Incoterms

Ocean Sped International Forwarding, with headquarters and management in Genoa, is the intermediary that organizes the shipment, through a mandate contract with which it assumes the obligation to conclude, in its own name or on behalf of the principal, a transport contract and to carry out ancillary operations (eg customs operations). Ocean Sped undertakes, under the conditions established by the contract, to deliver the goods, to transfer the ownership and to deliver all the necessary documents. In consideration of the many rules, uses and customs in force in the various countries, considering also the operational and language differences, relies on the Incoterms codification which is a set of standardized rules, the most widespread in international commercial practices, in order to avoid misunderstandings and controversies.

 

The terms of surrender “Incoterms”, abbreviation from the English “International COmmercial TERMS”, are a universally recognized and known codification, ie “international commercial terms”, of the International Chamber of Commerce of Paris, which are intended to establish unequivocally liability, obligations and risks borne by the seller and the buyer involved in a transaction of goods in international sales. They therefore provide uniform international rules for the delivery of goods, through eleven commercial terms, which are included in the purchase / shipment contracts.

 

The first rules were published in 1936 as “Incoterms 1936”, with subsequent modifications made in 1953, 1967, 1976, 1980, 1990, 2000, 2010 which are currently the Incoterms of reference, but the International Chamber of Commerce (ICC) is already working to draft the Incoterms 2020.

Depending on the obligations and risks between seller and buyer, Incoterm 2010 are divided into 4 groups:

 

  • Group E (from “Ex”, departure)

It includes 1 abbreviation “Incoterms ExWorks / Free Factory”, in which the major responsibilities are borne by the purchaser.

 

  • Group F (from “Free”, franco)

Includes 3 abbreviations, “Free Carrier / Free Carrier”, “Free Alongside Ship / Franco Lungo Bordo”, “Free On Board / Franco on Board”, in which the seller bears the costs and risks of the transport until the delivery of the goods to the carrier , then from that moment on, the obligation to be paid by the buyer.

 

  • Group C (from “Cost” or “Carriage”)

It includes 4 abbreviations, “Cost and Freight / Cost and Freight”, “Cost, Insurance and Freight / Cost, Insurance and Freight”, “Carriage paid to … / Transport paid up to …”, Carriage and Insurance paid to … / Transport and Insurance paid up to… ”in which they assign the costs of transport to the established location to the seller, but not the relative risks.

 

  • Group D (from “Delivered”, delivered)

It includes 3 abbreviations, “Delivered at Place / Return Terminal”, “Delivered at Place / return not cleared through customs”, “Delivered Duty Paid / Returns cleared through customs” in which the highest responsibilities are assigned to the seller, which include transport costs and risks, until delivery.

 

Meaning of the individual terms according to the competence of the different Incoterms clauses:

 

  • Incoterms ExW ((Ex Works / Ex Works)

With the ExW Incoterms clause – the buyer takes responsibility for the entire transport responsibilities and costs, starting from the place where the goods are picked up. However, it also includes various risks for the transferor. This clause is under review.

 

  • Incoterms FCA (Free Carrier)

With the FCA Incoterms clause, the seller sends the goods to the point agreed with the buyer (eg terminal, warehouse, etc.) to be delivered to the carrier. The seller retains the export customs clearance at his own expense, but hence the responsibility and costs are borne by the buyer.

 

  • Incoterms FAS(Free Alongside Ship)

With the FAS Incoterms clause – a clause reserved for maritime transport – the seller bears responsibility and transport costs up to the delivery of the goods at the dock in the port of shipment.

 

  • Incoterms FOB (Free On Board)

With the FOB Incoterms clause – a clause reserved for maritime transport – the seller bears responsibility and costs until the delivery of the goods on board the ship, in addition to the customs export operation.

 

  • Incoterms CFR (Cost and freight)

With the CFR Incoterms clause, the seller assumes the costs of transport to the port of destination, while the responsibility is borne by the buyer from the moment the goods are on board the ship.

 

  • Incoterms CIF (Cost Insurance and Freight)

With the CIF Incoterms clause, the seller assumes the responsibilities and costs of transport to the port of destination.

 

  • Incoterms CPT (Carriage paid to / Paid transport up to…)

With the CPT Incoterms clause – often used in the case of transport by air – the seller sends the goods to the point agreed with the buyer (eg terminal, warehouse, etc.) to be delivered to the carrier. The seller bears responsibility for shipping costs up to the place agreed with the buyer as well as for export customs clearance.

 

  • Incoterms CIP (Carriage and Insurance paid to / Transportation and Insurance paid up to…)

With the CIP Incoterms clause – often used in the case of transport by air – the seller sends the goods to the point agreed with the buyer (eg terminal, warehouse, etc.) to be delivered to the carrier. The seller bears responsibility for shipping costs up to the place agreed with the buyer as well as for export customs clearance. The seller also has the obligation to cover the insurance of the goods.

 

  • Incoterms DAT (Delivered at terminal / Reso al terminal)

With the DAT Incoterms clause, the seller takes responsibility for the transportation costs of the goods to the agreed terminal (terminal, warehouse, quay, airport, etc.) which must be explicitly indicated, including the costs of disembarking or unloading. The buyer is responsible for the customs operations for the importation and the related costs.

 

  • Incoterms DAP (Delivered at Place / Reso al luogo di destinazione)

With the DAP incoterms clause, the seller is responsible for covering responsibility and shipping costs up to the agreed place, until the goods are ready to be unloaded, but not cleared through customs as an operation borne by the buyer.

 

  • Incoterms DDP (Delivered Duty Paid)

With the DDP Incoterms clause – which is the opposite of the Ex Works Incoterms clause – the seller bears responsibility and costs for all transport to the place of destination, where the goods must be unloaded, including customs clearance.

Address
OCEAN SPED S.R.L.
Vico Chiuso Paggi 4/13, 16128 Genoa (GE) – Italy
P. Iva 03477790103
R.E.A.: GE – 348192
Cap. Soc. € 100.000,00 i.v.
Contacts
Tel: +39 010 2469246
Fax: +39 010 2468467
Skype: oceansped
Skype: ocean.sped.srl1

 

 

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