Samenvatting - Import & Export Management

Import and Export Management
Chapter 1: Incoterms ® 2020
 Incoterms = International Commercial Terms
1. Necessity of international rules
 Seller delivers, buyer pays -> Free to make further arrangements -> Each
country had its own system
 Set of internationally recognized standardized trade terms published by
the International Chamber of Commerce (ICC)
 Define the allocation of costs/risks/tasks involved in international trade
 Provide clarity and uniformity
 Commercial relevance of Incoterms ®
o Cost calculation of contract price
o Costs of transport, documents
 Operational relevance of Incoterms ®
o Who does what, when, where?
o At who’s expense and risk?
 Costs/tasks
o Transport
o Loading/unloading/handling
o Checking/Packaging/Marking/ Weighing/Measuring
o Insurance
o Customs formalities (export/import/transit)
 Risks
o Packing/Conditioning (humidity, temperature)
o Manipulation/Loading/Discharge/Stuffing/Transhipment
o Jettison and washing overboard
o Accidents and catastrophes
o Fire/combustion
o Malicious damage/Vandalism/Piracy
o Theft/Non-arrival/Disapearance
 International Chamber of Commerce – responsible entity for the
Incoterms®
o First set of Incoterms® were published in 1936 (6 trade terms)
 FAS, FOB, C&F, CIF, Ex Ship and Ex Quay
o Incoterms are revised +/- every 10 years
o Most recently implemented version - Incoterms ®2020 (11 trade
terms)
2. Introduction to Incoterms ® 2020
 Division of costs, risks and tasks between seller and buyer
 Incoterms
o Are not legal requirements
o Are only applicable if referred to in a contract
 Reference: CFR Altamira (Mexico), Incoterms ® 2020
o CFR = Delivery term
o Altamira (Mexico) = Place of delivery / destination (with precision)
o ® = Trademark to refer to rules
o 2020 = Version of Incoterms ®
 Which Incoterm shall we use?
o Mode of transport: how, possible?

, o Control over documents, transport?
o Risks of transport, liability?
o Position during negociation?
o Can we arrange customs formalities?
o Are there any political risks, social risks?
o Profitable rates for carriage and insurance?
 Incoterms do and do not

Incoterms do Incoterms do not
Determine who bears risk of Replace a sales contract
transport
Determine who pays which costs Indicate which documents are
needed
Determine who does what in a Determine payment conditions
delivery of goods
Oblige buyer or seller to arrange for Determine transfer of property or
transport and export/import licenses title
Oblige seller to insure (in case of CIF Oblige the buyer to insure goods
and CIP)
 Use incoterms
o To establish a clear division
o Of costs and risks and tasks
o Between the buyer and the seller
o Concerning the delivery of the goods
 4 groups of Incoterms ®
o E-group: Departure
 Sellers obligation at its minimum
 EXW
o F-group: Main carriage unpaid by seller
 FCA
 FAS
 FIB
o C-group: Main carriage paid by seller
 CPT
 CIP
 CFR
 CIF
o D-group: Paid until arrival
 Seller’s obligation at its maximum
 Delivered in port or at the place of destination
 DAP
 DPU
 DPP
 Multimodal terms – For any kind of transport
o EXW
o FCA
o CPT
o CIP
o DAP
o DPU
o DDP
 Unimodal terms: Sea transport and inland waterways
o FAS
o FOB

, o CFR
o CIF
 Delivery in Incoterms
o Placing the goods at the disposal of the buyer
 The goods have not moved yet, they haven’t reached the final
destination
o Hand them over for carriage
 Goods are handed over to a carrier
o Deliver them at destination
 Literal meaning of delivery, risks transfer at destination
o Depending on the Incoterm chosen
 Order within Incoterms
o A1/B1: general obligations
o A2/B2: delivery/taking delivery
o A3/B3: transfer of risks
o A4/B4: carriage
o A5/B5: Insurance
o A6/B6: delivery document/transport document
o A7/B7: export clearance/import clearance
o A8/B8: checking/packaging/marking
o A9/B9: allocations of costs
o A10/B10: notices
o A = Seller, B = Buyer

3. Analysis of incoterms ® 2020
3.1.EXW (Ex Works)
 Place of delivery
 The seller fulfills his obligation to deliver the goods when he places the
goods at the disposal of the buyer at the seller’s premises or another
named place
 Goods not cleared for export
 Goods not loaded on any collecting vehicle
 Seller provides commercial invoice, packing list and manufacturer’s
declaration / conformity





 3 pitfalls
o Packaging
o Loading equipment
 Seller will load the goods unless they don’t have any loading
equipment
o Customs export formalities
 EXW
o Suitable for domestic trade
o Specify place of delivery as clearly as possible + costs and risks for account
of the seller
o For export formalities only assistance (No obligation)
 Transfer of risk / Place of delivery  Goods at the disposal of the buyer
 Transfer of costs  Goods at the disposal of the buyer
 Export formalities  Buyer

,  Import formalities  Buyer
3.2.FCA (Free Carrier)
 Place of delivery
 The seller fulfills his obligation to deliver the goods cleared for export, to
the carrier nominated by the buyer at the named place
 2 situations
o If delivery occurs at the seller’s premises, the seller is responsible
for loading (Loaded)  FCA seller’s premises
 Loading means
 Pick up the goods
 Place on board
 Place in the vehicle
 Loading does not mean
 Stowing
 Securing





o If elsewhere, the seller is not responsible for unloading (Ready for
unloading)  FCA Terminal
 Pre carriage organized by seller
 Unloading is organized by buyer





 3 types:
 FCL = Full Container Load
o One consignment from one supplier
o  FCA Seller’s premises
 LCL = Less Container Load
o Several consignments from multiple buyers
 NVOCC = Non-Vessel-Operating Common Carrier
o Consolidate cargo / shipments
 Transfer of risk / Place of delivery  Once loaded onto mode of transport at
the seller’s premises or once seller arrives at the named place
 Transfer of costs  Once loaded onto mode of transport at the seller’s
premises or once seller arrives at the named place
 Export formalities  Seller
 Import formalities  Buyer
3.3.CPT (Carriage Paid To)
 Place of destination
 The seller delivers the goods by handing them over, cleared for export, to
the carrier nominated by him or another person (risks), but must pay the
cost of carriage necessary to bring the goods to the named destination
(costs)