EXW, FCA etc.
The official abbreviations for the trade terms.
Trade term applicable to transport by ship
Trade term applicable to land transport
All other trade terms are applicable to any mode
of transport.
Documents
Documents refers to the seller's and the buyer's
obligation to acquire documents to be produced
at certain stages of transit. The validity of the
documents are, however, not indicated. Such
documents include, for instance, export licences,
certificates of origin, transport documents and
insurance certificates.
The seller acquires the documents,
where requested by the buyer, at the buyer's expense
and risk. The buyer is responsible for the documents
being valid for a specific purpose.
Incoterms 2000
Critical points in international transports
This chart aims at illustrating the relationship
between the seller and the buyer in international
trade, and at providing a useful tool both for
day-to-day work and for drawing up contracts
of sale.
The chart is based on the trade terms
contained in Incoterms 2000 approved by the
International Chamber of Commerce and dealing
with the seller's and buyer's obligations to one
another. The trade terms only concern obligations
stipulated in the contract of sale. As the Incoterms
take the form of written text, it is difficult to
illustrate in a simple manner all the different
situations occurring in international transports.
The contracting parties may adopt the
Incoterms as such as the basis for their contract,
but in certain cases amendments and additions
can be made.
In case of difference of interpretations
between this chart and the Incoterms, the latter
shall be decisive. As for differences of inter-
pretation between the Finnish and English-
language Incoterms, the latter takes precedence.
To avoid misinterpretation, this chart should be
used together with Incoterms 2000.
Risks
Exposure to an event which may cause loss
of or damage to goods is referred to as a risk.
Insurance can be taken out against most
risks.
Costs
All expenses for goods and transport of goods
are referred to as costs.
The seller is liable for costs. The buyer is liable for costs.
The critical point to be defined
separately in the contract
*Insurance
Under the CIP and CIF clauses, the seller must,
on behalf of the buyer, take out insurance at his
own expense against transport risks. The clauses
provide that the insurance shall be taken on at
least the minimum terms and conditions ­ such
as the Institute Cargo Clauses (C) ­ unless the
seller and the buyer agree otherwise. These clauses
cover, however, only part of the cargo risks.
Cargo insurance taken out by the seller
up to the named port of destination or the
named place of destination.
The buyer must
acquire the documents
at his own expense
and risk.
Lapinmäentie 1, Helsinki
Postal address: FIN-00013 Pohjola, Finland
Tel. +358 10 559 11 Fax +358 10 559 3276 www.pohjola.fi
The buyer is liable for loss
of or damage to goods.
In this description, a critical point is that point
in transit at which the seller's obligations cease
and the buyer's obligations commence.
International Chamber of Commerce
Original Incoterms 2000 is ICC publication No 560, ISBN 92-842-1199-9,
protected under trademark and copyright provisions. All rights reserved.
More information: www.iccwbo.org
The seller must
acquire the documents
at his own expense
and risk.
The seller is liable for loss
of or damage to goods.
The trade terms do not define the critical point.
Therefore, the critical point, i.e. the place where all
contractual obligations are transferred from the seller
to the buyer, must be precisely defined in the contract.
KEY TO THE TERMS USED
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