Incoterms 2010 II (back / more)

Some Notations in Incoterms® 2010

Deliver and procure - In the sale of commodities, cargo is frequently sold several times during transit “down a string”. So, a seller in the middle of the string does not “ship” the goods because these have already been shipped by the first seller in the string. The said seller performs its obligations towards its buyer not by shipping the goods, but by “procuring” goods that have been shipped. For clarification purposes, Incoterms® 2010 rules include the obligation to “procure goods shipped” as an alternative to the obligation to ship goods in the relevant Incoterms rules.
For the “sea rules” of Incoterms (such as, FOB, CFR, and CIF), all mention of the ship’s rail as the point of delivery has been omitted in preference to the goods being delivered when they are “on board” the vessel. This more closely reflects modern commercial reality and avoids the rather dated image of risk swinging to and from across an imaginary perpendicular line (ship?s rail).

Incoterms® 2010 Classified

The number of terms in is decreased from 13 (as in Incoterms 2000) to 11 due to integrating DAF (Delivered at land Frontier), DES (Delivered Ex Ship), and DDU (Delivered Duty Unpaid) as DAP (Delivered At Place).

Table 1: Rules of Incoterms® 2010 Classified by Modes of Transport and Kind of Delivery Contract
	Group E - Departure	Group F - Main Carriage Non Paid	Group C - Main Carriage Paid	Group D - Arrival
Rules for Any Modes of Transport	EXW	FCA	CPT, CIP	DAT, DAP, DDP
Rules for Sea and Inland Waterway Transport		FAS, FOB	CFR, CIF

Table 2: Main Seller's and Buyer's Respesobilities/Risks by INCOTERMS 2010 Groups
Seller	Buyer
Group F (FCA , FAS, FOB) is considered to be “Shipment Contracts” and “Buyer Friendly”
Handles Export Clearance (if any) Handles Pre-carriage Named Place on Seller’s Side	Contracts for Main Carriage In charge of Carrier (and usually forwarder) selection Control over Freight Costs Control of Documentation
Group C (CPT ,CIP, CFR, CIF) is considered to be “Shipment Contracts” and “Seller Friendly”
Contracts for Main Carriage In charge of carrier (and usually forwarder) selection Handles pre-carriage Has control over freight costs In control of documentation Passes risk of loss (delivers) to Buyer prior main carriage Handles export clearance	Has risk of loss while goods are in transit with carrier selected and paid for by seller Must rely heavily on Seller for data elements required for ocean shipments Named Place is on Buyer’s side
Group D (DAT ,DAP, DDP) is considered to be “Arrival Contracts”
Contracts for Main Carriage In charge of carrier (and usually forwarder) selection Handles pre-carriage Has control over freight costs In control of documentation Passes risk of loss (delivers) to Buyer at freight arrival point Handles export (import – DDP case) clearance	Has risk of loss while goods are in transit with carrier selected and paid for by seller Must rely heavily on Seller for data elements required for ocean shipments. Named Place is on Buyer’s side

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