(This basis is only suitable for deliveries by water transport)
Seller’s Responsibilities:
1.Go through export customs formalities with payment of duties (if required).
2.Deliver the goods to the ship specified by the buyer.
Buyer’s responsibilities:
1.Insure the product.
2.Deliver the cargo to the destination country.
3.Unload the goods at the destination port.
4.Go through import customs clearance with payment of customs duties and fees.
Transfer of risks from the seller to the buyer: when placing goods on the berth — along the side of the vessel.
(This basis is only suitable for deliveries by water transport)
Seller’s Responsibilities:
1. Go through export customs formalities with payment of duties (if required).
2. Deliver the goods to the port.
3. Load the goods onto the vessel specified by the buyer.
Buyer’s responsibilities:
1. Insure The Product.
2. Deliver the cargo to the destination country.
3. Unload the goods at the destination port.
4. Go through import customs clearance with payment of customs duties and fees.
Transfer of risks from the seller to the buyer: after the goods have arrived on board the vessel, this is recorded by a mark of acceptance in the bill of lading.
(This basis is only suitable for deliveries by water transport.)
Seller’s Responsibilities:
1. Go through export customs formalities with payment of duties (if required).
2. Deliver the goods to the port.
3. Load the goods onto the ship.
4. Deliver to the port to the buyer.
Buyer’s responsibilities:
1. Insure the product.
2. Unload the goods at the destination port.
3. Go through import customs clearance with payment
of customs duties and fees.
Transfer of risks from the seller to the buyer:
from the moment the cargo is placed on the ship.
(This basis is only suitable for deliveries by water transport)
Seller’s Responsibilities:
1.Insure the cargo.
2. Go through export customs formalities with payment of duties (if required).
3.Deliver the goods to the port.
4.Load the goods onto the ship
Buyer’s responsibilities:
1.Unload the goods at the destination port.
2.Go through import customs clearance with payment of customs duties and fees.
Transfer of risks from the seller to the buyer: when the seller placed the cargo on the ship in the port.
(This basis is similar to CIP, except for one condition: the seller
is not obliged to insure the cargo.)
Seller’s Responsibilities:
1. Go through export customs formalities with payment of duties
(if required).
2.Load the goods onto the vehicle.
3.Deliver to the buyer
Buyer’s responsibilities:
1. Insure The Product.
2.Go through import customs clearance with payment of customs duties and fees.
3.Unload the goods at the destination warehouse
Transfer of risks from seller to buyer: when the seller has shipped the goods to the carrier.
Since January 1, 2020, a new version of Incoterms – Incoterms 2020 has entered into force, which reflects modern international trade practices and takes into account current market needs.
Incoterms 2020 represents 11 basic conditions for the supply of goods used in international trade (international trade terms).
The possibility of using Incoterms in domestic trade as a trade custom (business practice) adopted in the Russian Federation was confirmed by the Chamber of Commerce and Industry of the Russian Federation in 2012.
WHAT HAS CHANGED
FCA – an additional option is provided.
The FCA Incoterms 2020 rule provides for the following additional option: By agreement of the parties, it may be provided that the Buyer instructs the carrier to issue an on-board bill of lading for the seller after loading the goods on board, and the Seller then becomes obliged to transfer this bill of lading to the buyer (usually through a bank). This option is useful for the purposes of letter of credit disclosure.
For container transportation, it is still recommended to use the term FCA rather than FOB, since the Seller transfers the container cargo to the Buyer before loading by the carrier on board the ship.
CIF and CIP are different levels of minimum insurance coverage.
For CIF, the minimum coverage is in accordance with a reservation from the Institute of London Insurers: a certain number of risks, in particular fire or explosion, sinking of a ship or stranding, capsizing of a ship, its collision with an external object, unloading of a ship in a port of distress.
For CIP – minimum insurance coverage