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
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.
Exposure to an event which may cause loss
of or damage to goods is referred to as a
Insurance can be taken out against most
All expenses for goods and transport of goods
are referred to as
The seller is liable for costs. The buyer is liable for costs.
The critical point to be defined
separately in the contract
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
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
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