Incoterms

Incoterms are international trade terms, proposed by the International Chamber of Commerce – ICC, in order to facilitate trade between sellers and buyers of different countries.

The first edition was in 1936, and from time to time, the ICC publishes new versions, to reflect changes in business practices. The most recent publication is 2010, with effect from January 1, 2011 Currently there are 11 terms, divided into two groups: terms for use in operations that will be transported by waterway modal (sea, river or lake) and terms for operations carried on any mode of transport including multimodal transport. A previous publication from 2000 showed 13 terms. The main changes in this new version are:

– The FOB term, the “delivery” (from the seller to the purchaser) occurs at the time the goods are on board the ship at the port of shipment. In the 2000 version of the “delivery” occurred at the time when the goods crossed the gunwale of the boat.

– All other modifications were under group D. If in 2000 he had 05 terms: DAF, DES, DEQ, DDU and DDP in the 2010 version he has only 03 terms: DAT, DAP and DDP.

The terms DAF, DES, DEQ and DDU were extinguished and the terms DAT and DAP were created.

The DAT should be used when delivery occurs at a cargo terminal in the destination country. And the term DAP when delivery occurs somewhere in the destination country, other than a cargo terminal (Water, air, road, rail). In both cases the seller delivers the goods before the import clearance. The only term in which the seller will be responsible for the import clearance is the DDP. International Trade Terms (Incoterms) discriminated against by the International Chamber of Commerce (ICC) in their Publication No. 715E, 2010:

CODE

DESCRIPTION

EXW

EX WORKS (named place of delivery) THE ORIGIN (named place of delivery) The seller is limited to make the goods available to the buyer at their home, the deadline is not responsible for clearance for export or for loading the goods on any collecting vehicle. Usable in any mode of transport. Note: due to the foreign buyer does not have legal requirements to provide clearance for the output of goods in the country, it is understood that this measure is adopted by the seller at their own expense and risk, in the case of Brazilian exports.

FCA

FREE CARRIER (named place of delivery) Free Carrier (named place of delivery) The seller fulfills his obligations and their responsibility ends when it delivers the goods, cleared for export, to the carrier or another person nominated by the buyer at the named place in the country of origin. Usable in any mode of transport.

FAS

FAS FREE ALONGSIDE SHIP (named port of shipment) FREE ALONGSIDE SHIP (named port of shipment) The seller terminates its obligations when the goods are placed, cleared for export, along the side of the carrier vessel named by the buyer on the quay or in vessels used for loading the goods at the named port of shipment by the buyer. Used exclusively in water transport (sea or inland waterway).

FOB

FREE ON BOARD (named port of shipment) FREE ON BOARD (named port of shipment) The seller terminates its obligations and liabilities when the goods, cleared for export, is delivered, stowed aboard the ship at the port of embarkation, both indicated by the buyer on the date or within the period agreed. Used exclusively in water transport (sea or inland waterway).

CFR

COST AND FREIGHT (named port of destination) COST AND FREIGHT (named port of destination) In addition to shoulder obligations and risks planned for the FOB term, the seller hires and pays freight and costs necessary to bring the goods to the port of destination combined. Used exclusively in water transport (sea or inland waterway).

CIF

COST, INSURANCE AND FREIGHT (named port of destination) COST, INSURANCE AND FREIGHT (named port of destination) In addition to shoulder obligations and risks planned for the FOB term, the seller hires and pays freight and insurance costs related to transporting the goods to the named port of destination combined. Used exclusively in water transport (sea or inland waterway).

CPT

CARRIAGE PAID TO (named place of destination) CARRIAGE PAID TO (named place of destination) In addition to shoulder obligations and risks planned for the FCA term, the seller hires and pays freight and costs necessary to bring the goods to the destination combined. Usable in any mode of transport.

CIP

CARRIAGE AND INSURANCE PAID TO (named place of destination) SHIPPING AND INSURANCE PAID TO (named place of destination) In addition to shoulder obligations and risks planned for the FCA term, the seller hires and pays freight costs and insurance for the transportation of goods to the destination combined. Usable in any mode of transport.

DAT

DELIVERED AT TERMINAL (named terminal at port or place of destination) DELIVERED IN TERMINAL (named terminal at port or place of destination) The seller fulfills his obligations and their responsibility ends when the goods are placed at the disposal of the buyer on the date or within the agreed period, in a named destination (dock, terminal terminal containers or storage, among others), discharged the carrier but not cleared for import vehicle. Usable in any mode of transport.

DAP

DELIVERED AT PLACE (named place of destination) DELIVERED ON SITE (named place of destination) The seller fulfills his obligations and their responsibility ends when placing the goods available to the buyer on the date or within the agreed period, a place of destination other than a terminal, ready to be discharged vehicle carrier and not cleared for import. Usable in any mode of transport.

DDP

DELIVERED DUTY PAID (named place of destination) DELIVERED WITH DUTIES PAID (named place of destination) The seller fulfills his obligations and their responsibility ends when the goods are placed at the disposal of the buyer on the date or within the agreed period, the named place of destination in the importing country, not unloaded from the means transport. The seller, in addition to clearance, assumes all risks and costs including duties, taxes and other charges upon import. Usable in any mode of transport. Note: due to the foreign seller does not have legal requirements to provide clearance for entry of goods in the country, this term can not be used in Brazilian import, being selected the DAT or DAP if preference for orderly condition by ICC.

Terms of sale not governed by the publication No. 715E, 2010, the ICC:

CODE

DESCRIPTION

C + F

COST PLUS FREIGHT – MORE SHIPPING COST The seller bears the costs and risks of the tasks in the exporting country, as well as the conventional hires and pays international shipping. Usable in any mode of transport.

C + I

COST PLUS INSURANCE – COST SAFER The seller bears the costs and risks of the tasks in the exporting country, and hires and pays the insurance conventional international transport. Usable in any mode of transport.

OCV

OTHER CONDITION OF SALE Usable in operation that does not fall in any of the situations described in this Resolution.