely manner, advise the seller of any security information requirements so that the seller may comply with A10.
The buyer must reimburse the seller for all costs and charges incurred by the seller in providing or rendering assistance in obtaining documents and information as envisaged in A10.
The buyer must, where applicable, in a timely manner, provide to or render assistance in obtaining for the seller, at the seller’s request, risk and expense, any documents and information, including security-related information, that the seller needs for the transport and export of the goods and for their transport through any country.
前几天在常用的国际贸易术语中提到新出的2010通则，今天给大家贴出来，如果需要中文版的话请联系John。
