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INTERNATIONAL COMMERCIAL TERMS  ( INCOTERMS )

 

The International Commercial Terms , popularly known as  INCOTERMS provide , interalia, , a set of international rules dealing with the relation between buyers and sellers in foreign trade.

It helps avoiding uncertainties of different countries (buyer / seller) interpretations of terms

INCOTERMS were first published in 1936

Present revised version of INCOTERMS is of 2000 (W.E.F. 1st  January, 2000)

INCOTERMS provide appropriate guidelines in the following broad areas relating to transport under international trade :
 
  • Who is to decide terms of delivery
  • Who is responsible to arrange transportation pay freight
  • Who is responsible to buy insurance
  • When does the Risk of loss / Damage pass from seller to buyer
  • Who is responsible for export / import formalities
  • Other obligations of buyer and seller

In view of changes made to INCOTERMS from time to time , it is necessary to mention in the document the applicable INCOTERMS

Structure of INCOTERMS 2000

GROUP ‘E’ – Departure (At Seller's premises)

EXW - EX WORKS (…Named place)

GROUP ‘F’ - Main Carriage unpaid (By Seller)

FCA - FREE CARRIER (…Named place)
FAS - FREE ALONGSIDE SHIP / Vessel (… Named port of shipment)
FOB - FREE ON BOARD (… Named port of shipment)

GROUP ‘C’ - Main Carriage paid (By Seller)
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)

GROUP ‘D’ - ARRIVAL
(Seller bearing all risks and costs upto destination)

DAF - Delivered at frontier (…Named place)
DES - Delivered Ex ship (… Named port of destination)
DEQ - Delivered Ex quay (… Named port of destination)
DDU - Delivered Duty Unpaid  (… Named place of destination)
DDP - Delivered Duty Paid (…Named place of destination)

 
 

 

 

 
 
 

Transparency in Public procurement
Acceptable Supplier / Offer
Single Tender Enquiry (STE)
Limited Tender Enquiry (LTE)
Open Tender Enquiry (OT)
Global Tender Enquiry (GT)
INCOTERMS
Procedure For Tender Evaluation
Reasonableness of Price
Contract Management