Basis for delivery of Incoterms in foreign trade contracts. Basis of delivery of goods and transport conditions of the contract of sale What is the basis of shipment

22.09.2020

Providing for the distribution between the seller and the buyer of responsibilities for the promotion of goods, the execution of relevant documents and payment of transportation costs, determining the moment of transfer of ownership from the seller to the buyer, the risk of accidental damage or loss of goods, as well as the date of delivery.

Big legal dictionary. - M.: Infra-M. A. Ya. Sukharev, V. E. Krutskikh, A. Ya. Sukharev. 2003 .

See what "SUPPLY BASIS" is in other dictionaries:

The condition of a foreign trade transaction that distributes between the seller and the buyer the obligations to draw up transaction documents and pay transportation costs, which determines the moment of transfer of ownership of the goods from the seller to the buyer, ... ... Glossary of business terms

Conditions of a foreign trade transaction regarding the distribution of obligations between the seller and the buyer regarding the execution of documents, the distribution of costs, the fulfillment of delivery dates, etc. Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B .. ... ... Economic dictionary

DELIVERY BASIS- the conditions of a foreign trade transaction regarding the distribution of responsibilities between the seller and the buyer regarding the execution of documents, the distribution of costs, the fulfillment of delivery dates, determining the moment of transfer from the seller to the buyer of the right ... Legal Encyclopedia

Conditions of a foreign trade transaction relating to the distribution of responsibilities between the seller and the buyer regarding the execution of documents, the distribution of costs, the fulfillment of delivery dates, determining the moment of transfer from the seller to the buyer of the right ...

delivery basis- a condition of a foreign trade transaction that provides for the distribution between the seller and the buyer of obligations to promote the goods, the execution of relevant documents and the payment of transportation costs, the determination of the moment of transition from the seller to ... ... Big Law Dictionary

DELIVERY BASIS- a condition of a foreign trade transaction, which provides for the distribution between the seller and the buyer of responsibilities for the promotion of goods, the execution of relevant documents and payment of transportation costs, determining the moment of transition from the seller to ... ... Big Economic Dictionary

delivery basis- conditions of a foreign trade transaction regarding the distribution of responsibilities between the seller and the buyer regarding the execution of documents, the distribution of costs, the fulfillment of delivery dates, etc ... Dictionary of economic terms

- (see DELIVERY BASIS) ... Encyclopedic Dictionary of Economics and Law

- (Greek basis) an allowance to the exchange quotation or a discount from it, which is the subject of bargaining. It depends on the type and quality of the goods, delivery terms, payments and other factors. An increasing basis is indicated in points up from the stock quote, ... ... Economic dictionary

From Greek. ba sis A. Basis, foundation, base. B. A premium or discount to a stock quote. Is the subject of bargaining, depends on the quality of the goods, delivery terms, payment terms and other factors. B. is increasing and decreasing. Vocabulary … Glossary of business terms

Comment:

EXW (abbreviated from English Ex Works letters from the place of work; German - ab Werk). The Russian “self-delivery” is also used.

The seller delivers the goods to the buyer at his plant, factory, mine, warehouse, etc. You go to the store, weigh a kilogram of sausage, pack it for you, pay the bill at the checkout and buy the goods on EXW terms. These are the simplest conditions for the seller and at the same time the most difficult for the buyer, in terms of labor intensity, complexity of the organization. But at the same time, the price of the goods will be the most preferable for the purchase, which means that there is an opportunity for additional earnings.

In general, if the buyer is well acquainted with the characteristics of the product itself, its behavior during transportation, has a reliable "local" forwarder, is confident in the reliability of the seller, it makes sense to save money.

What the buyer needs to consider:

Specify in detail the parameters and characteristics of packages (including marking);

Taking into account the characteristics of packages and the peculiarities of the transportation of goods, determine the type of vehicle;

Specify the scope of delivery, it is desirable that it be a multiple of the volume of the vehicle that the seller must submit for loading (wagon, motor vehicle, container, etc.)

Clearly agree with the seller on the place of transfer, indicating not only the geographical location (Moscow, for example), but also exact address;

Clearly agree on the timing of the vehicle for loading:

Coordinate in advance with the seller, whose means will be used for loading. At whose expense it is clear, since in any case the buyer pays. It is necessary to take into account the fact that even if the loading is carried out by the seller, then if there are no special clauses in the contract, the risk of loss or damage lies with the buyer. Therefore, we necessarily agree with the buyer and make an addition to the contract “with loading at the risk of the seller” or “with loading at the risk of the buyer”;

We determine with your reliable and “local” forwarder the list of necessary documents for registration of the export of goods from the country and, depending on the legislation of the country of export, we determine and agree with the forwarder or with the seller who draws up what documents;

We determine with the seller the parameters for receiving the goods in qualitative and quantitative terms, including the coordination of acceptance and transfer documents, issue clear instructions to our forwarder if he will accept the goods:

Coordinating insurance terms with insurance companies

Of course, this list is not complete and depends on the specific case, but under these delivery conditions, the buyer's logisticians can prove themselves most significantly and, with a reasonable approach, bring additional profit.

Important in determining the role of the transport component in the international contract of sale are the bases for the delivery of goods developed and adopted in 1936 by the ICC. These are the key elements of the international sales contract, indicating which of the parties organizes the transportation of goods, bears the costs associated with transporting the goods from the exporter to the importer, and determines the moment of transfer of the right to dispose of the goods and the moment of transfer of the risk of accidental loss or damage to the goods from the seller to the buyer .

The bases for the supply of goods were published by the ICC in the form of a collection of rules "International Commercial Terms" - INCOTERMS-1936. With the development of international trade and the creation of new transport technologies, appropriate changes and additions were made to the collection in 1953, 1967, 1976, 1980, 1990, 2000. The latest changes were adopted in 2010 and INCOTERMS 2010 is currently in effect.

Seven editions of INCOTERMS fixed the basic terms of delivery, which were the result of a generalization of the rules that have historically developed in international trade practice. They simplified and, in essence, standardized the procedure for selling goods on the international market.

The accepted basic conditions are used in foreign trade by exporters and importers on a voluntary basis. In other words, they are optional. Consequently, the parties to an international contract of sale may include the relevant basic conditions in the contract or conclude it on a different condition. When choosing a basic condition, the parties are not limited to the relevant edition of INCOTERMS. However, it should be noted that in their comments on latest editions INCOTERMS ICC recommends focusing on these editions as those that meet latest changes in modern foreign trade, in particular, related to the introduction of progressive transport and technological systems into the practice of delivering goods, the development of container multimodal transportation, the expansion of multimodal transportation, the use of river-sea vessels for the transportation of goods, the introduction of transport insurance of goods, new settlement systems and ways of documenting and transmitting information using electronic systems.

In total, 13 delivery bases are fixed in INCOTERMS, each of which fixes its own transport conditions. INCOTERMS-1990 divided all delivery bases into four groups depending on the specific qualitative features of international sales contracts, and INCOTERMS-2000, retaining this classification, clarified the content of individual delivery bases.

In the proposed classification, the first letters of the terms related to the corresponding group are used to designate each group: E, F, C, D.

The first group, denoted by the letter E, contains one basis - "from the factory" (name of the item) - "Ex works" (EXW). It is often referred to as "ex-works", "ex-works of the seller" or "self-delivery of goods". According to the terms of the basis, the seller transfers the goods to the buyer at his enterprise (factory, warehouse) within the prescribed period. The seller's obligations are reduced to preparing the goods for transfer: packing, packing, weighing, concentrating at the place of transfer, etc.

The ex-factory delivery basis is a rule according to which, from the moment the goods are transferred from one counterparty to another, all costs and risks of delivering them to their destination are borne by the buyer. The issue of transportation of goods is also decided by the buyer. He has the right to carry out transportation by his own transport or to conclude a contract for the carriage of goods.

It is assumed that the buyer also concludes a cargo insurance contract. He is also responsible for the execution of all customs formalities for the export of goods, their import and transit. At the same time, by agreement, the seller provides the buyer with the necessary assistance in obtaining documents for the export, import and transit of goods through third countries.

Group F includes three bases:

- FCA - free carrer (named point) - free from the carrier at the specified point of the country of departure (free carrier);
- FAS - free alongside ship (named post) - freely along the side of the ship provided by the buyer at the specified port of loading;
- FOB - free on board (named post of shipment) - freely on board the ship provided by the buyer, at the specified port of loading.

This group of bases is referred to as risk-free. Its bases include rules that mean the transfer of risk from the seller to the buyer at the time of transfer of the goods, as well as the obligations of the seller to load the goods or deliver them to the carrier's warehouse, provide a vehicle for the transport of goods and pay for the carriage.

The FCA basis is used in cases where it is necessary to consolidate cargo into containers, packages, etc. Its distinguishing feature lies in imposing the obligation on the seller to deliver the goods, which have passed customs formalities for export, to the means of transport indicated by the buyer, and to hand them over to the carrier, who hands him a cargo receipt.

In accordance with the terms of this basis, the seller's obligation is to carry out all official formalities necessary for the export of the goods, as well as to notify the buyer of the transfer of the goods to the carrier or of the latter's refusal to accept the goods.

In the cases stipulated in the contract, at the request of the buyer, the seller, in order to provide an additional service, may conclude a contract for the carriage of goods with the carrier. If there is no such clause, the contract of carriage is concluded by the buyer. He also concludes a cargo insurance contract.

When concluding a contract of carriage by the seller, the fact of loading is certified by transport documents, which he is obliged to hand over to the buyer.

Under the terms of the FCA basis, the buyer is obliged to conclude a contract of carriage (if this function was not undertaken by the seller), complete all official formalities necessary for the importation of goods, as well as during its transit through third countries, bear all risks from the moment the goods are accepted from the seller or his carrier.

The FAS basis applies in limited cases where the goods are classified as general cargo and are delivered by sea in ro-ro line vessels or lighter carriers. In accordance with the terms of this basis, the seller is obliged to place the goods along the side of the vessel at the port of shipment at the place indicated by the buyer. From that moment on, his obligations are considered fulfilled, and all risks are transferred from the seller to the buyer.

The buyer concludes a contract of carriage and a contract of transport insurance of cargo. He is also responsible for loading the goods onto the ship.

Under the terms of FAS, the seller performs export and customs formalities, and the buyer - import and transit.

The FOB basis is used for maritime transport in both liner and transit shipping. Its essence lies in the fact that the obligations of the seller are considered fulfilled at the moment the goods cross the ship's rails. This means that the seller is obliged at his own expense to deliver the goods to the port and load them onto the vessel. All subsequent operations with the goods are the responsibility of the buyer. From the milestone moment when the goods cross the ship's rails, all risks are transferred from the seller to the buyer.

As in the case of the FAS terms, under the FOB terms, the seller performs export and customs formalities, and the buyer - import and transit.

It should be noted that the FOB basic terms actually set a gap in the single technological process loading, placement, fastening of cargo on the ship, etc. However, the fixed single chord tariff rates for all the listed operations exclude such discontinuities. Therefore, in practice, the FOB delivery basis in its pure form is not applied. There are two varieties of it. The first one is FOB and trimmed (stowed). According to its terms, the international contract of sale contains the clause "FOB with loading and stowage". This means that the seller performs additional services for handling cargo on board the ship.

The second type of basis is FOB liner terms, which is used in liner transportation. In this case, the shipowner organizes and pays for cargo handling at the ports of loading and unloading. Costs are included in the freight rate and paid by the buyer.

Group C includes four bases:

- CFR - cost and freight (named port of destination) - cost and freight (port of destination);
- CIF - cost insurance and freight (named port of destination) - cost, insurance and freight (port of destination);
- CPT - carriage pevid to... (named place of destination) - carriage paid to... (named place);
- CIP - carriage insurance to... (named place of destination) - carriage and insurance paid to... (named place of destination).

This group of bases is characterized by the fact that the seller is free from risk for the goods after it has been sent, but bears certain costs for the delivery of the goods to the buyer. He concludes a contract of carriage to the point agreed by the parties.

The CFR basis is used for sea and river transportation of goods, except for cases when container ships and ro-ro ships are used for such transportation. Under its terms, the seller is obliged to deliver the goods to the port of departure, insure at his own expense the vessel to the agreed port and load the goods on board this vessel. The captain of the vessel issues to the seller a clean on-board bill of lading (cargo receipt), in which a note is made of payment for the carriage or guarantees of payment.

As for the buyer, he has the right to insure the goods. However, due to the fact that all foreign trade cargo is currently insured, the buyer concludes an insurance contract in almost all cases.

The moment of transfer of risks from the seller to the buyer is the crossing of the ship's rails during loading at the port of departure.

The CIF basis, like the CFR, is used for sea and river transportation of goods. Under its terms, the seller not only concludes a contract for the carriage of goods, but also insures the goods at his own expense. He indicates the buyer as the beneficiary in the insurance contract. Therefore, the seller must hand over to the buyer, together with the transport documents, an insurance policy or an insurance certificate. It is quite clear that the price of the goods on the CIF delivery basis will also include the amount of the insurance premium.

As in the case of the FOB delivery basis, when using CIF terms, its variation is applied - “CIF with unloading”, which means that the seller assumes additional service, and hence the cost of unloading the goods to the berth or dock at the port of destination.

Other obligations of the seller include the following: providing the buyer with all necessary documents confirming the compliance of the goods with contractual conditions; fulfillment of all official and customs formalities necessary for the export of goods; the loading of goods on board the ship within the prescribed period; notification of the buyer about the loading of the goods.

The seller bears all risks until the goods cross the ship's rail at the port of shipment.

The main obligations of the buyer are to take delivery at the time of loading the goods on board the ship at the port of shipment, receiving the goods from the carrier at the port of destination, fulfilling all official and customs formalities necessary for the importation of goods, as well as for transit transportation, unloading of goods at the port of destination ( unless "CIF with unloading" applies).

All risks are transferred to the buyer from the moment the goods cross the ship's rail at the port of shipment.

The CIF basis, like FOB, is most often used in the practice of international trade due to the fact that prices on commodity exchanges are usually controlled according to these two basic conditions.

CPT basis - an element of an international contract of sale, according to which the seller concludes a contract for the carriage of goods, while paying for loading and unloading operations, including reloading from one mode of transport to another when transported in direct mixed traffic, and also makes carriage charges for the entire route of the cargo. This basis is included as a condition in the international contract of sale for transportation by almost all modes of transport. But most often it is used in road, air and intermodal transportation.

The CIP basis is most widely used in international road, rail and air transport. Under the terms of the CIP, the seller enters into a contract for the carriage of goods. As in transactions with the CPT basis, he pays for loading and unloading, and also makes all transportation payments. The peculiarity of CIP is that when it is applied, the seller is obliged to insure the goods in favor of the buyer and pay the insurance premium. Consequently, the price of the goods includes both the costs of its loading and unloading and carriage charges, as well as the costs of insurance.

The seller's obligations are considered fulfilled from the moment the goods are handed over to the first carrier, as evidenced by a clean bill of lading issued to the seller by the carrier. The scope of the seller's obligations practically coincides with his obligations under the CFR contract.

All risks are transferred from the seller to the buyer from the moment the seller transfers the goods to the first carrier.

The fourth group D consists of five bases:

- DAF - delivered at frontier (named place) - delivered at the border (point name);
- DES - delivered ex ship (named of destination) - delivered from the ship (port name);
- DEQ - delivered ex quay (named of destination) - delivered from the pier (name of the port);
- DDU - delivered duty unpaid (named place of destination) - delivered without payment of duty (name of point);
- DDR - delivered duty paid (named place of destination) - delivered with payment of duty (name of point).

A characteristic of the listed group of bases is that, under their terms, the seller transfers the goods to the buyer in the country of destination. Therefore, he bears all the costs and risks associated with the delivery of the cargo to its destination.

The only exception is the DAF basis, according to which the costs and risks are associated with the delivery of goods to the buyer at the agreed point at the border.

Therefore, on the terms of the bases of group D, contracts are concluded in cases where they seek to obtain a guarantee that the seller will fulfill the obligation to supply the goods to the buyer in exchange for the damaged or lost due to a real risk of its non-preservation.

The DAF basis is applied when transporting goods by road and rail. It is especially widely used by participants in international contracts,

representing the CIS countries, in the case of rail transportation of goods. The peculiarity of the DAF conditions is that the seller concludes a contract for the carriage of goods only to the designated station, and the buyer, in turn, concludes a contract for the carriage from the designated station to the destination, i.e. in fact, the carriage is made out by two contracts of carriage. This is inconvenient for both the buyer and the carrier. Therefore, in practice, in the international contract of sale in the section on the terms of the contract, a clause is usually made that the seller concludes a contract of carriage for the entire route with payment of the costs of transporting the goods. With such a clause, the price of the goods includes the costs of the seller for its transportation from the border station to the final destination.

The main responsibilities of the seller include:

- conclusion at own expense of a contract of carriage to an agreed point on the border (and if agreed - for the entire route);
- fulfillment of all official and customs formalities necessary for the export of goods to a specific point on the border and transit through third countries;
- notification of the buyer about the delivery of goods;
- transfer to the buyer of the goods and transport documents at the agreed point at the border.

The seller bears all risks and all costs until the goods are handed over to the buyer at the agreed point at the frontier.

Under the terms of DAF, the obligations are considered fulfilled after the receipt of the goods at the border point named in the contract at the time of its transfer to the buyer.

The main responsibilities of the buyer include:

- acceptance of delivery of the goods handed over to him at the agreed point at the frontier by the seller;
- implementation of the calculation for the delivered goods;
- fulfillment of all official and customs formalities necessary for the import of goods at a specific point on the border.

The buyer bears all risks and all costs from the moment of acceptance of the goods at the agreed point at the frontier.

Under DAF conditions, the issue of goods insurance has not been clearly regulated. In practice, it is solved as follows: up to the agreed border point, the goods are insured by the seller, and from the border point, when the risks are transferred to the buyer, the goods are insured by the latter.

A variant of the DAF conditions is the condition "DAF free wagon border station". Its main feature is that if, under the terms of DAF, the seller performs unloading or reloading of goods at the border station at his own expense, then in accordance with the terms of the “DAF free wagon border station”, these operations are carried out by the buyer and at his expense.

The DES basis is used in maritime and river transport, when the buyer has the goal of receiving the goods at his own berth or unloading the goods with his own unloading facilities.

DES has a lot in common with CIF terms. As under the CIF terms, under the DES basis, the seller concludes at his own expense a contract of carriage to the destination. The rights and obligations of the parties practically coincide. By general conditions contract, the main difference lies in the risks and costs that are transferred to the buyer when the goods cross the ship's rail, but not at the port of loading, but at the port of destination. Therefore, in practice, this condition is called "free port of destination". The second difference is related to the fact that the seller is not obliged to insure the goods.

The DES basis was most widely used for the supply of grain in ocean-going vessels with reloading in the road to small-tonnage vessels or river-sea vessels.

The DEQ basis, like DES, is used in sea and river transportation. The terms DEQ and DES are largely the same. But unlike the DES basis, under the terms of DEQ, the seller's obligation is not only to deliver the goods to the port of destination, but also to unload them at this port to the specified berth (wharf). He also bears the costs of this operation. Therefore, the price of the goods also includes the costs associated with unloading it at the port of destination.

In practice, two variants of DEQ are used. The first is related to the imposition of payment of import duties on the seller. The second option involves the assignment of this responsibility to the buyer. The use of one or another option is stipulated in the international contract of sale. All risks are transferred to the buyer from the moment when the goods are placed at his disposal at the berth (wharf) of the port of destination.

Most often, contracts on DEQ terms are concluded when the seller-exporter agrees with the shipowner on the transportation of small consignments of cargo under one groupage bill of lading with shared bills of lading issued at the port of departure, according to which each small consignment of cargo is issued to a specific consignee 1 .

The DDU basis is universal in nature, as it is used for transportation by any mode of transport. It is also called "ex-buyer" or "ex-buyer's warehouse". This name was given to the DDU delivery basis (“free buyer”) because, in accordance with this rule, all costs and risks for the delivery of goods to their destination are borne by the seller, who concludes a contract of carriage, as well as an insurance contract for goods. But the seller does not clear customs for imports and does not bear the costs associated with taxes, duties and other official charges levied upon importation of goods.

The moment the seller fulfills his obligations is the transfer of goods to the buyer in his warehouse. This fact is confirmed by the act of delivery and acceptance of goods. Thus, all risks for the delivery of the goods to the destination indicated by the buyer lie with the seller.

The DDP basis is characterized by the fact that its conditions practically coincide with those of the DDU basis. The exception is the obligation of the seller to clear the goods and pay all customs and other applicable import duties. Therefore, he bears all the risks and costs associated with both the export of the goods and its import.

Thus, the considered delivery bases, enshrined in INCOTERMS-2000, contain all options for the distribution between the seller and the buyer of responsibilities for organizing delivery and, above all, for concluding a transportation contract, the costs and risks associated with this delivery, starting from the transfer of goods to the buyer at the seller’s warehouse (EXW) and ending with its delivery by the seller to the buyer's warehouse with the attribution to the seller of all costs and risks of delivery.

The choice by the parties of an international contract of sale of one or another basis depends on many factors, including the nature of the goods, their quantity, the type of transport used to deliver them to their destination, the opportunities and specific goals facing the seller and buyer, and others. factors.

Incoterms 2010 (Incoterms 2010) are international rules recognized by government bodies, law firms and merchants around the world as an interpretation of the most applicable in international trade terms. The scope of Incoterms 2010 (Incoterms 2010) applies to the rights and obligations of the parties under the contract of sale in terms of the supply of goods (terms of delivery of goods). Incoterms 2010 rules came into effect on January 1, 2011.

Incoterms rules (Incoterms) are trade terms abbreviated by the first three letters, reflecting business practice in contracts for the international sale of goods. Incoterms rules define mainly the obligations, costs and risks involved in the delivery of goods from sellers to buyers.

Incoterms®(eng. International commerce terms) is trademark International Chamber of Commerce (ICC). Incoterms ICC rules for the use of trade terms in national and international trade. Official translation of Incoterms 2010 of the International Chamber of Commerce (ICC) into Russian.

How to use the rules of Incoterms 2010 (Incoterms 2010)

1) By incorporating Incoterms 2010 into your contract of sale.
When applying the Incoterms 2010 rule, you must clearly indicate this in your contract as follows: “the chosen Incoterms, including the name of the place, in accordance with Incoterms 2010 / Incoterms 2010”.

2) By choosing the appropriate Incoterms term.
The chosen Incoterm should be appropriate to the goods, the mode of transportation and, in addition, reflect the extent to which the parties intend to make additional obligations, for example, the seller's or buyer's obligation to arrange transportation or insurance. The explanations for each term provide information useful in making this choice. Whichever term is chosen, the parties should bear in mind that the interpretation of their contract may be affected by the customs of ports or other places.

For example: "FCA St. Petersburg Russia Incoterms 2010"

3) By defining the point or port as precisely as possible.
The chosen term Incoterms can only work if the parties have identified a point or port, and even better if the parties have identified such a point or port (airport) as precisely as possible. A good example of such a refinement is the following: "FCA seaport St. Petersburg Russia Incoterms 2010".

According to Incoterms EXW (Ex Works / Free Factory), FCA (Free Carrier / Free Carrier), DAT (Delivered at Terminal), DAP (Delivered at Place), DDP (Delivered Duty Paid / Delivery Duty Paid), FAS (Free Alongside Ship) and FOB (Free on Board), the named point represents the place where the delivery takes place and the risk passes to the buyer.

CPT (Carriage Paid To), CIP (Carriage and Insurance Paid To), CFR (Cost and Freight) and CIF (Cost, Insurance and Freight) Incoterms. insurance and freight), the named point differs from the place of delivery. According to these four Incoterms, a named place means a place of destination to which carriage is paid. For the avoidance of doubt or dispute, references to such a place as a point or destination may be further defined by referring to the exact point at that point or destination.

4) It should be remembered that Incoterms do not represent a complete contract of sale.
Incoterms rules only indicate which party to the contract of sale must carry out the necessary actions for transportation and insurance when the seller hands over the goods to the buyer, and what costs each party bears. Incoterms rules do not indicate the price to be paid or the method of payment. They also do not regulate the transfer of ownership of the goods or the consequences of a breach of contract. These matters are usually set out in express terms in the contract of sale or in the law applicable to such contract. The parties, however, should be aware that a strictly binding national law (mandatory local law) may take precedence with respect to any aspect of the contract of sale, including the chosen term Incoterms.

The main differences between Incoterms 2010 and Incoterms 2000

Two new Incoterms 2010 terms - DAT (Delivered at Terminal) and DAP (Delivered at Destination) - have replaced the following Incoterms 2000 terms: DAF (Delivered at Frontier), DES (Delivered from Ship), DEQ (Delivered from Quay) and DDU

The number of Incoterms has been reduced from 13 to 11. This was made possible by the inclusion of two new terms that can be used regardless of the agreed mode of transport, namely: DAT (Delivered at Terminal) and DAP (Delivered at Destination) instead of Incoterms 2000 : DAF (Delivered at Frontier), DES (Delivered Ex Ship), DEQ (Delivered Ex quay) and DDU (Delivered Duty Free).

Under these two new terms, the delivery takes place at the agreed place of destination: under the term DAT (Delivered at the Terminal) by placing the goods at the disposal of the buyer unloaded from the arriving vehicle (as was previously the case under the term DEQ (Delivered from Quay); under the term DAP (Delivered at the place of destination) also by placing the goods at the buyer's disposal, but ready for unloading (as was previously the case under the terms DAF (Delivered at Frontier), DES (Delivered from Ship) and DDU (Delivered Duty Free).

These new rules made Incoterms 2000 DES (Delivered from Ship) and DEQ (Delivered from Quay) redundant. The reference to the terminal in the term DAT (Delivered at Terminal) may be in a port, and therefore the term DAT can be safely used where the term Incoterms 2000 DEQ (Delivered from Quay) has been applied.

Likewise, the arrived "vehicle" in DAP (Delivered at Destination) could be the vessel and the agreed destination the port of destination: therefore DAP (Delivered at Destination) could safely be used where Incoterms were applied. 2000 DES (Delivery Ex Ship). These new rules, like their predecessors, are "delivered terms", i.e. the seller bears all costs (other than the costs of customs clearance for import, if applicable) and risks associated with the delivery of the goods to the agreed destination.

Classification of terms Incoterms 2010

The eleven Incoterms 2010 terms can be divided into two separate groups:

I REGULATIONS FOR ANY TYPE OR MODES OF TRANSPORT	II REGULATIONS FOR MARITIME AND INLAND WATER TRANSPORT
EXW- "Ex Works / Free Factory" FCA- "Free Carrier / Free carrier" SRT- "Carriage Paid to" CIP- "Carriage and Insurance Paid to" DAT- "Delivered at Terminal / Delivery at the terminal" DAP- Delivered at Place DDP- Delivered Duty Paid	FAS- "Free Alongside Ship" FOB- "Free on Board / Free on board" CFR- "Cost and Freight / Cost and Freight" CIF- "Cost Insurance and Freight / Cost, Insurance and Freight"

The first group includes seven terms that can be used regardless of the chosen mode of transportation and regardless of whether one or more modes of transport are used. This group includes the terms EXW (Ex works), FCA (Free Carrier), CPT (Carriage Paid To), CIP (Carriage and Insurance Paid To), DAT (Delivered at Terminal), DAP (Delivered at Destination) and DDP ( Delivery Duty Paid). They can be used even if there is no sea transportation at all. However, it is important to remember that these terms can be applied when a vessel is partially used for transportation.

In the second group of Incoterms 2010 terms, both the point of delivery and the place to which the goods are transported by the buyer are ports, and therefore these terms are referred to as "marine and inland water regulations". This group includes the terms FAS (Free Alongside Ship), FOB (Free on Board), CFR (Cost and Freight) and CIF (Cost, Insurance and Freight). In the last three terms, any mention of the ship's rail as the point of delivery is omitted, since the goods are considered delivered when they are "on board" the ship. This more accurately reflects modern commercial reality and eliminates the notion that the risk moves back and forth relative to an imaginary perpendicular line.

Incoterms rules for intranational trade

Incoterms have traditionally been used in international sales contracts when the goods crossed a border. In various parts of the world, the creation of trade unions, such as the European Union, has made it less important to have visible control over goods as they pass through the borders of the respective parties. Therefore, the subheadings of Incoterms 2010 explicitly indicate that these rules can be used both in contracts for the international sale of goods and in domestic contracts for the sale. As a result, the rules of Incoterms 2010 clearly emphasize in a number of paragraphs that the obligation to carry out export-import formalities exists only when applicable.

Two developments convinced the ICC that it was timely to move in this direction. First, merchants make extensive use of Incoterms rules in domestic sales contracts. Secondly, there is a growing desire in the US to use Incoterms in domestic trade instead of the shipping and delivery terms previously enshrined in the US Uniform Commercial Code.

Explanations in Incoterms 2010

Each term Incoterms 2010 has explanations. They highlight the main points for each Incoterm term, for example: when they should be applied, when the risk passes, how the costs are distributed between the seller and the buyer. These clarifications are not part of the current rules of Incoterms 2010, their purpose is to help the user in the accurate and efficient selection of the appropriate international trade term for a particular transaction.

Electronic communications in Incoterms

early versions of Incoterms defined documents that could be replaced by electronic messages (EDI messages). In Articles A1/B1 of Incoterms 2010, electronic means of communication are recognized to have the same effect as paper communications, if the parties so agree or if this is accepted. This formula facilitates the evolution to new electronic procedures during the period of validity of Incoterms 2010.

Insurance coverage in Incoterms

The Incoterms 2010 Rules represent the first version of Incoterms since the revision of the London Underwriters Rules (the Institute Cargo Clauses) and take into account the changes made to these Rules. In Incoterms 2010, information relating to insurance obligations is placed in articles A3/BZ, which refer to contracts of carriage and insurance. These provisions were moved from articles A10 / B10 of the Incoterms 2000 rules, which had general character. The wording of the AZ/BZ articles on insurance has also been amended to clarify the obligations of the parties in this regard.

Security control in Incoterms

Currently, there is increasing concern for the safety of the movement of goods, requiring verification that the goods do not pose a threat to people's lives or their property for reasons not related to its natural properties. Therefore, in Articles A2/B2 and A10/B10 of Incoterms 2010, the seller and the buyer are responsible for implementing or facilitating the implementation of security control formalities, such as, for example, a seizure information system.

Terminal processing costs in Incoterms

According to the terms of Incoterms CPT, CIP, CFR, CIF, DAT, DAP and DDP, the seller is obliged to take all necessary measures to ensure that the goods are transported to the agreed destination. When the freight is paid by the seller, it is essentially paid by the buyer, since the freight charges are usually included in the total price of the goods by the seller. Freight costs sometimes include the costs of handling and moving the goods at the port or container terminal, and the carrier or terminal operator may charge these costs to the buyer receiving the goods. In such circumstances, the buyer is interested in avoiding double payment for the same service - once to the seller as part of the total price of the goods and the second time separately to the carrier or terminal operator. Incoterms 2010 managed to avoid this by clearly allocating such costs in articles A6 / B6 of the relevant terms.

Subsequent sales in Incoterms

In commodity trading, as opposed to trading finished goods, the cargo is often sold several times consecutively during the transportation period. If this is the case, the seller in the middle of the chain "does not ship" the goods, because the goods have already been shipped by the first seller in this chain. Therefore, the seller in the middle of the chain fulfills his obligations towards the buyer, not by shipping the goods, but by providing the shipped goods. For the purpose of clarification, the obligation to “deliver goods shipped” has been included in the relevant terms of Incoterms 2010 as an alternative to the obligation to ship goods in the relevant terms of Incoterms.

Changes to Incoterms

Sometimes the parties wish to supplement any Incoterms rule. Incoterms 2010 does not prohibit such an addition, however, there is a danger regarding this. To avoid unwanted surprises, it is advisable for the parties in their contract to provide as accurately as possible the effect expected from such additions. For example, if the contract changes the distribution of costs compared to Incoterms 2010 rules, the parties need to make it clear whether they intend to change the point at which the risk passes from the seller to the buyer.

Explanation of terms used in Incoterms 2010: as in Incoterms 2000, the obligations of the seller and the buyer are presented in a mirror image, column A contains the obligations of the seller, and column B contains the obligations of the buyer. These obligations may be performed directly by the seller or buyer, or sometimes, in accordance with the terms of the contract or under applicable law, through intermediaries such as carriers, freight forwarders, or other persons nominated by the seller or buyer for a specific purpose. The text of Incoterms 2010 is self-sufficient.

Carrier: for the purposes of Incoterms 2010, the carrier is the party with whom the contract of carriage is concluded.
Customs formalities: requirements that must be met in accordance with applicable customs regulations and may include obligations regarding documents, security, information or actual inspection of the goods.
Supply: this concept is multifaceted in commercial law and practice, but Incoterms 2010 uses it to indicate the moment when the risk of loss or damage to the goods passes from the seller to the buyer.
Shipping documents: this concept is used in the title of paragraph A8. It means a document confirming the delivery (transfer) of goods. For many Incoterms 2010 terms, a shipping document is a transport document or a corresponding electronic record. However, according to the terms EXW, FCA, FAS and FOB, a receipt can also be a shipping document. The shipping document may also have other functions, such as being part of the payment mechanism.
Electronic record or procedure: a set of information consisting of one or more electronic messages and, when applicable, functionally performing the same function as a paper document.
Package: This concept is used for several purposes:
1) The packaging of the goods must comply with the requirements of the sales contract.
2) The packaging of the goods means that the goods are suitable for transportation.
3) Storage of packaged goods in a container or other means of transport.
In Incoterms 2010, the concept of packaging includes both the first and second specified meaning. Incoterms 2010 does not regulate the obligations of the parties to stow the goods in a container, and, moreover, if necessary, it is advisable for the parties to provide for this in the contract of sale.

The new Incoterms 2020 rules came into effect on January 1, 2020.

7.1. The concept and purpose of "Incoterms".

When concluding a foreign trade contract, the parties must clearly divide among themselves the numerous responsibilities associated with the delivery of goods from the seller to the buyer.

Incoterms (International Commercial Terms)– Rules for the interpretation of international commercial terms to unify the obligations of the seller and the buyer for the supply of goods and ensure their identical interpretation by counterparties from different countries, developed by the International chamber of commerce(MTP), and determining the content of the main, most used in practice, terms of delivery.

The first version of the document was prepared by the ICC in 1936. The latest version was made in 2010 (“Incoterms - 2010”). AT legal relation the document is optional.

Incoterms 2010 (Incoterms 2010) are international rules recognized by governments, law firms and merchants around the world as an interpretation of the most applicable terms in international trade.

Incoterms are based on the principle that the risk of partial or complete loss of cargo passes from the seller to the buyer after the seller has fulfilled his delivery obligations. The provisions of Incoterms in many aspects offer only a general approach to the distribution of rights and obligations for the supply, therefore, in the contract, if necessary, this distribution is specified. In most cases, the parties seek to agree on a suitable Incoterm baseline. If any provisions of Incoterms do not suit the partners, this is specifically noted in the contract. The delivery terms fixed in the contract have priority.

Basic delivery condition in sales contracts in accordance with Incoterms defines :

Ø distribution of costs between the seller and the buyer (who pays for what and until what time?), respectively, the contract price of the goods will depend on the delivery basis chosen by the parties;

Ø obligations to prepare and transfer documents (who develops them, receives them, at whose expense and in whose name?), (but not the composition of documents!);

Ø the moment of transfer of risk and responsibility for the delivery (who is responsible for what, up to what stage and point in time?).

7.2. Distribution of responsibilities between seller and buyer

Distribution of transportation duties provided for in Incoterms:

A - Responsibilities of the seller (by elements)

1. Provision of goods in accordance with the terms of the contract

2. Registration of licenses, permits and other formalities

3. Conclusion of a contract of carriage and insurance

4. Delivery

5. Transfer of risks

6. Distribution of costs

7. Buyer Notice

9. Inspection, packaging, labeling

10. Other responsibilities

The seller under all basic conditions is obliged to:

Ø deliver the goods in accordance with the terms of the contract to the specified destination;

Ø timely inform the buyer about the readiness of the goods for shipment;

Ø pay the costs associated with checking the goods;

Ø provide at your own expense the usual packaging of the goods;

Ø Obtain, at your own expense, an export license or other export permit;

Ø pay the customs duties levied on export.

B - Obligations of the buyer (by elements)

1. Payment of the price for the goods

2. Registration of licenses, permits and other formalities

3. Conclusion of a contract of carriage

4. Acceptance of delivery

5. Transfer of risks

6. Distribution of costs

7. Notice to seller

8. Provision of proof of delivery

9. Product inspection

10. Other duties

The buyer under all basic conditions is obliged to:

Accept the goods at the place and time specified in the contract and pay its cost;

Bear all costs and risks from the date of expiry of the delivery period due to late acceptance of the goods;

Pay all costs for imported goods, unless otherwise specified in the conditions;

Obtain a license at your own expense.

7.3. Components of transport costs

When fixing the price of the goods in the contract, it is of great importance to determine its delivery basis . The price basis determines whether transport, insurance, storage and other costs for the delivery of the goods are included in the price of the goods.

Basic terms of delivery – special conditions, defining the obligations of the seller and the buyer for the delivery of goods, which establish the moment of transfer of the risk of accidental loss or damage to the goods from the seller to the buyer. Thus, the basic conditions determine who bears the costs associated with the transportation of goods from the exporting seller to the importing buyer. These costs are very diverse and sometimes amount to 40-50% of the price of the goods. They may include:

ü expenses for preparing goods for shipment (checking quality and quantity, sampling, packaging);

ü payment for the loading of goods on the means of transportation of the domestic carrier (water, rail, road, air transport);

ü payment for the transportation of goods from the point of departure to the main means of transportation;

ü payment of expenses for loading goods on the main means of transportation at the point of export;

ü payment of the cost of transportation of goods by international transport;

ü payment for cargo insurance in transit;

ü expenses for storage of goods in transit, reloading, and repacking;

ü the cost of unloading the goods at the destination;

ü expenses for the delivery of goods from the destination to the buyer's warehouse;

ü payment customs duties, taxes and fees when crossing the customs border.

Those costs for the delivery of the goods, which are borne by the seller, are included in the price of the goods. The listed conditions are called basic because they establish the basis - the basis of the price of a foreign trade transaction and affect the level of the price of goods transported across the border of counterparty countries.

7.4. Classification of basic terms of supply.

In the modern version of INCOTERMS, 11 terms are presented, which are combined into 4 groups.

1 group E– Ex works... (name of point), there is no obligation to conclude a contract of carriage, the risk lies with the buyer, the seller provides the goods to the buyer directly at his premises.

EXW: (importer)- ex-factory.

Franco (Italian)– the buyer is free from all risks and costs for the delivery of goods to the point indicated by the word free.

2 group F– the seller undertakes to place the goods at the disposal of the carrier, which is provided by the buyer (the main carriage is not paid).

FCA– free carrier (railway transport, road transport, air transport);

FAS– free along the side of the ship (the seller is obliged to deliver the goods to the specified port along the side of the ship);

FOB- Free on board.

3 group C– the seller undertakes to conclude a contract of carriage, but without assuming the risk of accidental loss or damage to the goods after loading (the seller pays the main carriage).

CFR– cost and freight;

CIF– cost, insurance and freight;

CPT– transportation is paid until … (destination);

CIP– carriage and insurance paid up to … .

4 group D– the seller bears all costs and assumes all risks until the goods are delivered to the country of destination (arrival group).

DAT– Delivery at the terminal (terminal name);

DAP– Delivery at the place of destination (name of place);

DDP- delivery with payment of duty.

Category E Shipping	EXW	any kind of transport	EX Works (... named place)
Category F Main carriage not paid by the seller	FCA		Free Carrier (...named place)
FAS	maritime and inland waterway transportation	Free Alongside Ship (... named port of shipment)
FOB	maritime and inland waterway transportation	Free On Board (... named port of shipment)
Category C Main carriage paid by the seller	CFR	any kind of transport	Cost and Freight (... named port of destination)
CIF	any kind of transport	Cost, Insurance and Freight (... named port of destination)
CIP	any kind of transport	Carriage and Insurance Paid To (... named place of destination)
CPT	any kind of transport	Carriage Paid To (... named place of destination)
Category D Shipping	DAT	any kind of transport	new!!! Delivered At Terminal (... named terminal of destination)
DAP	any kind of transport	new!!! Delivered At Piont (... named point of destination)
DDP all modes of transport Delivered Duty Paid (... named place of destination) Delivered Duty Paid (... named place of destination)

Category E - Shipment EXW (EX Works (... named place)) Ex Works (... named place) enterprise or other named place (for example: in a plant, factory, warehouse, etc.). The seller is not responsible for loading the goods onto the vehicle, as well as for customs clearance of the goods for export.

1. ShipmentFCA (Free Carrier (...named place)) The term "Free Carrier" means that the seller delivers the cleared goods to the carrier named by the buyer at the named place. It should be noted that the choice of place of delivery will affect the obligation to load and unload the goods at that place. If delivery takes place at the seller's premises, the seller is responsible for shipping. If the delivery is made to another place, the seller is not responsible for the shipment of the goods. This term can be used for transportation by any mode of transport, including multimodal transportation.

2. FAS (Free Alongside Ship (... named port of shipment)) The term "Free Alongside Ship" means that the seller has made delivery when the goods are placed alongside the ship on the quay or in lighters at the named port of shipment. This means that from now on, all costs and risks of loss or damage to the goods must be borne by the buyer. Under the terms of the term FAS the seller is responsible for clearing the goods for export. THIS EDITION DIFFERS IN THIS EDITION FROM PREVIOUS EDITIONS OF INCOTERMS IN WHICH THE RESPONSIBILITY FOR CUSTOMS CLEARANCE FOR EXPORT IS RESPONSIBLE TO THE BUYER. This term can only be used when goods are transported by sea or inland waterways.

3. FOB (Free On Board (... named port of shipment)) The term "free on board" means that the seller has delivered when the goods have passed the ship's rail at the named port of shipment. This means that from now on, all costs and risks of loss or damage to the goods must be borne by the buyer. Under the terms of the term FOB the seller is responsible for clearing the goods for export. This term can only be used when goods are transported by sea or inland waterways. If the parties do not intend to deliver the goods across the ship's rail, the FCA term should be used.

1. CFR (Cost and Freight (... named port of destination)) Cost and Freight (... named port of destination) The term "Cost and Freight" means that the seller has made delivery when the goods have passed the ship's rail at the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination, HOWEVER, the risk of loss of or damage to the goods, and any additional costs arising after the shipment of the goods are transferred from the seller to the buyer. Under the terms of the term CFR the seller is responsible for clearing the goods for export. This term can only be used when goods are transported by sea or inland waterways. If the parties do not intend to deliver the goods across the ship's rail, the term CPT should be used.

2. CIF (Cost, Insurance and Freight (... named port of destination)) Cost, insurance and freight (... named port of destination) The term "Cost, Insurance and Freight" means that the seller has delivered when the goods have passed the ship's rail at the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination, BUT the risk of loss or damage to the goods, as well as any additional costs incurred after the goods have been shipped, is transferred from the seller to the buyer. However, under the terms CIF the seller is also obliged to purchase marine insurance in favor of the buyer against the risk of loss and damage to the goods during transport. Therefore, the seller is obliged to conclude an insurance contract and pay insurance premiums. The buyer should take into account that according to the terms of the term CIF, the seller is required to provide insurance with only minimal coverage. Under the terms of the term CIF the seller is responsible for clearing the goods for export. This term can only be used when goods are transported by sea or inland waterways. If the parties do not intend to deliver the goods across the ship's rail, the term CIP should be used.

3. CIP (Carriage and Insurance Paid To (... named place of destination)) Freight/Carriage and Insurance Paid to (... named place of destination) The term "Freight/Carriage and Insurance Paid to" means that the seller will deliver the goods named carrier. In addition, the seller must pay the costs associated with the carriage of the goods to the named destination. This means that the buyer assumes all risks and any additional costs after the delivery of the goods in this way. However, under the terms CIP the seller is also obliged to provide insurance against the risks of loss and damage to the goods during transport in favor of the buyer. Consequently, the seller concludes an insurance contract and pays insurance premiums. The buyer should take into account that according to the terms of the term CIP the seller is required to provide minimum coverage insurance. In the event that the buyer wishes to have insurance with greater coverage, he must either specifically agree on this with the seller, or take steps to conclude additional insurance himself. The word "carrier" means any person who, on the basis of a contract of carriage, undertakes to provide for himself or arrange for the carriage of goods by railway, road, air, sea and inland water transport or a combination of these modes of transport. In the case of carriage to the destination by several carriers, the transfer of risk will occur when the goods are placed in the care of the first carrier. Under the terms of the term CIP the seller is responsible for clearing the goods for export. This term can be used when transporting goods by any mode of transport, including multimodal transport.

4. CPT (Carriage Paid To (... named place of destination))
Freight/carriage paid to (... named place of destination) The term "Freight/Carriage Paid To" means that the seller will deliver the goods to the carrier named by him. In addition, the seller must pay the costs associated with the carriage of the goods to the named destination. This means that the buyer assumes all risks of loss or damage to the goods, as well as other costs after the goods are handed over to the carrier. The word "carrier" means any person who, on the basis of a contract of carriage, assumes the obligation to ensure or organize the transport of goods by rail, road, air, sea and inland water transport or a combination of these modes of transport. In the case of carriage to the agreed destination by several carriers, the transfer of risk will occur when the goods are placed in the care of the first of them. Under the terms of the term SRT the seller is responsible for clearing the goods for export.
This term can be used when transporting goods by any mode of transport, including multimodal transport.

1. DAT (Delivered At Terminal (... named terminal of destination))
Delivery at the terminal (...terminal name) The term "Delivered at Terminal" (named place of destination) means that the seller is deemed to have fulfilled his obligations when the goods released under the customs regime of export are delivered by him to the agreed terminal of the named place of destination. The term "terminal" in the DAT delivery basis means any place, incl. air / auto / railway cargo terminal, pier, warehouse, etc. The Incoterms DAT delivery basis obliges the seller to bear all costs and risks associated with transporting the goods and unloading them at the terminal, including (where required) any fees for export from the country of destination. The word "fees" here means the responsibility and risks for carrying out customs clearance, as well as for paying customs formalities, customs duties, taxes and other fees. The term DAT can be used for the carriage of goods by any mode of transport, including multimodal transport.

2. DAP (Delivered At Piont (... named point of destination))
Delivery at location (... name of location) The term "Delivered at the point" (named place of destination) means that the seller has fulfilled his obligation to deliver when he has provided the buyer with the goods ready to be unloaded from the means of transport arriving at the agreed destination. The delivery basis of Incoterms DAP imposes on the seller the obligation to export customs clearance of the goods. The term DAP can be used for the carriage of goods by any mode of transport, including multimodal transport.

Two new Incoterms - DAT (Delivered at Terminal) and DAP (Delivered at Destination) - have replaced the following Incoterms 2000 terms: DAF (Delivered at Frontier), DES (Delivered from Ship), DEQ (Delivered from Quay) and DDU (Delivered without paying fees)

3. DDP (Delivered Duty Paid (... named place of destination))
Delivered Duty Paid (...named place of destination) The term "Delivered Duty Paid" means that the seller delivers the goods, cleared for customs and not unloaded from the arriving means of transport, at the disposal of the buyer at the named place of destination. The seller must bear all costs and risks associated with the transportation of the goods, including (where required). Any fees for importation into the country of destination (the word "fees" here means the responsibility and risks for carrying out customs clearance, as well as for paying customs formalities, customs duties, taxes and other fees). While the EXW term imposes minimal obligations on the seller, the term DDP involves the maximum obligations of the seller. This term cannot be applied if the seller cannot, directly or indirectly, obtain an import license. If the parties wish the buyer to assume all risks and costs of importing the goods, the term DDU should be used. This term can be used regardless of the mode of transport, but when the delivery is made on board a ship or at a quay in the port of destination, the terms DES or DEQ should be used.