International Marketing (EP&D)

Class # 3

08-02-2014 (8:30 to 10:30)

INCO TERMS International Commercial Terms (2010) ICC (International Chamber of Commerce) has given rules for the interpretation of INCO terms. INCO terms were first published by ICC in 1936. Since then ICCs expert lawyers and trade practitioners have updated them six times to keep pace with development of international trade. INCO terms are available from ICC publishing and ICC National Committee throughout the world. INCO terms are developed, maintained and promoted by ICC Commercial Law and Practice. English text is the original and official version of INCO terms 2010. Authorised translation into 31 languages are available from ICC National Committee. Why INCO terms? 1. INCO terms are international rules that are accepted by Governments, legal authorities and practitioners worldwide for interpretation of the most commonly used terms in international trade. 2. They either reduce or remove altogether uncertainties arising from different interpretation from such terms in different countries. 3. INCO terms make international trade easier and help traders in different countries to understand each other. This standard trade definition that are most commonly used in international trade contracts are protected by ICC. 4. The scope of INCO terms is limited to matter related to the rights and obligation of the parties to the contract of sale with respect to the delivery of goods sold but excluding intangibles like computer software. Four Groups of INCO Terms

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Piyush Ajmera

International Marketing (EP&D)

Class # 3

08-02-2014 (8:30 to 10:30)

Group E F F F C C C C D D D D D Ex Works: (Name Place)

Terms EXW FCA FAS FOB CFR CIF CPT CIP DAF DES DEQ DOU DDP

Stands For Ex Works Free Carrying Free Alongside Ship Free on Board Cost and Freight Cost Insurance Freight Cartage Paid to Cartage & Insurance Paid to Delivered at Frontier Delivered Ex Ship Delivered at Quay (Port) Delivered Duty Unpaid Delivered Duty Paid

Ex Works means the seller only responsibility is to make the goods available at the sellers premises i.e. factory, shop or his warehouse. The seller is not responsible for loading the goods on the vehicle provided by the buyer unless otherwise agreed to. The buyer bears the full cost and risk involved in collecting the goods from there to the desired destination. It must be remembered that Ex Works represents the minimum obligation of the seller.

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Piyush Ajmera