Incoterms

I. Read and lean new words:

1. multimodal

2. mode of transport

3. ship's rail

4. critical point of responsibility

5. risk of loss or damage

– мультимодальный

– вид транспорта

– рейлинг судна

– критическая точка ответств-ти

– риск утраты или повреждения товара

6. terminal

7. pallet

8. through

9. assume responsibility

10. port of shipment

11. port of discharge

– грузовые склады с сортировоч-

ными устройствами в портах

– поддон

– сквозной

– взять на себя ответствен­ность

– порт отгрузки

– порт разгрузки

12. receipt

13. vehicle

14. fulfill obligations

15. meet the requirements

– получение, расписка в получ-и

– транспортное средство

– выполнять обязательства

– удовлетворять требованиям, обеспечить потребности

16. RO/RO Roll on/Roll off

17. ferry

18. custody

19. wagon

20. carrier

– метод транспортировки грузов с горизонтальной погрузкой и выгрузкой

– паром

– хранение

– товарный вагон

– перевозчик

21. carry – везти, перевозить

22. carriage – перевозка, транспортировка

23. by rail – по железной дороге

24. quay (wharf) – причал

25. lighter – лихтер

26. on board a ship – на борту судна

27. marine insurance – морское страхование

28. insured – страхователь (лицо, отдающее

имущество на страхование)

29. insurer – страховщик (лицо, принимаю-

щее имущество на страхов-е)

30. insurance premium – страховая премия (стр.взнос)

II. Read and translate the text "Incoterms".

The new system of multimodal shipment in international trade is reflected in the International Commercial Terms (Incoterms 1980).

Ex Works

“Ex Works“ means that the seller’s only responsibility is to make the goods available at his premises (i.e. works or factory). In particular he is not responsible for loading the goods in the vehicle provided by the buyer, unless otherwise agreed. The buyer bears the full cost and risk involved in bringing the goods from there to the desired destination. This term thus represents the minimum obligation for the seller.

Free Carrier... (named point)

This term has been designed to meet the requirements of modern transport, particularly such «multimodal» transport as container or "roll on-roll off" traffic by trailers and ferries. It is based on the same main principle as FOB except that the seller fulfils his. obligations when he delivers the goods into the custody of the carrier at the named point.

For/Fot

FOR and FOT mean «Free on Rail» and "Free on Truck". These terms are synonymous since the word "Truck" relates to the railway wagons. They should only be used when the goods are to be carried by railway.

Fob Airport

FOB Airport is based on the same main principle as the ordinary FOB term. The seller fulfils his obligations by delivering the goods to the air carrier at the airport of departure. The risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods have been so delivered.

FAS

FAS means «Free Alongside Ship». Under this term the seller's obligations are fulfilled when the goods have been placed alongside the ship on the quay or in lighters. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment.

FOB

FOB means «Free on Board». The goods are placed on board the ship by the seller at a port of shipment named in the sales contract. The risk of loss of or damage to the goods is transferied from the seller to the buyer when the goods pass the ship's rail.

C&F

С & F means «Cost and Freight». The seller must pay the costs and freight necessary to bring the goods to the named destination, but the risk of loss оf or damage to the goods is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment.

GIF

GIF means «Cost, Insurance and Freight». This term is basically the same as С & F but with the addition that the seller has to procure marine insurance against the risk of loss of or damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.

Freight Carriage Paid To

Like C&F «Freight or Carriage paid to...» means that the seller pays the freight for the carriage of the goods to the named destination. However, the risk of loss of or damage to the goods, is transferred from the seller to the buyer when the goods have been de livered into the custody of the first carrier and not at the ship's rail. It can be used for all modes of trans port including multimodal operations and container or roll on-roll off traffic by trailers and ferries. When the Seller has to furnish a bill of lading, waybill or carrier's receipt, he duly fulfills this obligation by presenting such a document issued by the person with whom he has contracted for carriage to the named destination.

Freight Carriage and Insurance Paid To...

This term is the same as «Freight or Carriage Paid to...» but with the addition that the seller has to procure transport insurance against the risk of loss of or damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.

EX Ship

«EX Ship» means that the seller shall make the goods available to the buyer on board the ship at the destination named in the sales contract.

EX Quay

"EX Quay" means that the seller makes the goods available to the buyer on the quay (wharf) at the destination named in the sales contract.

Delivered at Frontier

"Delivered at Frontier" means that the seller's obligations are fulfilled when the goods have arrived at t he frontier — but before «the customs border" of the country named in the sales contract.

Delivered Duty Paid

While the term «Ex Works" signifies the seller's minimum obligation, the term «Delivered Duty Paid", when followed by words naming the buyer's premises denotes the other extreme — the seller's maximum obligation. The term «Delivered Duty Paid» may be used irrespective of the mode of transport.

Notes:

«Incoterms» — «Международные правила толко­вания коммерческих терминов». Разработаны Меж­дународной Торговой Палатой, Сборник «Incoterms 1980» содержит правила толкования 14 базисных условий поставки:

EXW – EX works – франко-завод, с завода

FRC – Free carrier... named point – свободно у перевозчика (в поименованном пункте)

FOR/FOT – Free on Rail/Truck – франко-вагон, свободно в вагоне или на платформе

FOA – FOB Airport – свободно в аэропорту

FAS – Free alongside ship – свободно вдоль борта судна

FOB – Free on Board – свободно на борту судна

CFR – С and F – Cost and Freight – КАФ-стоимость и фрахт

CIF – Cost, Insurance, Freight – СИФ-стоимость страхование, фрахт

Freight/Carriage paid to – фрахт/провозная плата оплачены до...

Freight/Carriage and Insurance paid to – фрахт/ провозная плата и страхование оплачены до...

Ex Ship – с судна

Ex Quay – с пристани

DAF – Delivered at Frontier – поставлено на границе

DDP – Delivered Duty Paid – поставлено с оплатой пошлины

1. Answer the questions:

1. What does the term «multimodal transport» mean?

2. What is regarded as the critical point now?

3. What document is issued in combined transport?

4. What mode of transport do you use for carriage of goods?

5. Where are critical points of responsibility under Incoterms?