Incoterms 2000

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