Incoterm 2013

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INternational COmmercial Term
By Prasad Shetty

The INCOTERMS (International Commercial Terms) is a universally recognized set of definitions. international trade terms, developed by the International Chamber of Commerce (ICC) in Paris, It defines the trade contract responsibilities and liabilities between buyer and seller.

Why are they Important?
• The most complex & important tool of international trade is language. Small changes in wording can have major impact on the business agreement. For the avoid this misunderstanding. This is where “INCOTERM” comes into existence. • The INCOTERMS was first published in 1936‐‐and it is revised periodically to keep up with changes in the international trade needs.

• Costs: who is responsible for the expenses involved in a shipment at a given point in the shipment's journey? • Control: who owns the goods at a given point in the journey? • Liability: who is responsible for paying damage to goods at a given point in a shipment's transit?

What are they?
This terms are divided into four different categories (EFCD)
• E The seller only makes the goods available to the buyer at the seller’s premises. • F The seller delivers the goods to a carrier or place appointed by the buyer. • C The seller has to contract at his costs for carriage and insurance • D The seller must assume most costs, obligations and risks needed to bring the goods to the place of destination

EXW‐(From factory, mill or Warehouse)
EX works menace the seller’s only responsibility is to make the good available at seller's premises The seller is not responsible for loading the goods on vehicle provided by the buyer Buyer is responsible for loading the goods on truck or container at the seller’s premises.

FCA‐Free Carrier
• The Seller delivers the goods, cleared for…...

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