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CONTENTS
INCOTERMS® 2010 3
Mode of transport an appropriate
INCOTERMS® 2010 clauses 4
EXW-clauses 5
FCA-clauses 6
CPT-clauses 7
CIP-clauses 8
DAT-clauses 9
DAP-clauses 10
DDP-clauses 11
FAS-clauses 12
FOB-clauses 13
CFR-clauses 14
CIF-clauses 15
Th ey have been introduced by the international chamber of
commerce and rule the rights and duties of buyers and sellers
in international trade.
Th e INCOTERMS® can be purchased from the international
chamber of commerce Zurich (Publication 715ED) or in any
bookshop (ISBN 978-3-929621-71-6).
Th e INCOTERMS® are international rules for the interpreta-
tion of specifi c parts of contracts which are used in commer-
cial contracts.
Th ese clauses rule in particular:
→ the delivery and acceptance of goods,
→ the allocation of costs,
→ the transfer of risks,
→ the delivery of the documents or the equivalent electronic
messages.
Th ey do however not rule amongst others:
→ the change of ownership,
→ the payment details,
→ the applicable law,
→ the jurisdiction.
In your commercial contracts agree the INCOTERMS® 2010
and clearly state this, e.g. «CIF INCOTERMS® 2010». Following
this you are sure to have clear conditions. If certain countries
ask for a marine cargo insurance to be placed abroad due to
legal reasons, there is the possibility to protect the substantial
fi nancial risk by a subsidiary insurance. Th e subsidiary insur-
ance has nothing to do with an export risk guarantee but is
solely to ensure full insurance coverage over a marine insur-
ance placed abroad.
The INCOTERMS® are divided into four groups:
E-clauses
EXW Ex Works (… named place of delivery)
F-clauses
FCA Free Carrier (… named place of delivery)
FAS Free Alongside Ship (… named port of shipment)
FOB Free On Board (… named port of shipment)
C-clauses
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)
D-clauses
DAT Delivered at Terminal (… unloaded at the named terminal at
port or place of destination)
DAP Delivered at Place
(… ready for unloading named place of destination)
DDP Delivered Duty Paid
(… ready for unloading named place of destination)
Each clause rules the duties of the seller respectively the buyer.
In relation to the marine cargo insurance especially the fact
who is carrying the risk and from where to where.
As certain clauses are restricted the Marine Cargo Insurer rec-
ommends the following clauses:
→ Seller: Conduct transportation based e.g. on CIF- or CIP-
clauses.
→ Buyer: Conduct transportation based e.g. on CFR- or CPT-
clauses.
INCOTERMS® 2010International Commercial Terms
INCOTERMS® 2010
International Commercial Terms 3
Mode of transportation and appropriate
INCOTERMS®-clauses 2010
INCOTERMS® 2010
Mode of transportation and appropriate INCOTERMS®-clauses 2010
Which advantages result from this recommendation for
the Swiss seller or buyer?
→ Your Swiss Insurer is a reliable partner on whom you can
count in any case.
→ You define the adequate insurance coverage for your goods.
→ The insurance is valid from the point of departure until
final destination.
→ Always conclude the insurance on «Place/Place» basis.
→ You can settle a potential claim in Switzerland.
→ You reduce your financial risk to a minimum, as you have
in case of claim neither problems with money transfers (due
to foreign exchange restrictions) nor do you carry the risk of
currency exchange differences.
For all modes of transportation including multimodal
transports
EXW Ex Works (… named place)
FCA Free Carrier (… named place)
CPT Carriage Paid To (… named place of destination)
CIP Carriage and Insurance Paid (to)
(… named place of destination)
DAT Delivered at Terminal (… unloaded at the named terminal
at port or place of destination)
DAP Delivered at Place
(… ready for unloading named place of destination)
DDP Delivered Duty Paid
(… ready for unloading named place of destination)
Only for transportation by ocean-going vessels and
inland water vessels
FAS Free Alongside Ship (… named port of shipment)
FOB Free on Board (… named port of shipment)
CFR Cost and Freight (… named port of destination)
CIF Cost, Insurance and Freight (… named port of destination)
4
Seller
As seller in an «EXW-sale» you have to
→ make the goods available at the named place of delivery
(factory site, plant, warehouse etc).
What do you need to pay special attention to?
→ Even after you have handed over the goods you still carry a
substantial financial risk as long as the goods are not paid in
their entirety and the buyer did not purchase marine cargo
insurance.
Buyer
As buyer in an «EXW-purchase» you have to
→ take over the goods as soon as they are made available from
the seller at the named place of delivery,
→ organise at your own cost and risk the transportation from
this point onwards.
What do you need to pay special attention to?
→ The risk of loss and damage to the goods are transferred to
you as soon as the goods are made available at the seller.
→ The seller is not obliged to conduct marine cargo insurance
after the risk transfer to the buyer.
→ For the buyer this condition is unfavourable. He takes over
a maximum of responsibility and has to make all arrange-
ments related to export procedures, transportation, insur-
ance etc. himself.
Seller’s risk Buyer’s risk
The EXW-clauseEx Works (… named place)= «ex works»
INCOTERMS® 2010
The EXW-clause5
INCOTERMS® 2010
The FCA-clause
Seller
As seller in a «FCA-sale» you have to
→ make the goods available at the named place of delivery,
→ carry out all customs clearance procedures and to obtain
the permits necessary for export at your own risk and costs.
What do you need to pay special attention to?
→ Even after you have handed over the goods you still carry a
substantial financial risk as long as the goods are not paid in
their entirety and the buyer did not purchase marine cargo
insurance.
Buyer
As buyer in a «FCA-purchase» you have to
→ take over the goods as soon as they are made available from
the seller at the named place of delivery,
→ organise at your own cost and risk the transportation from
this point onwards.
What do you need to pay special attention to?
→ The risk of loss and damage to the goods are transferred to
you as soon as the goods are delivered to the named place.
→ A damage not ascertained before the taking over of the
goods by the freight haulier can subsequently not be claimed
from the seller.
→ The seller is not obliged to conduct marine cargo insurance
after the risk transfer to the buyer.
Seller’s risk Buyer’s risk
The FCA-clauseFCA Free Carrier (… named place)= «free carrier»
6
Seller
As seller in a «CPT-sale» you have to
→ hand over the goods to the freight haulier at the named
place of destination,
→ carry all risks until the goods are handed over to the first
freight haulier.
What do you need to pay special attention to?
→ Even after you have handed over the goods you still carry a
substantial financial risk as long as the goods are not paid in
their entirety and the buyer did not purchase marine cargo
insurance.
Buyer
As buyer in a «CPT-purchase» you have to
→ carry the risk as soon as the goods are handed over to the
first freight haulier.
What do you need to pay special attention to?
→ A damage not ascertained before the taking over of the
goods by the freight haulier can subsequently not be claimed
from the seller.
→ The seller is not obliged to conduct marine cargo insurance
after the risk transfer to the buyer.
The CPT-clauseCPT Carriage Paid To (… named place of destination) = «carriage paid to»
INCOTERMS® 2010
The CPT-clause
Seller’s risk Buyer’s risk
7
INCOTERMS® 2010
The CIP-clause
Seller
As seller in a «CIP-sale» you have to
→ conduct the freight contract and pay the freight and costs
until the named place of destination,
→ carry all risks until the goods are handed over to the fi rst
freight haulier,
→ conduct a negotiable marine cargo insurance with coverage
adequate to the nature of the goods and the commercial
practice.
Buyer
As buyer in a «CIP-purchase» you have to
→ take over the goods at the named place of destination from
the freight haulier.
What do you need to pay special attention to?
→ The goods travel at your own risk. The seller is however
obliged to conduct insurance for the whole journey.
→ You have the possibility to agree with the seller on the scope
of the insurance coverage. If no such agreement has been
made, the seller is only obliged to conduct a «market prac-
tice» coverage (selling price plus 10 %). You do neither know
who the Insurer is nor the exact scope of coverage.
The CIP-clauseCIP Carriage and Insurance Paid (to) (… named place of destination)= «carriage and insurance paid to»
Seller’s risks Buyer’s risk
8
Seller
As seller in a «DAT-sale» you have to
→ deliver the goods to the named port of destination or named
place and unload them at your own risk and costs,
→ carry our all customs clearance procedures and to obtain
the permits necessary for export at your own risk and costs.
What do you need to pay special attention to?
→ Even after you have handed over the goods you still carry a
substantial financial risk as long as the goods are not paid in
their entirety and the buyer did not purchase marine cargo
insurance.
Buyer
As buyer in a «DAT-purchase» you have to
→ take over the goods as soon as they are made available at the
named terminal in the named port of destination or named
place,
→ organise at your own cost and risk the transportation from
this point onwards.
What do you need to pay special attention to?
→ The risk of loss and damage to the goods are transferred to
you as soon as the goods are delivered to the named termi-
nal at the named port of destination or named place.
→ A damage not ascertained before the taking over of the
goods by the freight haulier can subsequently not be claimed
from the seller.
→ The seller is not obliged to conduct a marine cargo insur-
ance after the risk transfer to the buyer.
Seller’s risk Buyer’s risk
The DAT-clauseDAT Delivered at Terminal (… unloaded at the named terminal at port or place of destination)= «delivered at terminal»
INCOTERMS® 2010
The DAT-clause
Terminal
9
INCOTERMS® 2010
The DAP-clause
Risk according to individual agreement between buyer and seller
Seller
As seller in a «DAP-sale» you have to
→ deliver the goods to the named place of destination at your
own risk and costs,
→ carry out all customs clearance procedures and to obtain
the permits necessary for export at your own risk and costs.
What do you need to pay special attention to?
→ Even after you have handed over the goods you still carry a
substantial financial risk as long as the goods are not paid in
their entirety and the buyer did not purchase marine cargo
insurance.
Buyer
As buyer in a «DAP-purchase» you have to
→ take over the goods as soon as they are made available by the
seller at the named place of destination loaded on the means
of transportation making the delivery,
→ organise at your own cost and risk the transportation from
this point onwards.
What do you need to pay special attention to?
→ A damage occurred before the named place of destination
which is ascertained only at the final destination can subse-
quently not be claimed from the seller.
→ The seller is not obliged to conduct a marine cargo insur-
ance after the risk transfer to the buyer.
The DAP-clauseDAP Delivered at Place (… ready for unloading named place of destination)= «delivered at place»
10
ZOLL
DOUANE
Seller
As seller in a «DDP-sale» you have to
→ make the goods available at the named place of destination,
→ carry all costs and risks until the named place of destination
including duties, taxes and other levies.
What do you need to pay special attention to?
→ Even after you have handed over the goods you still carry a
substantial financial risk as long as the goods are not paid in
their entirety and the buyer did not purchase marine cargo
insurance.
→ You are responsible for the customs procedure in the coun-
try of destination which might cause you unsolvable prob-
lems (e.g. missing import license which the buyer has to
provide).
Buyer
As buyer in a «DDP-purchase» you have to
→ take over the goods as soon as they are made available by the
seller at the named place of destination loaded on the means
of transportation making the delivery and from this point
onwards carry all costs and risks until delivery to your
domicile.
What do you need to pay special attention to?
→ A damage occurred before the named place of destination
which is ascertained only at the final destination can subse-
quently not be claimed from the seller.
→ The seller is not obliged to conduct a marine cargo insur-
ance after the risk transfer to the buyer.
Seller’s risk Buyer’s risk
The DDP-clauseDDP Delivered Duty Paid (… ready for unloading named place of destination)= «delivered duty paid»
INCOTERMS® 2010
The DDP-clause
depending
on named
place of
destination
11
INCOTERMS® 2010
The FAS-clause
Seller’s risk Buyer’s risk
Seller
As seller in an «FAS-sale» you have to
→ deliver the goods on your own risk and costs to the named
place alongside the ship indicated by the seller at the named
port of loading,
→ carry our all customs clearance procedures and to obtain
the permits necessary for export at your own risk and costs.
What do you need to pay special attention to?
→ Even after you have handed over the goods you still carry a
substantial financial risk as long as the goods are not paid in
their entirety and the buyer did not purchase marine cargo
insurance.
Buyer
As buyer in an «FAS-purchase» you have to
→ take over the goods as soon as they are made available by
the seller at the named place at the port of loading,
→ organise at your own cost and risk the transportation from
this point onwards.
What do you need to pay special attention to?
→ The risk of loss and damage to the goods are transferred to
you as soon as the goods are delivered to the named place at
the port of loading.
→ A damage not ascertained before the taking over of the
goods by the freight haulier can subsequently not be
claimed from the seller.
→ The seller is not obliged to conduct marine cargo insurance
after the risk transfer to the buyer.
The FAS-clauseFAS Free Alongside Ship (… named port of shipment)= «free alongside ship»
12
Seller
As seller in an «FOB-sale» you have to
→ deliver the goods on board of the vessel,
→ carry all costs and risks until the delivery of the goods on
board of the vessel.
What do you need to pay special attention to?
→ Even after you have handed over the goods you still carry a
substantial financial risk as long as the goods are not paid in
their entirety and the buyer did not purchase marine cargo
insurance.
Buyer
As buyer in an «FOB-purchase» you have to
→ organise the necessary shipping space,
→ carry all costs and risks as soon as the goods are delivered
on board of the vessel.
What do you need to pay special attention to?
→ A damage not ascertained before the taking over of the
goods by the freight haulier can subsequently not be claimed
from the seller.
→ The seller is not obliged to conduct a marine cargo insur-
ance after the risk transfer to the buyer.
The FOB-clauseFOB Free on Board (… named port of shipment)= «free on board»
Seller’s risk Buyer’s risk
INCOTERMS® 2010
The FOB-clause13
INCOTERMS® 2010
The CFR-clause
Seller’s risk Buyer’s risk
Seller
As seller in a «CFR-sale» you have to
→ deliver the goods on board of the vessel,
→ conclude the freight contract and to pay the freight and
costs up to the named port of destination,
→ carry all costs and risks until the delivery of the goods
on board of the vessel at the named port of loading.
What do you need to pay special attention to?
→ Even after you have handed over the goods you still carry a
substantial financial risk as long as the goods are not paid in
their entirety and the buyer did not purchase marine cargo
insurance.
Buyer
As buyer in a «CFR-purchase» you have to
→ take over the good at the port of destination after receipt of
the documents,
→ carry all costs and risks as soon as the goods are delivered
on board of the vessel.
What do you need to pay special attention to?
→ The seller carries the risk only up to the port of loading. He
does not conclude an insurance for the journey.
→ A damage not ascertained before the taking over of the
goods by the freight haulier can subsequently not be claimed
from the seller.
The CFR-clauseCFR Cost and Freight (… named port of destination)= «cost and freight»
14
Seller’s risk Buyer’s risk
Seller
As seller in a «CIF-sale» you have to
→ deliver the goods on board of the vessel,
→ conclude the freight contract and to pay the freight and
costs up to the named port of destination,
→ carry all costs and risks until the delivery of the goods on
board of the vessel,
→ conduct a negotiable marine cargo insurance.
Buyer
As buyer in a «CIF-purchase» you have to
→ take over the good at the port of destination after receipt of
the documents,
→ carry all costs and risks as soon as the goods are delivered
on board of the vessel.
What do you need to pay special attention to?
→ The goods travel at your risk. The seller is however obliged
to conduct an insurance for the whole journey.
→ You have the possibility to agree with the seller on the scope
of the insurance coverage. If no such agreement has been
made, the seller is only obliged to conduct a «market prac-
tice» coverage (selling price plus 10 %). You do neither know
who the Insurer is nor the exact scope of coverage.
The CIF-clauseCIF Cost, Insurance and Freight (… named port of destination)= «cost, insurance and freight»
INCOTERMS® 2010
The CIF-clause15