1. Incoterms 2011 Dr. Katalin Csekő

2. Incoterms 2000 → Incoterms 2010 Usage → UK origin form XIX. century; Usage → UK origin form XIX. century; Written form of common practice set up by ICC; Written form of common practice set up by ICC; International Commercial Terms regularly revised by the ICC Paris, adopted to the changes of the world trade ; International Commercial Terms regularly revised by the ICC Paris, adopted to the changes of the world trade ; The Rules regulates the geographical point/place where: The Rules regulates the geographical point/place where: the transport-related risks pass from the seller to the buyer; the transport-related risks pass from the seller to the buyer; the freight, the transport-related costs and tasks will be shared between the seller and the buyer; the freight, the transport-related costs and tasks will be shared between the seller and the buyer; The Rules specifies additional conditions of the contract of sales: The Rules specifies additional conditions of the contract of sales: The delivery place= where the seller performs=where and when the goods must be of the agreed quantity and quality; The delivery place= where the seller performs=where and when the goods must be of the agreed quantity and quality; Administrative/clerical works; Administrative/clerical works;

3. Scope of Incoterms Limited to the contract of sale and of the delivery of tangible goods; Limited to the contract of sale and of the delivery of tangible goods; Subject to the applicable national law; Subject to the applicable national law; In harmony with CISG; In harmony with CISG; Completed and modified by the usage of the port; of the concerned industry branch; of the relevant conventions of transportation; Completed and modified by the usage of the port; of the concerned industry branch; of the relevant conventions of transportation; Do not deal with: Do not deal with: the transfer of the property in goods; the transfer of the property in goods; the consequences of the breach of the contract; the consequences of the breach of the contract; It should be considered as a model-contract; It should be considered as a model-contract; It recognize the „string-trade”; It recognize the „string-trade”;

4. The application of Incoterms How to use? What is the legal effect? How to use? What is the legal effect? Incoterms as a set of rules →soft law→ not Incoterms as a set of rules →soft law→ not obligatory to apply; obligatory to apply; It becomes binding if: it is incorporated in contract; it is incorporated in contract; the parties are referencing to it by their course of performance; the parties are referencing to it by their course of performance; It can be amended or completed with parties’ mutual agreement; It can be amended or completed with parties’ mutual agreement; Special classification: One-point clause; One-point clause; Two-points clause; Two-points clause;

5. The structure of the Incoterms 2000 & 2010 Incoterms 2000 → 13 delivery terms=clauses; in 4 basically different categories E, F, C D E-, F-, C-terms are shipment contracts D-terms are for arrival contracts; Incoterms 2010 → 11 delivery terms=clauses; Two categories: Omni-modal (or multimodal): Ex Works, FCA, CPT, CIP, DAP,DAT, DDP; Sea and inland water clauses: FAS, FOB, CIF, CFR;

6. Structure of Incoterms 1. „ A” Provisions= seller’s obligations; „B” Provisions= buyer’s obligations; A1 Providing of goods and documents in conformity with the contract; B1 Payment of the price; A2/B2 Licences, authorizations and formalities; A3/B3 Contract of carriage and insurance; A4 Delivery=seller’s performance; B4 Taking delivery on the side of the buyer;

7. Structure of Incoterms 2. A5/B5 Transfer of risk; A6/B6 Transfer of costs; A7 Notice to the buyer; B7 Notice to the seller; A8/B8 Proof of delivery, transport document or equivalent electronic message; A9 Checking- packaging – marking; B9 Inspection of goods; A10/B10 Other obligations: security-related information;

8. The groups of Incoterms 1. Group E Departure=omni-modal; one-point; EXW Ex Works.. named place Group F Departure Main carriage unpaid; all of these are „one-point” FCA Free carrier,.. named place (omni-modal term), FAS Free alongside Ship … named port of departure = sea clause; FOB Free on Board... named port of departure= sea clause; departure= sea clause;

9. The groups of Incoterms 2. Group D Arrival/Destination=omni-modal; one-point; DAP Delivered at point of a named place (e.g. buyer’s premise; DAT Delivered at the terminal of a named destination; DDP Delivered duty paid at named place of destination;

10. Variants of Incoterms Parties frequently add words to an Incoterm. For example: ► FOB stowed, FOB trimmed ► EXW loaded, ► CFR/CIF landed Incoterms do not give guidance whatsoever for such additions, therefore parties are strongly advised to clarify whether they only mean: ► function ► cost or/and ► risk

11. The groups of Incoterms 3. Group C Main carriage paid to the destination place or port; Two-points clause that means: The seller contracts for the main carriage=from the loading place/or port to the unloading/discharging place/port (place or port of destination;) The seller contracts for the main carriage=from the loading place/or port to the unloading/discharging place/port (place or port of destination;) The seller pay the freight, all transport-related costs; BUT The seller pay the freight, all transport-related costs; BUT The transported-related risks are passing at the moment when the goods are loaded on the departing vehicle in the loading port; The transported-related risks are passing at the moment when the goods are loaded on the departing vehicle in the loading port; CFR Cost and Freight =sea clause; CIF Cost, Insurance and Freight=sea clause; CPT Carriage paid to=omni-modal; CIP Carriage and Insurance paid to=omni-modal;