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INCOTERMS

Incoterms are a set of uniform rules determining the rights and obliga­tions of both a buyer and seller in a contract. Incoterms are designed to arrange for the transfer of responsibility from the seller to the buyer at a convenient place where goods can be inspected.

The purpose of incoterms is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. The use of correct Incoterms prevents disputes or misunderstandings on responsibilities.

All the incoterms can be divided into four groups: by the responsibilities of the buyer and the seller.

E-group

EXW - represents minimum obligation for the seller. The seller fulfils his obligation when he has made the goods available at his premises (works, factory, warehouse) to the buyer. The buyer bears all costs and risks in­volved in taking the goods from the seller's premises to the desired destina­tion.

F-group

FCA (free carrier) франко перевозчик,

FOB free on board,

FAS free alongside ship. The seller fulfils his obligations to deliver when the goods have been placed alongside the vessel on the quay of the named port of shipment. The responsibility of the seller is to hand over the goods into the charge of the carrier named by the buyer at the named place or point.

C-group ; CFR - cost andfreight, CIF, CPT - carriage paid to,

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CIP - carriage and insurance paid to. The seller pays the freight for trans­port of the goods to the named destination. The risk of loss or damage to the goods after the time the goods have been delivered to the carrier is trans­ferred from the seller to the buyer.

D-group

DAF, DES, DEQ, DDU

The seller bears all costs and risks related to delivery of the goods to the buyer's country.

Table I

Classification of Incoterms by the Seller's Responsibilities

 

Responsibilities Inkoterms
of the seller Name Russian equivalent Group
Delivery of goods EXW Ex Works Франко-завод Е
Major costs on freight are not paid FCA Free Carrier FAS Free Alongside Ship FOB Free On Board Франко-перевозчик ФАС Франко вдоль борта судна ФОБФранко-борт F
Major freight costs are paid CFR Cost and Freight CIF Cost, Insurance and Freight CPT Carriage Paid To CIP Carriage and Insur­ance Paid To Стоимость и фрахт СИФ Стоимость, страхова­ние и фрахт Перевозка оплачена до Перевозка и страхо­вание оплачены до С
Delivery of goods DAF Delivered At Frontier Поставлено на границу D

 

Delivery of goods DES Delivered Ex Ship Поставлено франко-  
  DEQ судно  
  Delivered Ex Поставлено франко-  
  Quay DDU причал  
  Delivered Duty Поставлено, пошлина  
  Unpaid DDP не оплачена  
  Delivered Duty Поставлено, пошлина  
  Paid оплачена  

Table 2


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