INCOTERMS (INternational COmmercial TERMS), are a set of uniform rules that define the trade terms in international arena. These define the rights and obligations of parties involved in an international transaction.
The INCOTERMS are drafted and published by ICC (International Chamber of Commerce).
INCOTERMS do not cover ownership or the transfer of title of goods. It is crucial to agree on the INCOTERMS at the start of the negotiation between the buyer and seller, as it affects the costs and responsibilities involved in shipping, insurance and tariffs.
Following, are the standard INCOTERMS 2012 :
INCOTERMS are designed to arrange for the transfer of risk from seller to buyer at an unambiguous convenient place where goods can be inspected.
The Final choice of INCOTERM used in the contract is for negotiation between buyer and seller.
| Rules for any mode or modes of transport | Rules for sea and inland waterway transport | ||||||||||
| EXW | FCA | CPT | CIP | DAT | DAP | DDP | FAS | FOB | CFR | CIF | |
| Ex Works | Free Carrier | Carriage Paid To | Carriage & insuarance Paid To | Delivered at Terminal | Delivered at Place | Delivered Duty Paid | Free Alongside Ship | Free on Board | Cost & Freight | Cost, insurence & Freight | |
| Cost Heading | Who Pays | Who Pays | Who Pays | Who Pays | Who Pays | Who Pays | Who Pays | Who Pays | Who Pays | Who Pays | Who Pays |
| Export Packing | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Marking & Labeling | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Block and Brace | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Export Clearance (License,EEI/AES) |
Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Freight Forwarder Documentation Fees | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Buyer | Buyer | Seller | Seller |
| Inland Freight to Main Carrier | Buyer | 2 | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Origin Terminal Charges | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Buyer | Seller | Seller | Seller |
| Vessel Loading Charges | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Buyer | Seller | Seller | Seller |
| Ocean Freight/Air Freight | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Buyer | Buyer | Seller | Seller |
| Nominate Export Forwarder | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller | Seller | Buyer | Buyer | Seller |
| Marine Insurance | 3 | 3 | 3 | Seller | 3 | 3 | 3 | 3 | 3 | 3 | Seller |
| Unload Main Carrier Charges | Buyer | Buyer | 4 | 4 | Seller | Seller | Seller | Buyer | Buyer | 4 | 4 |
| Destination Terminal Charges | Buyer | Buyer | 4 | 4 | 4 | Seller | Seller | Buyer | Buyer | 4 | 4 |
| Nominate on- Carrier | Buyer | Buyer | 5 | 5 | 5 | 5 | Seller | Buyer | Buyer | Buyer | Buyer |
| Security Information Requirements | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer |
| Customs Broker Clearance Fees | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller | Buyer | Buyer | Buyer | Buyer |
| Duty,Customs Fees,Taxes | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller | Buyer | Buyer | Buyer | Buyer |
| Delivery to Buyer Destination | Buyer | Buyer | 5 | 5 | 5 | 5 | Seller | Buyer | Buyer | Buyer | Buyer |
| Delivering Carrier Unloading | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer |
| Notes: | 1 - | Incoterms® 2012 do not deal with the parties’ obligations for stowage within a container and therefore, where relevant, the parties should deal with this in the sales contract. | |||||||||
| 2 - | FCA seller's Facility – Buyer pays inland freight; other FCA qualifiers. seller arranges and loads pre-carriage carrier and pays inland freight to the 'F' delivery place. | ||||||||||
| 3 - | Incoterms® 2012 does not obligate the buyer nor must the seller to insure the goods, therefore this issue be be addressed elsewhere in the sales contract. | ||||||||||
| 4 - | Charges paid by Buyer or seller depending on contract of carriage. |
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| 5 - | Charges paid by seller if through Bill of Lading or door-to-door rate to Buyer's destination. |
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LEOPIC keeps business contact with many International Shipping Companies and LEOPIC provide services from CHINA, EUROPE, FAREAST & MIDDLE EAST.
In china LEOPIC provide services from the world’s famous ports SHANGHAI, NINGBO, HONGKONG, SHENZHEN, GUANGZHOU, TIANJIN, QINGDAO.
LEOPIC makes online electronic shipping space booking, freight track, ship schedule check, cargo space reservation, confirmation, preplanning and bill lading.
1. Full Container Load (FCL) :
By virtue of the intensive liner of the three international ports—Hong Kong Port, Shanghai Port and Ningbo Port as well as we can provide flexible choices including different shipping ports such as Chiwan, Yantian, Huangpu and Hong Kong, different shipping companies such as NYK, SAFMARINE/ MAERSK, APL, WANHAI, CMA, OOCL, COSCO, KMTC, ZIM/GOLD STAR, PIL etc. and different customs clearance dates from Monday to Sunday no matter how urgent is the shipping date.
1. Less Container Load (LCL) :
LEOPIC makes cooperation with many large logistics companies, and provides LCL service in Shenzhen Port, Hong Kong Port, Guangzhou Port, other major ports of the world and inland points. LEOPIC makes flexible arrangement of transportation and customs clearance of LCL according to customer demands and the difficulty level of customs clearance, and ensures that the good can safely arrive at destination with the lowest cost.