INCOTERMS 2020

1. REGULATIONS FOR ANY MODE OR MODES OF TRANSPORT:

EXW – Ex Works (place of delivery indicated)

Often used when establishing an initial quotation for the sale of goods without any costs included, EXW means that the seller makes the goods available at its facilities or at another designated location (yards, factory, warehouse, etc. ). The seller does not need to load the goods into a vehicle, or ship the goods for export.

FCA – Free Carrier (place of delivery indicated)

FCA can have two different meanings, each with different levels of risk and cost to buyer and seller.

• FCA (a)is used when the seller delivers the goods, cleared for export, to a named place which is his own premises.
• FCA (b)is used when the seller delivers the goods, cleared for export, to a named place other than their premises.

In both cases, the goods can be delivered to a carrier designated by the buyer, or to another person designated by the buyer.

CPT – carriage paid to (named place of destination)

According to the CPT, the seller pays for the transport of the goods to the named place of destination.

CIP: Carriage and Insurance Paid at (named place of destination)

Similar to CPT except that the seller must obtain minimum insurance for the goods while in transit.

DAP – delivered to place (named place of destination)

The seller is deemed to have delivered when the goods are made available to the buyer on the means of transport of arrival and are ready to be unloaded at the agreed place of destination. Under the terms of the DAP, the seller must manage all the risks associated with the entry of the goods.

DPU: delivered to unloaded location (named place of destination)

This Incoterm requires the seller to deliver the goods, unloaded, to the agreed place. The seller bears all transport costs (export taxes, transport, unloading of the main carrier at the port of destination and port taxes of destination) and assumes all risks until arrival at destination.

DDP – Delivered Customs Paid (Named Place of Destination)

The seller is responsible for delivering the goods to the named place in the buyer’s country and pays all costs of bringing the goods to destination, including import duties and taxes. The seller is not responsible for the download.

2. MARITIME AND WATERWAY TRANSPORT REGULATIONS:

FAS – Free Alongside Ship (designated port of embarkation)

The seller delivers when the goods are placed alongside the vessel (for example, on a quay or a barge) named by the buyer at the named port of shipment. The risk of loss or damage to the goods passes when the goods are alongside the ship, and the buyer assumes responsibility for all charges from that time.

FOB – delivered on board

The seller delivers the goods on board the vessel named by the buyer at the named port of shipment or acquires the goods already delivered. The risk of loss or damage to the goods passes when the goods are on board the vessel, and the buyer assumes responsibility for all charges from that time.

CFR – Cost and Freight

The seller delivers the goods on board the vessel. The risk of loss or damage to the goods passes when the goods are on board the vessel. The seller must contract and pay the costs and freight necessary to bring the goods to the named port of destination.

CIF – Cost, Insurance and Freight

Same as CFR with the addition that the seller must also obtain minimum insurance coverage against the risk of loss or damage to the buyer’s goods during transport.

3. DIFFERENCES BETWEEN INCOTERMS 2010 AND 2020

• FCA (Free Carrier) Incoterms now offers the additional possibility of making an onboard annotation on the bill of lading before loading goods onto a vessel.
• Costs now appear centralized in A9/B9 of each Incoterms rule.
• CIP now requires at least insurance with the minimum cover of Institute Load Clause (A) (All Perils, subject to detailed exclusions).
• CIF requires at least insurance with the minimum coverage of the Institute’s Cargo Clause (C) (number of risks listed, subject to detailed exclusions).
• The Incoterms Free Carrier (FCA), Delivered at Place (DAP), Delivered at Place Unloaded (DPU) and Delivered Duty Paid (DDP) rules now take into account that goods can be transported without using another carrier. that is, using their own means of transport.
• The Delivered at Terminal (DAT) rule has been changed to Delivered at Place Unloaded (DPU) to clarify that the destination location can be anywhere and not just a “terminal”.
• Incoterms 2020 now explicitly transfers responsibility for security-related requirements and ancillary costs to the seller.