Robert Santos on LinkedIn: Incoterms - EXW and DDP - How much does it affect businesses? (2024)

Incoterms; Not As Easy As It SeemsDespite the fact that the 11 terms of Incoterms appear simple and understandable at first glance, it should be noted that a significant percentage of claims referred to the ICC Arbitration Committee are about disputes that are directly or indirectly related to Incoterms. In the following, I briefly mention some of these common ambiguities.The following topics tend to remain unclear to the parties at the time of finalizing a contract for the sale or purchase of goods.a.Understanding the difference between “place of delivery” and “place of destination” in the purchase/sale orderb.Identifying the point at which risk is transferred when goods are in transitc.Understanding whether Incoterms Rules can be used to identify ownership of goods and to recognize the point where the sale become receivabled.Not specifying the year of publication along with the appropriate Incoterms rulee.Insurance cover under Incoterms 2020 Rule CIFf.Banker’s understanding of and response to Incoterms RulesI will discuss these in detail and provide some answers in the following posts and in the meantime I’d be glad to see your opinions and answers in comments.#incoterms #incoterms2020 #icc #internationalcommerce #internationalarbitration

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We have just completed the course certifying : Introduction to International Commercial Terms (Incoterms)Having completed this module, you will be able to:1_Discuss the advantages and disadvantages of incoterms2_Explain how digitalization has influenced the application of Incoterms in modern international trade3_Identify the various types of incoterms used for international trade 4_Distinguish between incoterms for any mode of transport and incoterms for sea and waterway transport5_Recall the responsibilities of the buyer and the seller in any incoterm arrangement #Incoterms #International #Commercial #Terms #InternationalCommercialTerms #digitalization #moderninternationaltrade #internationaltrade #typesofincoterms #responsibilities #incotermarrangement #EXW #FCA#CPT #CIP #DAT #DPU #DDP #FAS #CFR #FOB #CIF

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What are the Incoterms rules? The Incoterms or International Commercial Terms, are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law. They are widely used in international commercial transaction or procurement processes and their use is encouraged by trade councils, courts and international lawyers.Incoterms inform sales contracts defining respective obligations, costs, and risks involved in the delivery of goods from the seller to the buyer, but they do not themselves conclude a contract, determine the price payable, currency or credit terms, govern contract law, or define where title to goods transfers will occur. Division of Incoterms:-1.EXW- Ex Works2.FCA- Free Carrier3.CPT- Carriage paid to4.CIP - Carriage and Insurance Paid to 5.DAP- Delivered at Place6.DPU- Delivered at Place Unloaded7.FAS - Free alongside ship 8.FOB - Free on board9.CIF - Cost Insurance and Freight #shippingterms #procurement #purchasing #airfreight #seafreight #transportation

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I have worked within three different Incoterms; Incoterms 2000, Incoterms 2010 and Incoterms 2020. I became more aware of Incoterms after 2010, before then- my work didn't require me to really understand Incoterms!That changed in 2014 when all contracts came bearing the ruling Incoterms behind the price.Incoterms define the responsibilities of buyers and sellers in international trade transactions. They specify who is responsible for transportation, insurance costs, customs clearance and establish at what point the risk of loss or damage to the goods passes from the seller to the buyer!We can all rest easy as we continue to use Incoterms 2020- the next review should be by 2030 (all things being equal)!#didyouknow #incoterms #icc #fob #cfr #cif #exworks #chambersofcommerce #incoterms2020 #internationaltrade #freight #risk #shipping

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DAP vs DDP incoterms, what are the differences? #incoterms #dap #ddp #logisticssolutions #shippingindustry

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"Correlation between Incoterm and international multimodal transportation"The link between Incoterms and international multimodal transportation is crucial for smooth and efficient international trade. Here's a brief explanation:**Multimodal transportation:** involves using two or more different modes of transport (air, sea, land, etc.) to move goods from origin to destination. It offers flexibility and can be cost-effective for certain routes.**Incoterms:** are standardized trade terms defined by the International Chamber of Commerce (ICC). They clarify who is responsible for what at different stages of the transportation process, including costs, risks, and customs clearance.**Correlation:*** **Clearly define responsibilities:** By specifying which party (buyer or seller) handles things like transportation costs, customs clearance, and insurance for each mode of transport, Incoterms prevent confusion and potential disputes.* **Reduce risk:** Understanding who bears the risk at each stage allows both parties to take appropriate measures to mitigate potential losses.* **Facilitate communication:** Using common Incoterms language simplifies communication and avoids misunderstandings between buyers and sellers from different countries and legal systems.* **Increase efficiency:** Clear allocation of responsibilities streamlines the multimodal transportation process, minimizing delays and unnecessary administrative hurdles.**Multimodal Incoterms:**There are seven specific Incoterms designed for multimodal transportation, covering different levels of responsibility and cost allocation. Choosing the right Incoterm depends on the specific needs of the trade agreement and the complexity of the multimodal route.**Examples:*** **CPT (Carriage Paid To):** Seller pays for transportation to a named destination but not customs clearance or import duties.* **CIP (Carriage and Insurance Paid to):** Similar to CPT, but seller also covers insurance for the goods during transportation.* **DAP (Delivered At Place):** Seller delivers the goods to the agreed place (e.g., buyer's warehouse) but doesn't handle customs clearance or import duties.By using Incoterms effectively in international multimodal transport, businesses can ensure greater clarity, reduced risk, and improved efficiency in their global trade operations.#wyndgmanchannel

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Most easiest explanation!

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Best Graphical Presentation for someone who doesn’t know incoterms

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Delivered Duty Paid (DDP): Unveiling IncotermsUnderstanding Incoterms is essential for successful global transactions.One Incoterm, outlined by the International Chamber of Commerce is“Delivered Duty Paid”(DDP).“DDP states that the seller is responsible for all transportation and costs until the goods have been delivered at an agreed-upon destination. The seller is only responsible for unloading the goods”.Incoterms play a pivotal role in:✔Trade contracts✔Affecting pricing✔Liability✔LogisticsTaking the time to learn and understand each Incoterm can support you in better navigating the complexities of international commerce.Do you have questions about DDP or other Incoterms? Are there specific aspects of trade you’d like to explore further?Thenreach out to us directly by visiting our website:https://lnkd.in/ec_S83rCStay tuned for continued Incoterm definitions and more!#alscustoms#alscustomsservices#DDP#incoterms

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Incoterms In its simplest form !!

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