INCO TERMS

INCOTERMS (International Commercial Terms) were developed by the international chamber of commerece (ICC). they are a uniform set of rules designed for interpretation of international transaction.
The rules were first published in 1936 and have been revised periodically to account for changing modes of transport and document delivery. It has been updated six times. Incoterms 2000 contain13 rules for standardized global trade, defining the most important responsibilities of buyers and sellers in international sales contracts. In order to ensure the new Incoterms 2000 terms are being applied, buyers and sellers should specify Incoterms 2000 on all contracts, thus clearly identifying the source of reference for the definition. Traders using these rules should also clearly specify any and all agreed to variations of the terms. It is not possible for Incoterms to be complete and comprehensive. Variations in local trades, ports and customs are possible. Buyers and sellers must take care when applying the rules to account for these parties, by agreement, to suit any particular contract or circumstance.

Definition of various INCO Terms.

EXW: Ex Works at a named point of origin (e.g., ex factory, ex mill, ex warehouse). Under this term, the price quoted applies only at the point of origin and the seller agrees to place the goods at the disposal of the buyer at the specified place on the date or within the period fixed. All other charges are for the account of the buyer.

FCA: Free Carrier, to a named place. This term replaces the former "FOB named inland port" to designate the seller's responsibility for the cost of loading goods at the named shipping point. It may be used for multimode transport, container stations, and any mode of transport, including air. The seller is responsible for loading goods into the means of transportation; the buyer is responsible for all subsequent expenses. If a port of exportation is named, the costs of transporting the goods to the named port are included in the price.

DEQ: Delivered Ex Quay (Duty Paid), at a named port -- the seller fulfils his obligation when the goods have been made available to the buyer on the wharf at the named port of destination, cleared for importation. The seller has to bear all risks and costs including duties, taxes, and other charges of delivering the goods to the quay. The seller is obligated to obtain the import license, either directly or indirectly. Only used for sea or inland waterway transport.

I do understand that I am exceeding the limit but I think I have put great deal of effort in preparing this table and this table itself is complete in explaining the whole INCOTERMS.

The following chart shows which of the parties is responsible for what functions under the different INCOTERM designations. An (X) indicates that the seller is responsible for that function; a minus sign (-) indicates that the buyer is responsible; (N) indicates that the responsibility is negotiable.

				seller's premises	Carrier premises
		Fees and Costs
			EXW	FCA	FCA	FAS	FOB	CFR	CPT	CIF
	Premises or Named place	Buyers Product Cost	X	X	X	X	X	X	X	X
		International Packaging	X	X	X	X	X	X	X	X
		Certification Fees	X	X	X	X	X	X	X	X
		Inspection Fees	X	X	X	X	X	X	X	X
	Loading Inland	Custom Clearance fees		X	X	X	X	X	X	X
		Loading Fees	-	X	X	X	X	X	X	X
		Cartage Fees	-	X	X	X	X	X	X	X
	Inland handling	Inland Freight	-	-	X	X	X	X	X	X
		Reconsignment Fees	-	-	X	X	X	X	X	X
		Pier Delivery Charges	-	-	X	X	X	X	X	X
	Loading at Vessel	Loading Cost	-	-	-	-	X	X	X	X
		Forwarding Fees	-	-	-	-	X	X	X	X
		Consular Fees	-	-	-	-	X	X	X	X
	Voyage	International Freight	-	-	-	-	-	X	X	X
		Insurance	-	-	-	-	-	-	-	X
										(Port of destination)
		Bank Fees	N	N	N	N	N	N	N	N
		Buyers Bank Fees	X	X	X	X	X	X	X	X
	Unloading at Port	Unloading Fees	-	-	-	-	-	-	-	-
		Import Duty	-	-	-	-	-	-	-	-
		Import Broker	-	-	-	-	-	-	-	-
		Cartage from Pier	-	-	-	-	-	-	-	-
	Inland handling	Inland Freight at Destination	-	-	-	-	-	-	-	-
		Warehousing	-	-	-	-	-	-	-	-
		Documentation
			EXW	FCA	FCA	FAS	FOB	CFR	CPT
		Proforma Invoice	X	X	X	X	X	X	X
		Packing List	X	X	X	X	X	X	X
		Certificate of Origin	X	X	X	X	X	X	X
		Bill of Lading	X	X	X	X	X	X	X
		Commercial Invoice	X	X	X	X	X	X	X
		Export Declaration	N	N	N	N	X	X	X
		Validated Export License	N	N	N	N	X	X	X
		Import License	-	-	-	-	-	-	-
		Who is:
		Exporter of Record?	Buyer	Buyer	Buyer	Seller	Seller	Seller	Seller
		Importer of Record?	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer

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	Fees and Costs
		CIF	CIP	DAF	DES	DEQ	DDU	DDP
Premises or Named place	Buyers Product Cost	X	X	X	X	X	X	X
	International Packaging	X	X	X	X	X	X	X
	Certification Fees	X	X	X	X	X	X	X
	Inspection Fees	X	X	X	X	X	X	X
Loading Inland	Custom Clearance fees	X	X	X	X	X	X	X
	Loading Fees	X	X	X	X	X	X	X
	Cartage Fees	X	X	X	X	X	X	X
Inland handling	Inland Freight	X	X	X	X	X	X	X
	Reconsignment Fees	X	X	X	X	X	X	X
	Pier Delivery Charges	X	X	X	X	X	X	X
Loading at Vessel	Loading Cost	X	X	X	X	X	X	X
	Forwarding Fees	X	X	X	X	X	X	X
	Consular Fees	X	X	X	X	X	X	X
Voyage	International Freight	X	X	X	X	X	X	X
	Insurance	X	X	X	X	X	X	X
		(Port of destination)	(Named destination)	(Up to frontier)	(Up to Ex ship, at named port)	(Final Port of destination)
	Bank Fees	N	N	N	N	N	N	N
	Buyers Bank Fees	X	X	X	X	X	X	X
Unloading at Port	Unloading Fees	-	-	-	-	X	X	X
	Import Duty	-	-	-	-	X	X	X
	Import Broker	-	-	-	-	X	-	X
	Cartage from Pier	-	-	-	-	-	-	X
Inland handling	Inland Freight at Destination	-	-	-	-	-	-	X
	Warehousing	-	-	-	-	-	-	X
	Documentation
		CIF	CIP	DAF	DES	DEQ	DDU	DDP
	Proforma Invoice	X	X	X	X	X	X	X
	Packing List	X	X	X	X	X	X	X
	Certificate of Origin	X	X	X	X	X	X	X
	Bill of Lading	X	X	X	X	X	X	X
	Commercial Invoice	X	X	X	X	X	X	X
	Export Declaration	X	X	X	X	X	X	X
	Validated Export License	X	X	X	X	X	X	X
	Import License	-	-	-	-	X	X	X
	Who is:
	Exporter of Record?	Seller	Seller	Seller	Seller	Seller	Seller	Seller
	Importer of Record?	Buyer	Buyer	Buyer	Buyer	Seller	Seller	Seller

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		DDU	DDP
Premises or Named place	Buyers Product Cost	X	X
	International Packaging	X	X
	Certification Fees	X	X
	Inspection Fees	X	X
Loading Inland	Custom Clearance fees	X	X
	Loading Fees	X	X
	Cartage Fees	X	X
Inland handling	Inland Freight	X	X
	Reconsignment Fees	X	X
	Pier Delivery Charges	X	X
Loading at Vessel	Loading Cost	X	X
	Forwarding Fees	X	X
	Consular Fees	X	X
Voyage	International Freight	X	X
	Insurance	X	X
	Bank Fees	N	N
	Buyers Bank Fees	X	X
Unloading at Port	Unloading Fees	X	X
	Import Duty	X	X
	Import Broker	-	X
	Cartage from Pier	-	X
Inland handling	Inland Freight at Destination	-	X
	Warehousing	-	X
	Documentation
		DDU	DDP
	Proforma Invoice	X	X
	Packing List	X	X
	Certificate of Origin	X	X
	Bill of Lading	X	X
	Commercial Invoice	X	X
	Export Declaration	X	X
	Validated Export License	X	X
	Import License	X	X
	Who is:
	Exporter of Record?	Seller	Seller
	Importer of Record?	Seller	Seller