International rules and organizations Incoterms 2000 [iNKOTERMS 2000] Glossary of Incoterms
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Shipper -In some cases it was necessary to use the same term to convey two different meanings, simply because there was no suitable alternative. Thus, for example, the term "shipper" means both the person who hands over the goods for carriage and the person who contracts with the carrier: however, these two "shippers" may be different people, for example, under a contract with the term FOB, where the seller hands over the goods for transportation, and the buyer enters into a contract with the carrier.
Supply- It is especially important to note that the term "delivery" is used in Incoterms in two different senses. First, it is used to determine when the seller has fulfilled his delivery obligations as defined in A.4. Incoterms. Second, the term "delivery" is also used in relation to the seller's obligation to take or take delivery of the goods, an obligation that appears in Articles B.4. collection of Incoterms.
When used in this second case, the word "delivery" means, firstly, that the buyer "accepts" the very nature of the "C"-terms, namely that the seller fulfills his obligation to ship the goods, and, secondly, that the buyer is obliged accept the goods. This last obligation is important in order to avoid unnecessary storage charges until the buyer has collected the goods. Thus, under CFR and CIF terms, the buyer is obliged to take delivery of the goods and take them over from the carrier.
If the buyer fails to comply with this obligation, he may become liable to indemnify the seller who has entered into a contract of carriage with the carrier, or the buyer may be forced to pay demurrage in order for the carrier to release the goods to him. When in this case it is said that the buyer is obliged to "take delivery", this does not mean that the buyer accepted the goods as satisfying the contract of sale, but only the fact that the seller fulfilled his obligation to hand over the goods for carriage in accordance with the contract of carriage, which he shall conclude in accordance with the terms of clauses A.3 a) of the "C" terms. Thus, if, after receiving the goods at the destination, the buyer finds that the goods do not meet the terms of the contract of sale, he will be able to use any measures that are provided to him by the contract of sale and the relevant law against the seller. As already indicated, these issues are completely outside the scope of Incoterms.
Usual- The word "usual" appears in several terms, for example, in the term Ex works in relation to the time of delivery (A.4.) and in "C" in terms of the documents that the seller is obliged to provide and the contract of carriage that the seller must provide (A .8., A.3.).
Fees- With regard to the obligation to clear goods for import, it is necessary to define what is meant by "fees" that must be paid when goods are imported. According to the term DDP in article A.6. Incoterms 1990 used the expression "official fees payable on export and import of goods". According to the term DDP in article A.6. Incoterms 2000 the word "official" was omitted on the grounds that this word caused uncertainty in determining whether charges were "official" or not.
The deletion of this word did not imply a significant change in meaning. The "charges" to be paid concern only those charges which are a necessary consequence of the import as such and which must therefore be paid in accordance with the relevant import regulations. Any additional fees charged by private parties in connection with importation, such as storage fees not related to the obligation to clear the goods, are not included in these fees. However, the fulfillment of this obligation may well result in some costs to customs brokers or freight forwarders if the party incurring this obligation does not perform this work itself.
Ports, places, points, premises- With regard to the indication of the place where the goods are to be delivered, various terms are used in Incoterms. In terms intended to be used exclusively for the carriage of goods by sea - such as FAS, FOB, CFR, CIF, DES and DEQ - the expressions "port of shipment" and "port of destination" were used. In all other cases, the word "place" was used.
In some cases it seems necessary to also indicate a "point" within a port or place, as the seller may need to know not only that the goods are to be delivered to a certain area, such as a city, but also where within that city the goods are to be delivered. at the disposal of the buyer. Such information is often absent in sales contracts, and therefore Incoterms provide: if a specific point within the agreed place has not been agreed upon, and if there are several such points, the seller can choose the point that suits him best (see, for example, the term FCA article A. 4.). Where the delivery point is the seller's "place", the expression "seller's premises" (FCA term A.4.) has been used.
ship and vessel- In the terms intended for use in the carriage of goods by sea, the expressions "vessel" and "ship" are used as synonyms. Needless to say, the term "ship" should be used when included in the trade term itself, such as "free alongside ship" (FAS) and "delivery from ship" (DES). Also, in view of the traditional use of the expression "passing the ship's rail" in the term FOB, the word "ship" should be used in this connection.
Check and Inspection- In articles A.9. and B.9. In the Incoterms, the headings "check - packing and marking" and "examination of the goods" were used respectively. Although the words "inspection" and "examination" are almost synonymous, it seemed appropriate to use the first word in relation to the seller's obligation to deliver under Article A.4. and leave the second word for the specific case where "pre-shipment inspection" is performed, since such inspection is usually only necessary when the buyer or the authorities of the exporting or importing country want to make sure that the goods meet the terms of the contract or official conditions before the goods are shipped.
Customs clearance- with each reference to the obligation of the seller or buyer to assume the obligations associated with the passage of goods through the customs of the country of export or import, now follows an explanation that this obligation includes not only the payment of duty and all other fees, but also the fulfillment and payment of all administrative actions related to the passage of goods through customs and information from the authorities in this regard.
Further, in some areas it was considered, albeit quite wrongly, unnecessary to use terms dealing with the obligation of customs clearance when, like the situation in the countries of the European Trade Union or other free trade areas, there is no obligation to pay customs duties and there are no restrictions on imports or exports.
To clarify these situations in articles A.2. and B.2., A.6. and B.6. In the relevant Incoterms, the words "if required" have been added to ensure that the terms are used without any ambiguity in cases where customs procedures are not needed.
It is generally desirable that customs clearance be arranged by the party resident in the country in which the clearance is to take place, or at least by someone acting on that party's behalf. Thus, the exporter usually clears the goods for export, while the importer must clear the goods for import.
In the wording of Incoterms 2000, the terms FAS and DEQ impose the obligation of customs clearance of goods for export on the seller, and goods for import - respectively on the buyer, while the term EXW, which represents the minimum obligations of the seller, was left unchanged (duty for customs clearance for export is the responsibility of the buyer). Under the term DDP, the seller separately agrees to do what the term itself implies - Delivered, Duty Paid, namely to clear the goods for import and pay any duties arising therefrom.
Inspection of goods- In many cases, the buyer may be advised to arrange for the goods to be inspected before or at the time of handing over by the seller for carriage (so-called pre-shipment inspection or PSI). Unless the contract provides otherwise, the buyer shall pay the cost of such an inspection, which is carried out in his own interests.
However, if the inspection was carried out in order to enable the seller to comply with any mandatory rules applicable to the export of the goods in his own country, he must pay for such inspection himself, unless the term EXW is used, since when using this term, the costs of inspection lie with the buyer.
- In some cases it was necessary to use the same term to convey two different meanings simply because there was no suitable alternative. Thus, for example, the term "shipper" means both the person who hands over the goods for carriage and the person who contracts with the carrier: however, these two "shippers" may be different people, for example, under a contract with the term FOB, where the seller hands over the goods for transportation, and the buyer enters into a contract with the carrier.
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