INCOTERMS PROFESSIONAL ENGLISH IN USE FOR FINANCE

 

PROFESSIONAL ENGLISH IN USE FOR FINANCE 46. INCOTERMS

 

A Transport and additional costs Companies exporting or importing goods use standard arrangements called Incoterms – short for International Commercial Terms, established by the International Chamber of Commerce (ICC) – that state the responsibilities of the buyer and seller. They B The E and F terms There are 13 different Incoterms that can be divided into 4 different groups: an E Term (Departure), the F Terms (Free, Main Carriage Unpaid), the C Terms (Main Carriage Paid), and the D Terms (Delivered/ Arrival). Each group of terms adds more responsibilities to the seller and giver fewer to the buyer. C The C and D terms In the third group, the C terms, the seller arranges and pays for the carriage or transportation of goods, but not for the payment of customs duties and taxes. Transportation of goods is also known as freight. ·         In CFR – Cost and Freight (used for ocean freight) and CPT – Carriage Paid to …. (used for air freight and land freight), the buyer is responsible for insurance. ·         In the terms CIF – Cost, Insurance and Freight (used for ocean freight) and CIP – Carriage and Insurance Paid To … (used for air freight and land freight), the seller arranges and pays for insurance. EXERCISES 46.1 Label the diagram using the abbreviations of Incoterms. Look at A, B and C opposite to help you.

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