home » Calculations » Delivery basis term. Delivery basis for Incoterms in foreign trade contracts

Delivery basis term. Delivery basis for Incoterms in foreign trade contracts

1. Introduction

2. Definition of the concept "Basic conditions for the supply of goods"

3 . Brief description of sections "Incoterms-2000"

4. Conclusion

5. List of used literature

Introduction.

Foreign economic activity is part of the economic activity of any company that arises with the release of the latter on foreign market and its involvement in international economic relations.

The effectiveness of foreign economic activity depends on the correct drafting of foreign trade contracts, the determination of prices, terms of delivery, calculation of customs duties, knowledge of the basics of international settlements and international transportation.

In various types of international contracts, especially in international sales contracts, a special place belongs to the basic terms of supply.

The basic terms of delivery are called, firstly, because they are the base (basis) that determines the content of the foreign trade price, depending on the distribution of transport costs for the delivery of goods between the Seller and the Buyer (since the Seller's costs are included in the price of the goods), and, secondly , because they regulate a number of the most important, fundamental, basic issues related to the organization of the delivery of goods to their destination.

In connection with its second function, any delivery basis regulates three key "transport" issues, without which the delivery of goods to the destination cannot be carried out. This:

1. The distribution between the Seller and the Buyer of transport costs for the delivery of goods (that is, determining what costs and for how long the Seller bears, and which, starting from what moment, the Buyer).

2. The moment of transition from the Seller to the Buyer:

a) risks of damage, loss or accidental loss of cargo;

b) ownership of the goods.

3. The date of delivery of the goods (that is, the determination of the moment the Seller actually transfers the goods to the disposal of the Buyer or his representative - for example, a transport organization - and, therefore, the fulfillment or non-fulfillment by the first of its obligations in terms of delivery).

All over the world it is customary to determine the basic conditions according to the terms "Incoterms" developed by the International Chamber of Commerce.

The need for such a document was caused by the ambiguous interpretation of trade terms in different countries, which led to disagreements and disputes that had to be resolved through the courts. Therefore, the International Chamber of Commerce, on the basis of a generalization of commercial practice in different countries ah unified these terms and published in 1936 the international rules for the interpretation of trade terms under the name "Incoterms-1936".

This document was amended and supplemented in 1953, 1967, 1976 and 1980. Then a new edition of the Incoterms-1990 document appeared. It is currently valid in the 2000 edition - "Incoterms-2000"

Incoterms (English Incoterms - International Commercial Terms) is:

1) international trade terms;

2) a set of unified international rules for the interpretation of trade terms published by the International Chamber of Commerce (ICC) in Paris. It contains provisions governing such important issues in international trade as the distribution of costs between the parties, determining the moment when the risk of accidental loss or damage to goods passes from the seller to the buyer, assigning the obligation to conclude a contract of carriage and an insurance contract, the procedure for notification and proof of delivery, obtaining licenses, compliance other requirements and formalities.

Definition of the concept "Basic conditions for the supply of goods".

Basic terms of delivery - the terms of contracts for the international sale of goods. Regulate the rights and obligations of the seller and the buyer related to the delivery of goods: packaging, customs clearance, insurance, obtaining export and import permits, paying the costs of loading and unloading, transferring the goods to the buyer. They also contain information about the procedure for processing the relevant documents. The basic terms of delivery serve as the basis for determining the price of the goods and the moment the seller fulfills the obligation to transfer the goods to the buyer and, accordingly, the transfer from the seller to the buyer of the risk of accidental loss or damage to the goods.

In the practice of international trade, the most frequently repeated combinations of obligations of sellers and buyers were determined, which began to be regarded as international trade customs. This made it possible to unify part of the terms of contracts for the international sale of goods related to their delivery. International chamber of commerce Paris publishes collections containing a set of rules for the uniform interpretation of basic conditions (Incoterms), which have a wide practical application.

Brief description of sections "Incoterms-2000".

Incoterms-2000 contains an interpretation of 13 basic terms of delivery, arranged sequentially one after the other according to the principle of increasing costs and responsibility of the Seller for the delivery of goods, that is, from his lowest costs and obligations (term of delivery "ExWorks" - "from the factory") to expenses and obligations of the greatest, maximum (condition "DDR" - "delivery with payment of duties", that is, "delivery is fully paid"). In "Incoterms-2000" the terms of the basic delivery are grouped into four categories. As an indicator of each group, the first letter of the term that denotes this group is used: E; F; C and D.

Group E - departure, i.e. the seller places the goods at the disposal of the buyer at his enterprise;

Group F - the main freight is not paid, i.e. the seller places the goods at the disposal of the first carrier named by the buyer and chartered by him;

Group C - the main freight is paid, i.e. the seller concludes a contract of carriage and places the goods at the disposal of the carrier;

Group D - arrival, i.e. The seller concludes a contract of carriage and places the goods at the disposal of the buyer at the agreed place of destination, with or without payment of duty.

Consider a brief summary of each group.

Group E - departure:

1. From a factory (from a factory, from a mine, from a warehouse) (... at a named place)

EXW - Ex Works (... named place)

Under this basic condition, the seller is under no obligation to transport the goods. The seller fulfills his obligation to deliver when he places the goods at the disposal of the buyer at his premises (eg factory, plant, warehouse, etc.), at the named place and at the time specified in the contract. The seller is not responsible for loading the goods onto a vehicle provided by the buyer and for clearing the goods for export, unless the contract provides otherwise.

The buyer bears all costs and risks arising from the moment the goods are accepted at the named place from the seller's premises within the period stipulated in the contract, provided that the goods are duly individualized, i.e. is the subject of this agreement.

This condition provides for minimum obligations to be fulfilled by the seller. It shall not apply if the buyer is unable to comply directly or indirectly with the export formalities. In such cases, the condition "free with the carrier (... at a named place)" may apply.

Delivery of goods can be carried out using various kinds transport in their combination, and any one type of land transport.

Group F - main carriage not paid:

2. Available from the carrier (... at a named place)

FCA - Free Carrier

The seller under this basic condition fulfills his obligation to deliver the goods when he places the goods cleared for export at the disposal of a carrier named by the buyer at a named place or point. If the exact point is not indicated by the buyer, the seller may choose the place of delivery within the specified territory where the carrier will take the goods into his possession. Usually, according to established practice, a point is chosen that is closest to the main international transport routes. This may be an internal point of the country of departure, a seaport, a carrier's cargo terminal. As documents confirming the transfer of goods to the carrier, the seller, according to this basic condition, must submit a bill of lading, waybill or carrier's receipt.

The buyer must indicate the destination in time and pay the freight charge.

Carrier shall mean any person who, under a contract of carriage concluded with a buyer, performs or ensures the performance of carriage by rail, road, sea, air, inland waterway transport or a combination of these modes of transport.

The carrier assumes responsibility for transportation. He himself concludes a contract of carriage with the owners of vehicles (a contract for road, rail, air, sea or mixed transportation) or the contract is concluded on his behalf. A forwarding company that assumes responsibility for transportation can also be considered a carrier.

If the buyer instructs the seller to deliver the goods to a person or forwarding company other than the carrier, the seller is deemed to have fulfilled his obligation to deliver the goods when they are in the possession of such person or company.

The term "transport terminal" means a railway terminal, a freight railway station, a container terminal or marshalling yard, a small trade terminal or a company.

The term "container" includes any equipment used to form consignments, i.e. all types of containers or platforms, trailers, equipment for horizontal loading by rolling and other devices for all types of transportation.

3. Free along the ship's side (... at the named port of shipment)

FAS - Free Alongside Ship (... named port of shipment)

Under this basic condition, the seller is obliged to deliver the goods at his own expense to the port of loading specified in the contract, at the place indicated by the buyer, within the agreed time and place the goods along the side of the vessel chartered by the buyer.

If, due to its size or deep draft, the ship is unable to load at the berth and the loading takes place in the roadstead, the seller is obliged at his own expense and risk to deliver the goods on lighters (self-propelled barges) or other auxiliary means to the ship's board and notify the buyer about this.

The buyer, under this condition, is obliged to timely charter the ship, inform the seller in advance of its name, time of arrival, loading conditions and bear all costs for the delivery of goods to the ship's board. The risk of accidental loss or damage to the goods passes from the seller to the buyer at the time of the actual delivery of the goods alongside the vessel at the agreed port of loading at the agreed time.

The seller can provide an additional service to the buyer: reserve a place for transportation on a liner vessel. A liner ship serves liner shipping, which is a form of regular shipping that ensures the direction of transportation with stable passenger and cargo flows and provides for the organization of the movement of ships assigned to the line according to a schedule with payment according to the tariff.

The buyer in this case must reimburse the seller for the costs (in particular, for the execution of a bill of lading for the goods accepted for shipment).

The buyer is obliged to clear the goods for export. This condition shall not apply where the buyer is unable to comply directly or indirectly with the export formalities. At the same time, one should not forget that these obligations are assigned to the buyer if the participants in the foreign economic transaction are guided by the basic conditions of Incoterms - 90. In the case of Incoterms - 2000, the seller must clear the goods for export.

The FAS term can only be applied to maritime or inland waterways.

1. In the course of international trade, certain customs have developed, which have become known as the basic terms of delivery (hereinafter - BUP). Their use to a certain extent simplified the exchange of goods, however, due to their different interpretation in individual countries, contradictions arose between counterparties in determining the obligations of the parties.

In order to unify the interpretation of the BUP, the International Chamber of Commerce originally published in 1936 a collection of interpretations of international trade terms "Incoterms" (International Commercial Terms - INCOTERMS). This collection updated periodically. Currently, the 7th edition of the publication - "Incoterms-2000" is in effect.

BUP, along with the terms of payment, are one of the 2 main conditions of a foreign trade contract included in the group of mandatory conditions. BUP determine:

Obligations of the seller-exporter and the buyer-importer
delivery of goods to the agreed destination;

The moment of transition of the risk of death;

The moment of transfer of ownership from the seller to the buyer.
Most often, the PUE is not allocated in a separate section of the contract,
since the reference to the BUP is traditionally contained, at a minimum,
in 2 sections of the foreign trade contract: "Subject of the contract",
"Price and total amount of the contract".

The exception is model contracts, which are widely used in international trade, where the delivery basis is highlighted as a free line on the front side of the standard contract.

The conditions are called "basic", as they are the basis for determining the foreign trade price (depending on the distribution of transport costs for the delivery of goods between the seller and the buyer). Along with this, BUPs stipulate the most important issues related to the organization of the delivery of goods to their destination. Each basis defines 3 main points:

Allocation between seller and buyer of vehicles
expenses, i.e. what expenses and up to what point (geographical point) are borne by the seller-exporter, and which - by the buyer-importer;

The moment of transfer from the seller to the buyer of the risks of damage,
loss or destruction of cargo, as well as ownership of the goods;

The date of delivery of the goods.

2. The "Incoterms-2000" contains an interpretation of 13 BUP, located sequentially one after another according to the principle of increasing costs and responsibility of the seller for the delivery of goods. These 13 conditions, in turn, are grouped into 4 groups: E, F, C, D.

Thus, the price of DCF will be the most expensive, but at the same time the most convenient for the buyer, as it involves the delivery of goods to the destination, provided that all costs and risks are borne by the seller. The easiest for the seller and onerous for the buyer is EXW (buyer pickup from the factory).

In addition, all bases are divided into universal conditions that can be applied to any mode of transportation, including multimodal transportation, and special ones, designed for one mode of transport.

Special bases include all "water" terms - FAS, FOB, CFR, CIF, DES and DEC.

Separately, there is the term DAF, which, although it does not belong to the group of special bases, is used in practice only for deliveries by railway or vehicles.

Taking into account the division of the BUP into universal and special ones, in order to avoid misunderstandings and conflicts, the bases should be applied competently and correctly: water bases should be used only for water transportation, and universal ones - for all others.

Summary basic terms of delivery:

1. EXV - From the factory at the named point(Ex Works... Named
Place - EXW). On this basis, the seller fulfills his obligations
delivery obligation when he hands over the goods at the disposal of
the buyer’s presence at his enterprise (factory, warehouse, plantation).
In this case, the goods must be prepared by the seller for
edits in a transportable state (completely ready for
load). Submits the vehicle for loading and organizes
goods loading buyer. Loading is carried out at the expense of
buyer.

The buyer bears all risks for arranging transportation to the destination. It also includes customs clearance and obtaining an export license.

2. FSA - Available from the carrier at the named place(Free
Carrier... Named Place - FCA). The seller is considered to have fulfilled
we fulfill our obligations to deliver goods that have passed you
transport customs clearance, from the moment of its transfer to the
the carrier's charge at the named place. Most often this
named place is cargo terminal magist
ral transport (railway station, car
station, airport). The seller has a choice:
he can deliver the goods at his enterprise (presumably
press, the enterprise has a railway track) and then
he is responsible for loading the goods onto the transport vehicle
carter; or deliver at your own expense the goods to the terminal magist
ral transport, where the carrier at the expense of the buyer once
loads the goods arrived on the seller's vehicle.
This basis assumes participation in the transportation of any type of trans
ports, including intermodal transport.

FAS - Free along the ship's side at the named port of departure(Free Alongside Ship... Named Port of Shipment - FAS). The seller is deemed to have fulfilled his obligation to deliver when the goods have been placed alongside the ship on the quay at the agreed port of shipment. From this point on, the buyer must bear all the costs and risks of loss of or damage to the goods. It is the seller's responsibility to ensure customs clearance and obtain an export license.

FOB - Free on board ship at named port of shipment(Free on Board... Named Port of Shipment - FOB). The seller is deemed to have fulfilled his delivery obligations from the moment the goods pass the ship's rail at the port of shipment. From this moment (i.e., starting from the stevedoring costs for placing the cargo in the holds of the ship - trimming), the buyer must bear all costs and risks of loss or damage to the goods. Under FOB terms, the seller is responsible for clearing the goods for export.

This basis can be applied only for the carriage of goods by water transport (sea, river).

3. CFR - Cost and freight at a named port of shipment(Cost and Freight... Named Port of Shipment - CFR). Under this delivery basis, the seller must pay the costs and freight necessary to bring the goods to the port of destination. The risk of loss, damage or damage to the goods passes from the seller to the buyer when the goods pass the ship's rail at the port of departure. In accordance with the CFR basis, the seller is obliged to export the goods from duties.

This basis applies only to water transportation (sea, river transport).

CIF - Cost, insurance, freight at a named port of shipment(Cost, Insurance, Freight... Named Port of Shipment - CIF).

The seller has the same obligations as under the CFR basis, but must also provide insurance against risks to the recipient. The seller concludes an insurance contract and sends the policy along with other documents to the recipient.

This basis applies only to water transport.

SPT - Carriage charge paid to the named point(Carriage paid to... Named Place of Destination - CPT). On this basis, the seller pays for the delivery of the goods to the named point in the country of destination. The risk of loss, damage, theft, etc., passes from the seller to the buyer when the goods are placed at the disposal of the first carrier at the point of departure.

This basis is used for transportation by any mode of transport, including mixed messages. The seller's obligations under this basis include the implementation of export customs clearance.

CIP - Carriage and insurance paid to the named point(Carriage and Insurance Paid to... Named Place of Destination - CIP). Under this basis, the seller bears the same obligations as under the CUT basis, but with the addition that the seller must ensure that the goods are insured against risks during transportation. The seller concludes an insurance contract and pays the insurance premium. The seller is obliged to ensure the customs clearance of the goods for export.

This basis is the "terrestrial" ("non-water") equivalent of the CIF basis.

4. DAP - Delivered at the border at the named point(Delivered at Frontier... Named Place - DAF). The seller's obligations are considered fulfilled when the goods are cleared of export customs duties and arrive at the border point of the country of departure, meaning road or rail crossing at the border. The term "border" means any border, including the border of the country of destination. In this regard, it is necessary to specify the border crossing point or place precisely.

This basis is intended for use in transportation by rail or road.

DES - Delivered from a vessel at a named port(Delivered Ex Ship... Named Port of Destination - DES). The seller's obligations are considered fulfilled from the moment the goods are delivered to the buyer at the port of the country of destination. The seller bears all risks for the delivery of the goods to the port of destination. Import customs clearance of goods is carried out by the buyer. This delivery basis can only be used for transportation water transport.

Contract price and what is the delivery basis?

In international trade, when concluding contracts, as a rule, it is clearly indicated who bears certain costs and, accordingly, what the price of the goods will be. In this way, contract price- this is the price fixed in the document of sale (contract). The very distribution of the obligations of the parties for insurance and payment of transportation costs, the determination of the moments of transfer of risks and property rights from the seller to the buyer is called delivery basis.

Basic terms of delivery CIF and FOB: the difference in the obligations of the parties

What is fob delivery terms or cif delivery terms? It would seem that it is clearly written in the contract who is responsible for what and up to what point - and no problems. But no! The main problem is the completely different, sometimes even opposite, interpretation of some trade terms by the legislation of individual countries. Hence - misunderstandings, disagreements, disputes, loss of time and money and litigation. In order to ensure that terms and conditions are interpreted in the same way and problems of unambiguous interpretation arise as rarely as possible, the International Chamber of Commerce (International Chamber of Commerce - The World Business Organization http://www.iccwbo.org) has developed and published uniform standardized rules - Incoterms(international commercial terms), also called basic (basic) terms of delivery- Basis terms of delivery. They allow you to simplify the wording as much as possible when concluding a sales contract, clearly identify the obligations that the parties assume, and greatly facilitate the choice transport conditions.
If you have an expensive cargo or it needs to be delivered to several customs offices, then in Russia the easiest and least expensive option is to hire customs carrier.

Purpose of Incoterms is a clear regulation of the following issues:

Which party is responsible for providing the means of transport for the shipment of the goods.
Which of the parties bears the costs of customs clearance, certification and licensing of imported/exported goods.
The exact place, and sometimes even the position of the goods, where the seller's shipping costs end and the buyer's costs begin.
The point of transition of risks of damage or loss of goods from the seller to the buyer.
The point in time before which the seller must fulfill his obligations and transfer the goods to the buyer (or transport company). In other words, delivery times.

IN new edition Incoterms duties of the parties grouped into 13 sections. Below we will briefly describe each of the sections, but now let's look at these responsibilities using the example of two of the most popular conditions - FOB and CIF.
For us, these conditions are also close in that they relate exclusively to sea freight.

FOB delivery terms

Concluding a contract on terms, the seller is obliged to organize and pay for the delivery of goods to the port shipments and its loading on the selected buyer vessel. At export delivery, he also conducts customs clearance of the goods. The risks associated with damage or loss of goods are transferred to the buyer at the moment when the goods cross the side of the vessel in the port loading .
The terms FOB STOWED (FOB with stowage) and FOB STOWED AND TRIMMED (FOB with stowage and disposal) are used in sales contracts to clarify the seller's obligation to stow and correctly distribute the goods loaded onto the ship in the hold. The second option is used exclusively for bulk cargo. When adding such terms to the sales contract, it is necessary to clarify who bears the costs of these additional responsibilities, and at what point the risk passes to the buyer in order to clearly define the FOB price.

CIF terms of delivery

If you don't go into details - the seller pays for the transport, if - Buyer pays for shipping. The difference between the price and the price is equal to the shipping cost to the port of destination.

Transport conditions and commercial risks

It should be noted that Incoterms regulates the relationship of the parties exclusively within the framework of the sales contract. Therefore, the contract of carriage should be concluded separately, and already in it all the transport conditions. For maritime transport, this section of the contract of sale stipulates:

port of loading and unloading of goods;
point of transfer or transshipment of cargo;
type of charter or bill of lading;
the procedure for informing the parties about the ship's arrival at the port and its readiness for loading and unloading operations;
the procedure for determining lay time;
loading and unloading rates;
conditions and procedure for paying fines (demurrage and dispatch) to the carrier.

Incoterms also does not stipulate who takes over commercial risks for possible maritime surcharges. For example, BAF (fuel surcharge), ERS (contingent transportation costs) or CAF (currency surcharge). Commercial risks also include sudden increases in port or insurance rates, increased wages or carrier rates. Unfortunately, there are many such "pitfalls" hidden in Incoterms.

All these risks can be additionally reinsured. True, in this case, insurance costs will increase.

Distribution of costs and risks between the carrier and the owner of the cargo

One of the biggest risks for contracting parties lies in the choice of delivery terms. Specifically - who, when and how much will pay for transportation.

It should be recalled here that contracts are most often concluded long before shipment. And at the time of shipment, the price of transportation may differ significantly from that specified in the contract. The carrier himself also risks, stipulating the cost of his services long before the start of transportation.

Ideally, the amount of freight due to the carrier should cover all future expenses (fuel, crew salaries, loading and unloading, repair and maintenance of the vessel, port duties) and the risks of the carrier. However, in a competitive environment, the carrier has to specify more than low price. Thus, the amount of freight may not reimburse the shipowner for all costs.

Terms Incoterms (Incoterms) and their features

Incoterms or Incoterms (International commerce terms) - international rules for the unambiguous interpretation of terms in the field foreign trade, first of all, regarding the place of transfer of responsibility from the seller to the buyer (free place). International trade terms are the standard terms of international sales contracts.
The rules were first published in 1936 by the International Chamber of Commerce, the first edition is known as Incoterms 1936. Amendments and additions were later made in 1953, 1967, 1976, 1980, 1990, 2000, 2010.

EXW(from the English EX Works) + the name of the plant / mine / warehouse. The seller provides the buyer with the goods directly on its territory. The seller is not responsible for loading or customs clearance of the goods. Naturally, under such conditions, the price of goods is minimal.
Important! The EXW contract may be supplemented by a separate agreement that imposes on the seller the obligations associated with loading the goods onto a vehicle and sending them to the destination specified by the buyer. If the buyer requires the seller to also carry out export customs clearance of the cargo, it is easier to use the FCA term.

FCA(from English Free Carrier) + name of the place of shipment. The seller is obliged to deliver the goods to the carrier designated by the buyer and arrange customs clearance of the goods. The seller is responsible for the loading and unloading of goods only if this takes place on his territory.
Important! Under this condition, the carrier will be considered not only a full-fledged transport company, but also any forwarder. Those. "carrier" is the one to whom the seller transferred the goods in agreement with the buyer, even if such a "carrier" will not carry out the transportation itself.

FAS(from the English Free Alongside Ship) + the name of the port of shipment. The seller is obliged to deliver the goods to the port of shipment and place them near the side of the ship or port transport barge indicated by the buyer. Customs clearance is also the responsibility of the seller (unless otherwise specified in the contract).
Important! This condition is used only for sea transportation.

FOB(from English Free On Board) + the name of the port of shipment. In addition to delivering the goods to the port and arranging customs clearance, the seller is responsible for loading them onto the ship specified by the buyer.
Important! The key point of this condition ("along the side") fixes the transfer of risks from the seller to the buyer at the moment the cargo crosses the ship's rails. Since this method of loading is completely inapplicable for some types of cargo and ships (for example, for Ro-Ro), in these cases the FAS or FCA condition should be used.

CFR(from English Cost and Freight) + the name of the port of destination. The seller organizes the delivery of the goods to the port of shipment, its customs clearance and loading on the ship specified by the buyer, and also pays for sea freight.
Important! The condition is used only for sea transportation. Although the costs of delivering the goods to the port of destination are borne by the seller, the risks are transferred to the buyer when the goods cross the ship's rail at the port of shipment.

CIF(from English Cost, Insurance and Freight) + the name of the port of destination. In addition to delivering the goods to the ship specified by the buyer and paying for the freight, the seller also bears the costs of customs clearance and insurance of the delivered goods.
Important! CIF terms are used only for maritime transport. The seller insures the goods at the minimum rate (110%). The increase in insurance coverage at the expense of the seller must be specified in the contract separately, or the buyer must pay for it himself.

CPT(from the English Carriage Paid) + the name of the destination. The seller is responsible for delivering the goods to the carrier, clearing the goods through customs and transporting them to the destination specified by the buyer.
Important! The risks of loss or damage to the goods are borne by the buyer at the time of the transfer of the goods by the seller to the carrier. As with the FCA, the “carrier” includes the freight forwarder. If the transportation of goods by several carriers is implied, then the transfer of risks occurs when the goods are transferred to the first of them.

CIP(from the English Carriage and Insurance Paid) + the name of the destination. The seller pays for the delivery of the goods to the carrier specified by the buyer, its customs clearance, insurance and transportation to the destination.
Important! The seller insures the goods at the minimum rate. "Carrier" is considered, among other things, the freight forwarder. If the transportation of goods by several carriers is implied, then the transfer of risks occurs when the goods are transferred to the first of them.

DAT(from English Delivered ad Terminal) + terminal name. It is the responsibility of the seller to deliver the goods to the terminal specified by the buyer in the country of arrival. All costs associated with transportation, export-import clearance of cargo and other customs duties on the goods are also borne by the seller.
Important! This condition also applies to combined transport. The concept of "terminal" includes any terminal (air, auto, railway), as well as a pier, warehouse, etc.

DAP(from English Delivered at Point) + the name of the destination. The seller must deliver ready for unloading with vehicle goods to the destination specified by the buyer.
Important! This condition applies, among other things, to combined transport.

DDP(from the English Delivery Duty Paid) + the name of the destination. The seller is obliged to deliver the cleared goods to the place indicated by the buyer. The seller also bears all costs associated with the payment of duties and other fees in the process of delivering the goods to the buyer.
Important! If VAT at customs (among other fees) is paid by a foreign supplier, the Russian buyer-importer will not be able to deduct this customs VAT.

Freight forwarder or carrier? Three secrets and international cargo transportation

Forwarder or carrier: which one to choose? If the carrier is good and the forwarder is bad, then the first one. If the carrier is bad, and the forwarder is good, then the second one. Such a choice is simple. But how to decide when both applicants are good? How to choose from two seemingly equivalent options? The problem is that these options are not equal.

Scary stories of international transportation

BETWEEN THE HAMMER AND THE ANVIL.

It is not easy to live between a transportation customer and a very cunningly economical cargo owner. One day we received an order. Freight for three kopecks, additional terms on two sheets, the collection is called .... Loading on Wednesday. The car is already in place on Tuesday, and by lunchtime the next day, the warehouse begins to slowly throw into the trailer everything that your forwarder has collected for his customers-recipients.

ENCHANTED PLACE - PTO KOZLOVICHI.

According to legends and experience, everyone who transported goods from Europe by road knows what a terrible place is the PTO Kozlovichi, Brest customs. What chaos the Belarusian customs officers are doing, they find fault in every possible way and tear at exorbitant prices. And it is true. But not all...

HOW UNDER THE NEW YEAR WE CARRIED DRY MILK.

Groupage loading at a consolidation warehouse in Germany. One of the cargoes is powdered milk from Italy, the delivery of which was ordered by the Forwarder .... A classic example of the work of the forwarder-"transmitter" (he does not delve into anything, he only passes along the chain).

Documents for international transport

International road transport of goods is very organized and bureaucratic, a consequence - for the implementation of international road transport loads, a bunch of unified documents are used. It doesn’t matter if it’s a customs carrier or an ordinary one – he won’t go without documents. Although it is not very exciting, we have tried to simply state the purpose of these documents and the meaning that they have. They gave an example of filling in TIR, CMR, T1, EX1, Invoice, Packing List...

Calculation of axle load for trucking

Purpose - to study the possibility of redistributing loads on the axles of the tractor and semi-trailer when changing the location of the cargo in the semi-trailer. And the application of this knowledge in practice.

In the system we are considering, there are 3 objects: a tractor $(T)$, a semi-trailer $(\large ((p.p.)))$ and a cargo $(\large (gr))$. All variables related to each of these objects will be superscripted $T$, $(\large (p.p.))$ and $(\large (gr))$ respectively. For example, the unladen weight of a tractor would be denoted as $m^(T)$.

Why don't you eat mushrooms? Customs exhaled sadness.

What is happening in the international road transport market? The Federal Customs Service of the Russian Federation has already banned the issuance of TIR Carnets without additional guarantees in several federal districts. And she notified that from December 1 of this year she would completely terminate the contract with the IRU as inappropriate Customs Union and makes non-childish financial claims.
IRU responded: “The explanations of the Russian Federal Customs Service regarding the alleged debt of ASMAP in the amount of 20 billion rubles are a complete fabrication, since all the old TIR claims have been fully settled ..... What do we, simple carriers, think?

Stowage Factor Weight and volume of cargo when calculating the cost of transportation

The calculation of the cost of transportation depends on the weight and volume of the cargo. For maritime transport, volume is most often decisive, for air transport it is weight. For road transport of goods, it is important complex indicator. Which parameter for calculations will be chosen in a particular case depends on specific weight of cargo (Stowage Factor) .

A comment:

EXW (abbreviated from English Ex Works letters from the place of work; German - ab Werk). The Russian “self-delivery” is also used.

The seller delivers the goods to the buyer at his plant, factory, mine, warehouse, etc. You go to the store, weigh a kilogram of sausage, pack it for you, pay the bill at the checkout and buy the goods on EXW terms. These are the most simple conditions for the seller and at the same time the most difficult for the buyer, in terms of labor intensity, complexity of the organization. But at the same time, the price of the goods will be the most preferable for the purchase, which means that there is an opportunity for additional earnings.

In general, if the buyer is well acquainted with the characteristics of the product itself, its behavior during transportation, has a reliable "local" forwarder, is confident in the reliability of the seller, it makes sense to save money.

What the buyer needs to consider:

Specify in detail the parameters and characteristics of packages (including marking);

Considering the characteristics of packages and the peculiarities of the transportation of goods, determine the type of vehicle;

Specify the scope of delivery, it is desirable that it be a multiple of the volume of the vehicle that the seller must submit for loading (wagon, motor vehicle, container, etc.)

Clearly agree with the seller on the place of transfer, indicating not only the geographical location (Moscow, for example), but also the exact address;

Clearly agree on the timing of the vehicle for loading:

Coordinate in advance with the seller, whose means will be used for loading. At whose expense it is clear, since in any case the buyer pays. It is also necessary to take into account the fact that even if the loading is carried out by the seller, then if there are no special clauses in the contract, the risk of loss or damage lies with the buyer. Therefore, we necessarily agree with the buyer and make an addition to the contract “with loading at the risk of the seller” or “with loading at the risk of the buyer”;

We determine the list with your reliable and "local" freight forwarder required documents to formalize the export of goods from the country and, depending on the legislation of the country of export, we determine and agree with the forwarder or the seller who draws up what documents;

We determine with the seller the parameters for receiving the goods in qualitative and quantitative terms, including the coordination of acceptance and transfer documents, issue clear instructions to our forwarder if he will accept the goods:

Coordinating insurance terms with insurance companies

Of course, this list is not complete and depends on the specific case, but under these delivery conditions, the buyer's logisticians can prove themselves most significantly and, with a reasonable approach, bring additional profit.

7.1. The concept and purpose of "Incoterms".

When concluding a foreign trade contract, the parties must clearly divide among themselves the numerous responsibilities associated with the delivery of goods from the seller to the buyer.

Incoterms (International Commercial Terms)- Rules for the interpretation of international commercial terms to unify the obligations of the seller and the buyer for the supply of goods and ensure their identical interpretation by counterparties from different countries, developed by the International Chamber of Commerce (ICC), and defining the content of the main, most commonly used, terms of delivery.

The first version of the document was prepared by the ICC in 1936. Last revision completed in 2010 ("Incoterms - 2010"). IN legal relation the document is optional.

Incoterms 2010 (Incoterms 2010) are international rules recognized by governments, law firms and merchants around the world as an interpretation of the most applicable terms in international trade.

Incoterms are based on the principle that the risk of partial or complete loss of cargo passes from the seller to the buyer after the seller has fulfilled his delivery obligations. The provisions of Incoterms in many respects offer only general approach to the distribution of rights and obligations for the supply, therefore, in the contract, if necessary, this distribution is specified. In most cases, the parties seek to agree on a suitable Incoterm baseline. If any provisions of Incoterms do not suit the partners, this is specifically noted in the contract. The delivery terms fixed in the contract have priority.

Basic delivery condition in sales contracts in accordance with Incoterms defines :

Ø distribution of costs between the seller and the buyer (who pays for what and until what time?), respectively, the contract price of the goods will depend on the delivery basis chosen by the parties;

Ø obligations to prepare and transfer documents (who develops them, receives them, at whose expense and in whose name?), (but not the composition of documents!);

Ø the moment of transfer of risk and responsibility for the delivery (who is responsible for what, up to what stage and point in time?).

7.2. Distribution of responsibilities between seller and buyer

Distribution of transportation duties provided for in Incoterms:

A - Responsibilities of the seller (by elements)

1. Provision of goods in accordance with the terms of the contract

2. Registration of licenses, permits and other formalities

3. Conclusion of a contract of carriage and insurance

4. Delivery

5. Transfer of risk

6. Distribution of costs

7. Buyer Notice

9. Inspection, packaging, labeling

10. Other responsibilities

The seller under all basic conditions is obliged to:

Ø deliver the goods in accordance with the terms of the contract to the specified destination;

Ø timely inform the buyer about the readiness of the goods for shipment;

Ø pay the costs associated with checking the goods;

Ø provide at your own expense the usual packaging of the goods;

Ø Obtain, at your own expense, an export license or other export permit;

Ø pay the customs duties levied on export.

B - Obligations of the buyer (by elements)

1. Payment of the price for the goods

2. Registration of licenses, permits and other formalities

3. Conclusion of a contract of carriage

4. Acceptance of delivery

5. Transfer of risk

6. Distribution of costs

7. Notice to seller

8. Provision of proof of delivery

9. Product inspection

10. Other duties

The buyer under all basic conditions is obliged to:

Accept the goods at the place and time specified in the contract and pay its cost;

Bear all costs and risks from the date of expiry of the delivery period due to late acceptance of the goods;

Pay all costs for imported goods, unless otherwise specified in the conditions;

Obtain a license at your own expense.

7.3. Components of transport costs

When fixing the price of the goods in the contract, it is of great importance to determine its delivery basis . The price basis determines whether transport, insurance, storage and other costs for the delivery of the goods are included in the price of the goods.

Basic terms of delivery – special conditions, defining the obligations of the seller and the buyer for the delivery of goods, which establish the moment of transfer of the risk of accidental loss or damage to the goods from the seller to the buyer. Thus, the basic conditions determine who bears the costs associated with the transportation of goods from the exporting seller to the importing buyer. These costs are very diverse and sometimes amount to 40-50% of the price of the goods. They may include:

ü expenses for preparing goods for shipment (checking quality and quantity, sampling, packaging);

ü payment for the loading of goods on the means of transportation of the domestic carrier (water, rail, road, air transport);

ü payment for the transportation of goods from the point of departure to the main means of transportation;

ü payment of expenses for loading goods on the main means of transportation at the point of export;

ü payment of the cost of transportation of goods by international transport;

ü payment for cargo insurance in transit;

ü expenses for storage of goods in transit, reloading, and repacking;

ü the cost of unloading the goods at the destination;

ü expenses for the delivery of goods from the destination to the buyer's warehouse;

ü payment customs duties, taxes and fees when crossing the customs border.

Those costs for the delivery of the goods, which are borne by the seller, are included in the price of the goods. The listed conditions are called basic because they establish the basis - the basis of the price of a foreign trade transaction and affect the level of the price of goods transported across the border of counterparty countries.

7.4. Classification of basic terms of supply.

In the modern version of INCOTERMS, 11 terms are presented, which are combined into 4 groups.

1 group E– Ex works... (name of point), there is no obligation to conclude a contract of carriage, the risk lies with the buyer, the seller provides the goods to the buyer directly at his premises.

EXW: (importer)- ex-factory.

Franco (Italian)– the buyer is free from all risks and costs for the delivery of goods to the point indicated by the word free.

2 group F– the seller undertakes to place the goods at the disposal of the carrier, which is provided by the buyer (the main carriage is not paid).

FCA– free carrier (railway transport, road transport, air transport);

FAS– free along the side of the ship (the seller is obliged to deliver the goods to the specified port along the side of the ship);

FOB- Free on board.

3 group C– the seller undertakes to conclude a contract of carriage, but without assuming the risk of accidental loss or damage to the goods after loading (the seller pays the main carriage).

CFR– cost and freight;

CIF– cost, insurance and freight;

CPT– transportation is paid until … (destination);

CIP– carriage and insurance paid up to … .

4 group D– the seller bears all costs and assumes all risks until the goods are delivered to the country of destination (arrival group).

DAT– Delivery at the terminal (terminal name);

DAP– Delivery at the place of destination (name of place);

DDP- delivery with payment of duty.

Category E Shipping	EXW	any kind of transport	EX Works (... named place)
Category F Main carriage not paid by the seller	FCA		Free Carrier (...named place)
FAS	maritime and inland waterway transportation	Free Alongside Ship (... named port of shipment)
FOB	maritime and inland waterway transportation	Free On Board (... named port of shipment)
Category C Main carriage paid by the seller	CFR	any kind of transport	Cost and Freight (... named port of destination)
CIF	any kind of transport	Cost, Insurance and Freight (... named port of destination)
CIP	any kind of transport	Carriage and Insurance Paid To (... named place of destination)
CPT	any kind of transport	Carriage Paid To (... named place of destination)
Category D Shipping	DAT	any kind of transport	new!!! Delivered At Terminal (... named terminal of destination)
DAP	any kind of transport	new!!! Delivered At Piont (... named point of destination)
DDP all modes of transport Delivered Duty Paid (... named place of destination) Delivered Duty Paid (... named place of destination)

Category E - Shipment EXW (EX Works (... named place)) Ex Works (... named place) enterprise or other named place (for example: in a plant, factory, warehouse, etc.). The seller is not responsible for loading the goods onto the vehicle, as well as for customs clearance of the goods for export.

1. ShipmentFCA (Free Carrier (...named place)) The term "Free Carrier" means that the seller delivers the cleared goods to the carrier named by the buyer at the named place. It should be noted that the choice of place of delivery will affect the obligation to load and unload the goods at that place. If delivery takes place at the seller's premises, the seller is responsible for shipping. If the delivery is made to another place, the seller is not responsible for the shipment of the goods. This term can be used for transportation by any mode of transport, including multimodal transportation.

2. FAS (Free Alongside Ship (... named port of shipment)) The term "Free Alongside Ship" means that the seller has made delivery when the goods are placed alongside the ship on the quay or in lighters at the named port of shipment. This means that from now on, all costs and risks of loss or damage to the goods must be borne by the buyer. Under the terms of the term FAS the seller is responsible for clearing the goods for export. THIS EDITION DIFFERS IN THIS EDITION FROM PREVIOUS EDITIONS OF INCOTERMS IN WHICH THE RESPONSIBILITY FOR CUSTOMS CLEARANCE FOR EXPORT IS RESPONSIBLE TO THE BUYER. This term can only be used when goods are transported by sea or inland waterways.

3. FOB (Free On Board (... named port of shipment)) The term "free on board" means that the seller has delivered when the goods have passed the ship's rail at the named port of shipment. This means that from now on, all costs and risks of loss or damage to the goods must be borne by the buyer. Under the terms of the term FOB the seller is responsible for clearing the goods for export. This term can only be used when goods are transported by sea or inland waterways. If the parties do not intend to deliver the goods across the ship's rail, the FCA term should be used.

1. CFR (Cost and Freight (... named port of destination)) Cost and Freight (... named port of destination) The term "Cost and Freight" means that the seller has made delivery when the goods have passed the ship's rail at the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination, HOWEVER, the risk of loss of or damage to the goods, and any additional costs arising after the shipment of the goods are transferred from the seller to the buyer. Under the terms of the term CFR the seller is responsible for clearing the goods for export. This term can only be used when goods are transported by sea or inland waterways. If the parties do not intend to deliver the goods across the ship's rail, the term CPT should be used.

2. CIF (Cost, Insurance and Freight (... named port of destination)) Cost, insurance and freight (... named port of destination) The term "Cost, Insurance and Freight" means that the seller has delivered when the goods have passed the ship's rail at the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination, BUT the risk of loss or damage to the goods, as well as any additional costs incurred after the goods have been shipped, is transferred from the seller to the buyer. However, under the terms CIF the seller is also obliged to purchase marine insurance in favor of the buyer against the risk of loss and damage to the goods during transport. Therefore, the seller is obliged to conclude an insurance contract and pay insurance premiums. The buyer should take into account that according to the terms of the term CIF, the seller is required to provide insurance with only minimal coverage. Under the terms of the term CIF the seller is responsible for clearing the goods for export. This term can only be used when goods are transported by sea or inland waterways. If the parties do not intend to deliver the goods across the ship's rail, the term CIP should be used.

3. CIP (Carriage and Insurance Paid To (... named place of destination)) Freight/Carriage and Insurance Paid to (... named place of destination) The term "Freight/Carriage and Insurance Paid to" means that the seller will deliver the goods named carrier. In addition, the seller must pay the costs associated with the carriage of the goods to the named destination. This means that the buyer assumes all risks and any additional costs after the delivery of the goods in this way. However, under the terms CIP the seller is also obliged to provide insurance against the risks of loss and damage to the goods during transport in favor of the buyer. Consequently, the seller concludes an insurance contract and pays insurance premiums. The buyer should take into account that according to the terms of the term CIP the seller is required to provide minimum coverage insurance. In the event that the buyer wishes to have insurance with greater coverage, he must either specifically agree on this with the seller, or take steps to conclude additional insurance himself. The word "carrier" means any person who, on the basis of a contract of carriage, undertakes to provide for himself or organize the transport of goods by rail, road, air, sea and inland water transport or a combination of these modes of transport. In the case of carriage to the destination by several carriers, the transfer of risk will occur when the goods are placed in the care of the first carrier. Under the terms of the term CIP the seller is responsible for clearing the goods for export. This term can be used when transporting goods by any mode of transport, including multimodal transport.

4. CPT (Carriage Paid To (... named place of destination))
Freight/carriage paid to (... named place of destination) The term "Freight/Carriage Paid To" means that the seller will deliver the goods to the carrier named by him. In addition, the seller must pay the costs associated with the carriage of the goods to the named destination. This means that the buyer assumes all risks of loss or damage to the goods, as well as other costs after the goods are handed over to the carrier. The word "carrier" means any person who, on the basis of a contract of carriage, undertakes to provide for himself or organize the transport of goods by rail, road, air, sea and inland water transport or a combination of these modes of transport. In the case of carriage to an agreed destination by several carriers, the transfer of risk will occur when the goods are placed in the care of the first of them. Under the terms of the term SRT the seller is responsible for clearing the goods for export.
This term can be used when transporting goods by any mode of transport, including multimodal transport.

1. DAT (Delivered At Terminal (... named terminal of destination))
Delivery at the terminal (...terminal name) The term "Delivered at Terminal" (named place of destination) means that the seller is deemed to have fulfilled his obligations when the goods released under the customs regime of export are delivered by him to the agreed terminal of the named place of destination. The term "terminal" in the DAT delivery basis means any place, incl. air / auto / railway cargo terminal, pier, warehouse, etc. The Incoterms DAT delivery basis obliges the seller to bear all costs and risks associated with transporting the goods and unloading them at the terminal, including (where required) any fees for export from the country of destination. The word "fees" here means the responsibility and risks for carrying out customs clearance, as well as for paying customs formalities, customs duties, taxes and other fees. The term DAT can be used for the carriage of goods by any mode of transport, including multimodal transport.

2. DAP (Delivered At Piont (... named point of destination))
Delivery at location (... name of location) The term "Delivered at Place" (named place of destination) means that the seller has fulfilled his obligation to deliver when he has provided the buyer with the goods ready to be unloaded from the means of transport arriving at the agreed destination. The delivery basis of Incoterms DAP imposes on the seller the obligation to export customs clearance of the goods. The term DAP can be used for the carriage of goods by any mode of transport, including multimodal transport.

Two new Incoterms - DAT (Delivered at Terminal) and DAP (Delivered at Destination) - have replaced the following Incoterms 2000 terms: DAF (Delivered at Frontier), DES (Delivered from Ship), DEQ (Delivered from Quay) and DDU (Delivered without paying fees)

The number of Incoterms has been reduced from 13 to 11. This was made possible by the inclusion of two new terms that can be used regardless of the agreed mode of transport, namely: DAT (Delivered at Terminal) and DAP (Delivered at Destination) instead of Incoterms 2000 : DAF (Delivered at Frontier), DES (Delivered Ex Ship), DEQ (Delivered Ex quay) and DDU (Delivered Duty Free).

Under these two new terms, the delivery takes place at the agreed place of destination: under the term DAT (Delivered at the Terminal) by placing the goods at the disposal of the buyer unloaded from the arriving vehicle (as was previously the case under the term DEQ (Delivered from Quay); under the term DAP (Delivered at the place of destination) also by placing the goods at the buyer's disposal, but ready for unloading (as was previously the case under the terms DAF (Delivered at Frontier), DES (Delivered from Ship) and DDU (Delivered Duty Free).

These new rules made Incoterms 2000 DES (Delivered from Ship) and DEQ (Delivered from Quay) redundant. The reference to the terminal in the term DAT (Delivered at Terminal) may be in a port, and therefore the term DAT can be safely used where the term Incoterms 2000 DEQ (Delivered from Quay) has been used.

Likewise, the arrived "vehicle" in DAP (Delivered at Destination) could be the vessel and the agreed destination the port of destination: therefore DAP (Delivered at Destination) could safely be used where Incoterms were applied. 2000 DES (Delivery Ex Ship). These new rules, like their predecessors, are "delivered terms", i.e. the seller bears all costs (other than the costs of customs clearance for import, if applicable) and risks associated with the delivery of the goods to the agreed destination.

3. DDP (Delivered Duty Paid (... named place of destination))
Delivered Duty Paid (...named place of destination) The term "Delivered Duty Paid" means that the seller delivers the goods, cleared for customs and not unloaded from the arriving means of transport, at the disposal of the buyer at the named place of destination. The seller must bear all costs and risks associated with the transportation of the goods, including (where required). Any fees for importation into the country of destination (the word "fees" here means the responsibility and risks for carrying out customs clearance, as well as for paying customs formalities, customs duties, taxes and other fees). While the EXW term imposes minimal obligations on the seller, the term DDP involves the maximum obligations of the seller. This term cannot be applied if the seller cannot, directly or indirectly, obtain an import license. If the parties wish the buyer to assume all risks and costs of importing the goods, the term DDU should be used. This term can be used regardless of the mode of transport, but when the delivery is made on board a ship or at a quay in the port of destination, the terms DES or DEQ should be used.