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Range of turnkey services
Mon-Sun: 09:00 – 18:00
+7 911 003 33 97, +7 812 928 08 48 info@ved-rus.com
Main > Incoterms
Incoterms
Incoterms
Incoterms (English Incoterms, International commerce terms) – international rules for the interpretation of the most widely used trade terms in foreign trade. International trade terms are standard terms and conditions of an international sale and purchase agreement that are predefined in an internationally recognized document. These conditions regulate the moment of transfer of ownership of the goods (and, accordingly, responsibility for the goods spoiled in transit, incorrect paperwork for the goods, etc.).
The first group of terms of Incoterms 2010 – group “E” – consists of only one delivery condition “EXW” – ex works – and consists in the provision of goods by the seller to the buyer directly at his enterprise. All other duties such as transportation or customs clearance are entirely the responsibility of the buyer. This delivery is referred to in commercial documents as “EXW Place Name”. These terms of delivery can be used on any means of transport, since, in principle, it does not matter how the buyer will transport the goods.
The second group – “C” – means that the seller pays for the main freight. Thus, after the conclusion of the contract for the sale of goods, the seller is obliged to transfer the goods to the carrier, who will transport the goods. This group of terms can be used for transportation by any means of transport and includes four basic terms of delivery:
The third group of terms – “F” – does not provide for payment of the main freight by the seller. Upon acceptance of these terms of delivery, the seller transfers the goods to the first carrier, and all issues of payment and relationship with the carrier fall on the buyer. This category of terms, except for the term “FCA”, applies exclusively to transport by sea or inland waterway. In turn, this group includes three terms:
The fourth group – “D” – is characterized by the concept of “arrival”. When using it, the seller, after the conclusion of the sales contract, must deliver the goods to the buyer at the destination agreed with him. It can be either a specific settlement or a logistics terminal. Depending on the agreement reached, customs duties in the country of destination can be paid by either the seller or the buyer. These basic conditions apply for transportation by any means of transport. This group was most significantly revised compared to the previous version of Incoterms 2000. Four terms of delivery were excluded from the group: DDU – delivery without payment of duty, DAF – delivery to the border, DEQ – delivery from the pier and DES – delivery from the ship. Currently, the group of deliveries of category “D” includes three basic conditions.
- auto transportation (price on request).
- Due to our Auto fleet in Europe, we are ready to offer you good rates, which are calculated individually;
- multimodal transportation (price on request);
- sea transportation (price on request);
- railway transportation (price on request);
- air transportation (price on request).
It is comfortable and convenient with us, we and our partners work all over the world and are ready to offer you the best rates.
For the proper use of the terms of the basic terms of delivery of Incoterms-2010, the entrepreneur must simply insert the appropriate delivery basis into the text of the contract.
Despite the fact that the terms of Incoterms are recognized throughout the world, when carrying out deliveries, it should be borne in mind that each country and each port has its own customs of business etiquette, which may affect the interpretation of specific nuances of delivery.
When introducing the terms Incoterms-2010 into the text of the agreement, it is necessary to strive for the most precise definition of the destination or port in which the transfer of responsibility should take place. In addition, it must be remembered that the basic terms of delivery EXW, FCA, DAT, DAP, DDP, FAS, FOB stipulate that the place of delivery and the place of transfer of risks to the buyer are the same.
But when choosing CPT, CIP, CFR, CIF as the basic delivery condition, the place to which the transportation is carried out is indicated as the destination.
Basic delivery terms, despite their versatility, are still not full-fledged sales contracts. Incoterms conditions do not specify, for example, methods of payment for goods, the consequences of violating contractual obligations or determining the rules for the transfer of ownership of goods. It should also be remembered that when drawing up a foreign trade agreement, it is worth considering the national laws that are binding on the application. Moreover, such a national law will take precedence over the terms of Incoterms.
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The company ‘VED-Rus’ is ready to offer services for labeling storage and consolidation of goods in Europe in its own warehouse.
Own vehicle fleet
Our company has its own vehicle fleet in Europe. Thus, we offer our customers the lowest cost for international delivery of goods by road.
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The time for issuing a declaration for goods are from 40 minutes. We will calculate the optimal transportation route, which will ensure the delivery of the cargo in the shortest possible time.
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