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3. Incoterms Notes

BPTC Law Notes > International Commercial Practice Notes

This is an extract of our 3. Incoterms document, which we sell as part of our International Commercial Practice Notes collection written by the top tier of City Law School students.

The following is a more accessble plain text extract of the PDF sample above, taken from our International Commercial Practice Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

6 INCOTERMS INCOTERMS 2010 are often categorised into four groups: E, F, C and D. The 11 INCOTERMS arrangements are listed by group in the table below:

INCOTERMS are easily researched from the following:?

The International Chamber of Commerce publication 'INCOTERMS 2010', in the University library. The 'Guide to INCOTERMS 2010', also published by the ICC, is a satisfactory, if lengthier, alternative. If you read this, concentrate on the contents of each of the individual arrangements and do not spend too much time on the commentary. (Note that ICC publications group the arrangements differently from the table above.) Publicly available websites. There is a good guide at www.exportvirginia.org, (search for 'INCOTERMS' in the search box, then follow the link with 'Fast Facts' in its Web address); also the INCOTERMS schedules at www.freightfly.com provide a good summary of which party bears which costs. It is important that you do not use material relating to INCOTERMS 2000, as these have been superseded. Anything referring to INCOTERMS 2000, DES, DEQ, DAF or DDU is out of date.

Research The International Chamber of Commerce (ICC) in Paris developed Incoterms (International Commercial Terms), a set of uniform rules for the interpretation of terms defining the costs, risks, and obligations of buyers and sellers in international transactions. Whoever has the risk usually makes their own dispositions - insurance. Contracts are interpreted by the version of Incoterms referred to in the contract. Therefore, only a contract that refers to Incoterms 2010 will be governed by rules from that version. Incoterms are not laws enacted by governments. Rather, they are rules agreed to by parties to a contract. Also, Incoterms are not implied into contracts for the sale of goods. If you desire to use Incoterms, you must specifically include them in your contract. Your contract should expressly refer to a specific version of Incoterms. DEFINITIONSDelivery---In common usage, "delivery" is the act of delivering something, while the "place of delivery" is often the buyer's place of business. In Incoterms 2010, however, "delivery" is the point where "the risk of loss or damage passes from the seller to the buyer." This is often the "named port or place" but not necessarily the buyer's place of business.Pre-carriage---The initial transport of goods from the seller's premises to the main port or place where main carriage begins. Usually by truck, rail, or inland waterway.Main carriage---The primary transport of goods, generally for the longest part of the journey and generally from one country to another. Usually by sea vessel or by airplane, but also by truck, rail or inland waterway.Onward carriage---Transport from the port, terminal, or place of arrival in the country of destination to the buyer's premises. Usually by truck, rail, or inland waterway.Multimodal---Use of more than one mode of transport (road, rail, sea, air) to transport goods (or people) from origin to final destination.

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