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Incoterms - Coggle Diagram
Incoterms
1. Introduction to Incoterms® rules
a. Definition
International Chamber of Comerce
ICC is the institutional representative of 45 million companies in more than 170 countries, making it easier for businesses to trade internationally.
Incoterms
First published by ICC in 1936, Incoterms® rules are a set of eleven three-letter trade terms, reflecting business-to-business practice in contracts for the sale and purchase of goods.
b. What the Incoterms® rules do
The Incoterms® rules explain a set of eleven of the most commonly used three-letter trade terms, reflecting business-to-business practice in contracts for the sale and purchase of goods.
The Incoterms® rules describe:
Risks
: Where and when the seller “delivers” the goods, in other words where risk transfers from seller to buyer
Costs
: Which party is responsible for which costs. E.g: transport, packaging, loading or unloading costs, and checking or security-related costs.
Obligations
: Who does what as between seller and buyer. E.g: who organises carriage or insurance of the goods or who obtains shipping documents and export or import licences
c. What the Incoterms® rules do not do
The Incoterms® rules are NOT in themselves—and are therefore no substitute for—a contract of sale. They are devised to reflect trade practice for no particular type of goods—and for any. They only become part of a contract when they are incorporated into a contract which already exists. Neither do the Incoterms® rules provide the law applicable to the contract
2. Rules for any mode(s) of transport
a.
EXW - Ex Works
: Giao tại xưởng
EXW: Suitable for domestic sales, but extreme care should be exercised for international sales as loading and export formalities are for the buyer.
b.
FCA - Free Carrier
: Giao cho người chuyên chở
FCA: Any mode/s of transport, delivery at origin, buyer arranges carriage.
f.
DPU - Delivery at Place Unloaded
: Giao tại địa điểm đã dỡ xuống
DPU: Any mode/s of transport, seller arranges carriage, delivery at destination, unloaded.
c.
CPT - Carriage Paid To
: Cước phí trả tới
CPT: Carriage Paid To means that the seller delivers the goods and transfers the risk to the buyer.
g.
DDP - Delivered Duty Paid
: Giao hàng đã nộp thuế
DDP: Suitable for domestic sales, but extreme care should be exercised for international sales as import and export formalities are for the seller.
d.
CIP - Carriage and Insurance Paid To
: Cước phí và bảo hiểm trả tới
CIP: Any mode/s of transport, delivery at origin, seller insures buyer's risk and arranges carriage to destination.
e.
DAP - Delivered at Place
: Giao tại nơi đến
DAP: Any mode/s of transport, seller arranges carriage, delivery at destination, not unloaded.
3. Rules for only sea and
inland waterway transport
FAS - Free Alongside Ship: Giao dọc mạn tàu
FAS: Seller delivers goods alongside the vessel, buyer arranges carriage.
FOB - Free On Board: Giao lên tàu
FOB: Seller delivers goods on board the vessel, buyer arranges carriage.
CFR - Cost and Freight: Tiền hàng và cước phí
CFR: Seller delivers goods on board the vessel and arranges carriage.
CIF - Cost, Insurance and Freight: Tiền hàng, bảo hiểm và cước phí
CIF: Seller delivers goods on board the vessel, insures buyer's risk and arranges carriage.
CIF <=> FOB
CIF Price = FOB Price + Ocean Freight + Insurance
<=> CIF Price = FOB Price + Ocean Freight + CIF Price * Insurance Rate
<=> CIF Price - CIF Price * Insurance Rate = FOB Price + Ocean Freight
<=> CIF Price * (1 - Insurance Rate) = FOB Price + Ocean Freight
<=> CIF Price = (FOB Price + Ocean Freight) / (1 − Insurance Rate)
4. Decision Flowchart
a) Seller’s Point of View (tự đọc slide & sgk)
b) Buyer’s Point of View (tự đọc slide & sgk)