INCOTERMS  2011

DAT (delivered at Terminal)

- The seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer

at a named terminal at the named port or place of destination

- “Terminal” refers and includes quays,warehouses,container yard or road, rail or air terminal

- Both parties should agree on a terminal at which point the risks will transfer from seller to the buyer of the goods

-If it is intended that the seller is to bear all costs from a terminal to anaother point then DAP or DDP may apply

-The seller is responsible for the costs and risks to bring the goods to the point specified in the contract

-The seller should ensure that their forwarding contract mirrors the contract of sale

-The seller is responsible for the export clearance proceeduresin the country of origin

-The buyer/Importer is responsible for the following :

clearance of the goods at the port of import

payment of import duties & GST

arrange for the goods to be delivered to the final point

-If the parties intend the seller to bear the risks and costs of moving goods from the terminal to another place then the terms DAP should be used

 

DAP  ( Delivered at Place )

- The seller delivers the goods to a specified place at the disposal of the buyer/importer on the arriving means of transport ready for

unloading at the named place

-Seller and buyer agree on exactly where the transfer of risk takes place

-If the seller is responsible for the clearing the goods, paying duties etc then a consideration should be given to chnage to DDP

 

DDP  (Delivered Duty Paid)

-The seller delivers the goods to a named country & place as per the sale contract

-The seller bears all risks, costs including duties, taxes and  other charges of delivering the goods cleared of customs to an agreed place

-The seller can exclude some of the costs payable upon importation ie GST the wording should be

“delivered duty paid GST unpaid at…  (place of destination)

-The seller must all export / import licenses in place either directly or indirectly

 

CFR ( Cost and Freight)

-The seller is perform all export procedures

-The seller must pay the costs and freight necessary to bring the goods to a named  port as per the contract of sale

-The risks are transferred to buyer once the goods have been delivered on board vessel for shipment

-All import procedures are at the cost to the buyer

 

CIF ( Cost Insurance and Freight )

-This is the same as CFR except for the added cost of insurance which the seller is to provide against the buyer for loss or damage

 

EXW ( Ex works )

-This term offers the minimum obligation for seller

-The seller has to offer the goods available at their premises only

-Buyer is to arrange all export and import obligations from sellers premises including all export & import licenses

 

FOB (Free on Board )

-The seller must fulfill an obligation to deliver the goods to the named port of shipment as per t he sale contract and

“pass over the ships rail”

-The seller is required to clear customs of the goods for export

-All import requirements are at the risk of the buyer

 

 

Points to Note

-Inco terms purely refer to values as per the contract of sale between a buyer and seller and are not set by Freight Forwarders

therefore it is necessary to check commercial invoices rather than bills of lading/ airwaybills which are purely a guide only

-Inco terms are not the sole scource of obtaining a value for duty with in Australia

-DDP. it is intended that we at Regroup Logistics will be requesting the consignee/buyer if they wish to pay GST. If they do not wish to pay GST then it will be sought in writing that if the seller does not agree to paying this tax when they will if the seller disputes it. This is donebased on the premise that GST can be treated as a credit on the buyers Business Activity Statement (BAS)