aaa INCOTERMS (GO share PY. INCOTERMS 2010 - The INCOTERMS (Intemational Db Commercial Terms) is a universally recognized set of definitions of intemational trade terms, defining the respective roles of the buyer and seller in the arrangement of transportation and other responsibilities and clarify when the ‘ownership of the merchandise takes place. They are used in conjunction with a sales agreement or other method of transacting the sale. TERMS FOR ALL TRANSPORT MODE + EXW- Ex Works — Title and risk pass to buyer including payment of all transportation and insurance cost from the seller's door. Used for any mode of transportation + FCA- Free Carrier Title and risk pass to buyer including transportation and insurance cost when the seller delivers goods cleared for export to the carrier. Seller is obligated to load the goods on the Buyer's collecting vehicle; itis the Buyer's obligation to recieve the Seller's arriving vehicle unloaded. + CPT - Carriage Paid To -- Title, risk and insurance cost pass to buyer when delivered to carrier by seller who pays transportation cost to destination, Used for any mode of transportation. * GIP - Carriage and Insurance Paid To ~Title and risk pass to buyer when delivered to carrier by seller who pays. transportation and insurance cost to destination. Used for any mode of transportation. * DAT - Delivered At Terminal — Title and risk pass to buyer when seller delivers and unloads goods at named terminal. Used for any mode of transportation + DAP - Delivered At Place -- Title and risk pass to buyer when seller delivers goods to named place ready for unloading. Used for any mode of transportation. {ileME: MANAGEMENT ACCOUNTINGILecturesiMA_ Overview ad cost conceptsLcture 2 9:28 3 Material and Labour Costing/Materilincice terms.htm 15aaa INCOTERMS + DDP - Delivered Duty Paid — Title and risk pass to buyer when seller delivers goods to named destination point cleared for import. Used for any mode of transportation. TERMS FOR SEA/INLAND WATERWAY TRANSPORT ONLY + FAS -Free Alongside Ship —Title and risk pass to buyer including payment of all transportation and insurance cost once delivered alongside ship by the seller. Used for sea or inland waterway transportation. The export clearance Bb obligation rests with the seller. + FOB - Free On Board and risk pass to buyer including payment of all transportation and insurance cost once delivered on board the ship by the seller. Used for sea or inland waterway transportation. * CFR - Cost and Freight -- Title, risk and insurance cost pass to buyer when delivered on board the ship by seller who pays the transportation cost to the destination port. Used for sea or inland waterway transportation. * CIF - Cost, Insurance and Freight - Title and risk pass to D buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation. Transport Obligations, costs and risks EXW Cariage Risk tobe transfer Cost arranged from the transfer bythe —sellerto. from the buyer the buyer seller to the when the buyer when goods are the goods at the are at the disposal disposal of ofthe the buyer buyer FCA Carriage Risk tobe transfer arranged fromthe Cost bythe —sellerto transfer buyer or the buyer from the the seller when the seller to the onthe goods —_buyer when buyers have _the goods behalf been —_have been delivered delivered tothe to the carrier at carrier at {ileME: MANAGEMENT ACCOUNTINGILecturesiMA_Overiew and cost conceptsLecture 2 9:28 3 Material and Labour CostingyMateril incice terms.him 25,aaa INCOTERMS the the named named place place cPT Camiage Risk Cost tobe transfer transfer at arranged from the port of bythe —sellerto. destination, seller the buyer_buyer when the paying goods —suchcosts have as arenot been forthe delivered seller's tothe account carrier under the contract of carriage cr ariage Risk Cost and transfer transfer at insurance from the port of tobe —sellerto destination, arranged the buyer buyer bythe — whenthe paying seller goods —_suchcosts have as are not been forthe delivered seller's to the account camier under the contract of carriage DAT Cariage Risk tobe transfer oS arranged from the fom the bythe —sellerto rome seller the buyer Sellerto the when the buyer when goods are the goods delivered oT and delivered unloaded and at unloaded terminal at terminal DAP Cariage Risk Cost tobe transfer transfer arranged fromthe from the bythe sellerto seller to the seller the buyer buyer when when the the goods goods are are delivered delivered tonamed atnamed place place ready for ready for {ileifE/MANAGEMENT ACCOUNTINGILacturesiMA_¢ new and cost concepsiLecture2%26 3 Material and Labour CostingMateral imcice terms him 16