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THE STRUCTURE OF INCOTERMS

 
 
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 INCOTERMS 2000CFRCIFCIPCPTDAFDDPDDUDEQDESEXWFASFCAFOB

THE STRUCTURE OF INCOTERMS

In 1990, for ease of understanding, the terms were grouped in four basically different categories; namely starting with the term whereby the seller only makes the goods available to the buyer at the seller's own premises (the "E" term Ex works); followed by the second group whereby the seller is called upon to deliver the goods to a carrier appointed by the buyer (the "F" terms FCA, FAS and FOB); continuing with the "C" terms where the seller has to contract for carriage, but without assuming that risk of loss of or damage to the goods or additional costs due to events occurring after shipment and dispatch (CFR, CIF, CPT and CIP) and, finally the "D" terms whereby the seller has to bear all costs and risks needed to bring the goods to the place of destination (DAF, DES, DEQ, DDU and DDP). The following chart sets out this classification of the trade terms.

Group E Departure
EXW Ex Works

Group F Main carriage unpaid
FCA Free Carrier (... named place)
FAS Free Alongside Ship (...named port of shipment)
FOB Free On Board (... named port of shipment)

Group C Main carriage paid
CFR Cost and Freight (... named port of destination)
CIF Cost, Insurance and Freight (... named port of destination)
CPT Carriage Paid To (... named place of destination)
CIP Carriage and Insurance Paid To (... named place of destination)

Group D Arrival
DAF Delivered At Frontier (... named place)
DES Delivered Ex Ship (... named port of destination)
DEQ Delivered Ex Quay (... named port of destination)
DDU Delivered Duty Unpaid (... named place of destination)
DDP Delivered Duty Paid (... named place of destination)

Further, under all terms, as in Incoterms 1990, the respective obligations of the parties have been grouped under 10 headings where each heading on the seller's side Ā«mirrorsĀ» the position of the buyer with respect to the same subject matter.


1. PURPOSE AND SCOPE OF INCOTERMS
2. WHY REVISIONS OF INCOTERMS?
3. INCOTERMS
4. INCORPORATION OF INCOTERMS INTO THE CONTRACT OF SALE
5. THE STRUCTURE OF INCOTERMS
6. TERMINOLOGY
7. THE SELLER'S DELIVERY OBLIGATIONS
8. PASSING OF RISKS AND COSTS RELATING TO THE GOODS
9. THE TERMS
10. THE EXPRESSION "NO OBLIGATION"
11. VARIANTS OF INCOTERMS
12. CUSTOMS OF THE PORT OR OF A PARTICULAR TRADE
13. THE BUYER'S OPTIONS ASTOTHE PLACE OF SHIPMENT
14. CUSTOMS CLEARANCE
15. PACKAGING
16. INSPECTION OF GOODS
17. MODE OF TRANSPORT AND THE APPROPRIATE INCOTERM 2000
18. THE RECOMMENDED USE
19. THE BILL OF LADING AND ELECTRONIC COMMERCE
20. NON-NEGOTIABLE TRANSPORT DOCUMENTS INSTEAD OF BILLS OF LADING
21. THE RIGHT TO GIVE INSTRUCTIONS TO THE CARRIER
22. ICC ARBITRATION



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