国际贸易实务(英语)_帅建林_InternationalTradeTerms

Chapter 5 International Trade Terms Meaning of trade terms Role of international trade terms International trade usages A guide to Incoterms 2000 Meaning of international trade terms Definition: trade terms (price terms/delivery terms) are an important component of a unit price in international trade, standing for specific obligations of the buyer and the seller. They are abbreviations used to indicate the formation of the unit price and determine the responsibilities, expenses and risks borne by two parties as well as the time of the passing of the property in the goods. examples: US$750 per dozen CIF New York FFR1000 per M/T CFR Marseille Meaning of international trade terms Definition: trade terms (price terms/delivery terms) are an important component of a unit price in international trade, standing for specific obligations of the buyer and the seller. They are abbreviations used to indicate the formation of the unit price and determine the responsibilities, expenses and risks borne by two parties as well as the time of the passing of the property in the goods. examples: US$750 per dozen CIF New York FFR1000 per M/T CFR Marseille Role of international trade terms Naming the exact point at which the ownership of the merchandise is transferred from the seller to the buyer. Defining the responsibilities and expenses of both the seller and the buyer. Simplifying negotiations Saving time and cost Responsibilities and expenses Responsibilities include: Carrying out customs formalities for the goods Obtaining the import or export license Chartering a ship or booking shipping space Making insurance Asking for inspection Expenses comprise: Freight Loading and unloading expenses Insurance premium Warehouse charges Duties and taxes Miscellaneous expenses International trade usages Warsaw-Oxford Rules 1932 Revised American Foreign Trade Definitions 1941 International Rules for the Interpretation of Trade Terms Warsaw – Oxford Rules 1932 Warsaw Rules 1928 Contains 22 clauses concerning CIF contracts Warsaw Rules 1932 Based on Warsaw Rules 1928, contains 21 clauses concerning the nature, risks and expenses borne by both the seller and the buyer. Still in use. Revised American Foreign Trade Definitions 1941 Originally The US Export Quotations and Abbreviations 1919 Revised and renamed in 1941 Six trade terms: Ex Port of Origin, Ex Dock, Free on Board, Free Along Side, Cost & Freight, Cost, Insurance and Freight. Applicable in the USA, Canada and other countries in America. International Rules for the Interpretation of Trade Terms Also abbreviated as Incoterms Established by the International Chamber of Commerce (ICC) in 1936, revised in 1953, 1967, 1976, 1980, 1990 and 2000. Aimed at providing uniform rules for the interpretation of trade terms Characteristics of Incoterms Comparative Edition of the obligations of both the buyer and the seller The seller’s obligations Provision of goods in conformity with the contract Licenses, official documents and customs formalities Contract of carriage and insurance Delivery Transfer of risks Division of costs Notice to the buyer Proof of delivery, transport document or equivalent electronic message Checking-packaging-marking Other obligations The buyer’s obligations Payment for goods Licenses, official documents and customs formalities Contract of carriage and insurance Taking delivery Transfer of risks Division of costs Notice to the seller Proof of delivery, transport document or equivalent electronic message Inspection of goods Other obligations Structure of Incoterms 2000 Group E (departure): EXW Group F (main carriage unpaid) : FCA; FOB; FAS Group C (main carriage paid) : CFR; CIF; CPT; CIP Group D (arrival): DAF; DES; DEQ; DDU; DDP EXW: Ex Works 工厂交货 Ex works means that the seller fulfils his obligation to deliver when he has made the goods available at his premises (i.e. works, factory, warehouse, etc.) to the buyer. In particular, he is not responsible for loading the goods on the vehicle provided by the buyer or for clearing the goods for export. The buyer bears all costs and risks involved in taking the goods from the seller‘s premises to the desired destination. This term thus represents the minimum obligation for the seller. This term should not be used when the buyer cannot carry out directly or indirectly the export formalities. This term may be written in this way: US$ 100 per dozen ex works Ningbo This is also called the departure term. Under this term, the seller only covers the cost and liabilities of the manufacture or purchase of the goods while the buyer answers for all the other costs and liabilities. So in the quotations of price by the seller, this should be the lowest as under this term, the seller has the least liabilities and risks. This term is not only applicable to marine transportation of the goods, but also to all the other modes of transportations, including multi-modal transport (MT). Certainly, under EXW the seller should render assistance to the buyer upon request for clearance of customs, cargo inspection, export formalities and insurance, etc.. EXW: Ex Works (…named place) The seller’s obligations Provision of goods in conformity with the contract Cost of basic packing Notice to the buyer The buyer’s obligations Payment for goods Licenses, official documents and customs formalities Contract of carriage and insurance Taking delivery Proof of delivery, transport document or equivalent electronic message Two options: Ex works cleared for export Ex works uncleared for export F Terms F terms refer to FAS, FCA, FOB. They are different terms under which sellers or buyers fulfill their obligations in the delivery of goods. FAS is the short form of “Free Alongside Ship”, and FCA is the short form of “Free Carrier” while FOB is the short form of “Free On Board”. FCA Free Carrier 货交承运人 （……指定地点） Free Carrier means that the seller fulfils his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose within the place or range stipulated where the carrier shall take the goods into his charge. When, according to the commercial practice, the seller‘s assistance is required in making the contract with the carrier (such as in rail or air transport), the seller may act at the buyer’s risk and expense. This term may be used for any mode of transport, including multi-modal transport. Carrier means any person who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway or by a combination of such modes. If the buyer instructs the seller to deliver the cargo to a person, e.g. a freight forwarder who is not a Carrier, the seller is deemed to have fulfilled his obligation to deliver the goods when they are in the custody of that person. Under this term, the seller is to answer for the liabilities and charges from the purchase or manufacture of the goods, the freight from the production site to the site of delivery, export customs clearance and export commodity inspection. All the other charges and liabilities are to be born by the buyers. FCA: Free Carrier (…named place) The seller’s obligations Provision of goods in conformity with the contract Licenses, official documents and customs formalities Clearing for export Delivery to the carrier Proof of delivery, transport document or equivalent electronic message Risks and costs before delivering goods to the carrier The buyer’s obligations Payment for goods Contract of carriage and insurance Taking delivery Notice to the seller Risks and costs after the seller’s delivering goods to the carrier FAS --- Free Alongside Ship 船边交货（……指定装运港） Free Alongside Ship means that the seller fulfils his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment. This means that the buyer has to bear all costs and risks of the loss or damage to their goods from that moment. The FAS term requires the SELLER (INCOTERMS2000) , not the buyer (INCOTERMS1990 requires the buyer) to clear the goods for export. This term can only be used for sea or inland waterway transport. Under this term, the seller answers for the cost and liabilities arising from the production or purchase of the goods and the carriage of the goods to the loading port or, in land delivery, to the delivery place at the frontier. Under FAS, the seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for placing the goods at the disposal of the buyer. The seller must provide at his own expense packaging that is required for the transport of the goods, to the extent that the circumstances relating to the transport (modalities, destination) are made known to the seller before the sales contract is concluded. Packaging is to be marked appropriately. FAS: Free Alongside Ship (…named port of shipment) The seller’s obligations Provision of goods in conformity with the contract Clearing the goods for export Delivery Proof of delivery Costs and risks before the goods are placed alongside the vessel The buyer’s obligations Payment for goods Contract of carriage and insurance Taking delivery Transport document or equivalent electronic message Costs and risks after the goods are place alongside the vessel Notice to the seller FOB Free on Board 船上交货 （……指定装运港） Free on Board means that the seller fulfils his obligation to deliver when the goods have passed over the ship‘s rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. This term can only be used for sea or inland waterway transport. When the ship‘s rail serves no practical purpose, such as in the case of roll-on/roll-off or container traffic, the FCA term is more appropriate. Under this term, the seller has roughly the same liabilities as in the sales under FCA. The difference between FCA and FOB is that FOB is applicable only to marine transportation while FCA can be applied to all modes of transportations. The Particular Points about the Sales under FOB: 1) According to INCOTERMS 2000 (International Chamber of Commerce Terms), the seller fulfils his obligations to deliver when the goods have passed over the ship‘s rail at the named port of shipment, but it is often the practice that the seller sees the goods are delivered on board. Under such cases, the ship’s rail can be taken as the point where the seller and buyer divide their risks. 2) Under FOB, it is the buyer who arranges the ship for the shipment of the goods. So the parties must try to ensure that the goods and the boat arrive at the same loading port at the same time. The loss caused by the untimely arrival or delay of the ship should be compensated by the buyer while the loss arising from the untimely arrival or delay of the goods will be covered by the seller. Under FOB, the seller sometimes also makes the charter party. But it is on the buyer‘s behalf and the cost as well as the risk should be covered and borne by the buyer 3) As the loading charges are concerned, they are usually covered by the buyer as the freight charged by the liners includes the loading, trimming, stowing, and the unloading charges. But under voyage charter party, the parties need to clarify in their contract who should cover the loading, trimming, or stowing charges. This is reflected in the variations of FOB: FOB liner terms班轮条件: The loading as well as trimming or stowing charges will be covered by the buyer/carrier. FOB under tackle钓钩下交货: The seller fulfils his delivery when it has placed the goods under the tackle. FOB stowed理舱费在内: The seller will bear the cost of stowing as well as loading. FOB trimmed平舱费在内: The seller will bear the cost of trimming as well as loading. FOBST: FOB Stowed and Trimmed FOB: Free on Board (…named port of shipment) The seller’s obligations Provision of goods in conformity with the contract Export licenses, official documents and customs formalities Delivery Proof of delivery Costs and risks before the goods’ passing the ship’s rail Notice to the buyer The buyer’s obligations Payment for goods Import licenses, official documents and customs formalities Contract of carriage and insurance Taking delivery Transport document or equivalent electronic message Risks and costs after the goods’ passing the ship’s rail Different Interpretation of FOB Revised American Foreign Trade Definitions 1941 gives 6 forms of FOB. Under the first three forms, the seller delivers goods on the inland conveyance at the named place in the export country. Under the fourth type, delivery is made on the inland conveyance at the place of export. The fifth type requires delivery on board the vessel at the named port of shipment. With the sixth type, the seller is to deliver the goods at the named place within the import country. caution: confusion may arise when applying the fourth type and the fifth type as the place of delivery may appear to be the same. For example, FOB San Francisco may refer to delivery either on inland conveyance within the city or on board the vessel at the port of San Francisco. To avoid confusion, a word “Vessel” should be added between FOB and the name of the port (FOB Vessel San Francisco) if delivery on board the vessel is intended. C Terms C Terms refer to CFR, CIF, CPT, and CIP. Under the C terms, the seller will cover the cost arising from the main carriage. CFR Cost and Freight 成本加运费 （……指定目的港） Cost and Freight means that the seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship‘s rail in the port of shipment. The CFR term requires the seller to clear the goods for export. This term can only be used for sea and inland waterway transport. When the ship‘s rail serves no practical purpose, CPT term is more appropriate to use. Under this term, the buyer will effect the insurance. The seller covers the cost of carriage but does not bear the risks arising from the carriage of the goods. Some additional points about CFR: 1) Under this term, the seller arranges the charter party or rent the ship space. According to INCOTERMS2000, he is obliged to contract on usual terms at his own expense for the carriage of the goods to the named port of destination by the usual route in a seagoing vessel (or, in inland waterway transport, an inland waterway vessel as appropriate) of the type normally used for the transport of the goods of the contract description. The buyer is not entitled to demand the seller to use a special boat, though such requirements can be met if the seller would grant his wish. 2) The discharge charges: like the business under FOB, if the cargoes are carried by a liner, the discharge charges will be included in the freight and be covered by the seller. For voyage charter carriage, the parties should negotiate to determine who should bear the unloading charges. This will result in the variations of CFR. The terms under which the seller will bear the unloading charges: CFR liner terms 班轮条件 CFR ex tackle钓钩下交货 CFR landed卸至码头 4) The term under which the unloading charges will be born by the buyer: CFR ex ship‘s hold 船底交货 5) The seller under CFR must give the buyer sufficient notice that the goods have been delivered on board the vessel as well as any other notice required in order to allow the buyer to take measures which are normally necessary to enable him to receive the goods. 6) INCOTERMS2000 states that under CFR, the seller should provide the buyer, upon request, with the necessary information for procuring insurance. This means that the seller is not obliged to notify the buyer of the shipment for the insurance of the goods. But some countries stipulate that the seller should notify the buyer of the shipment for the buyer to effect insurance, or the seller will bear the risks. Thus, to avoid disputes, the seller should give timely notice to the buyer to effect insurance. CFR: Cost and Freight (…named port of destination) The seller’s obligations Provision of goods in conformity with the contract Export licenses, official documents and customs formalities Contract of carriage Delivery Risks before the goods’ passing the rail of the vessel Notice to the buyer Proof of delivery, transport document or equivalent electronic message The buyer’s obligations Payment for goods Contract of insurance Import licenses, official documents and customs formalities Taking delivery Risks and additional costs after the goods’ passing the rail of the vessel CIF Cost, Insurance, and Freight 保险成本加运费 （……指定目的港） CIF means that the seller has the same obligations as under CFR but with the addition that he has to procure marine insurance against the buyer‘s risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIF term the seller is only required to obtain insurance on minimum coverage. The CIF term requires the seller to clear the goods for export. This term can only be used for sea and inland waterway transport. When the ship’s rail serves no practical purposes such as in the case of roll-on/roll-off or container traffic, the CIF term is more appropriate to use. Some additional points about CIF: 1) Symbolic delivery Under CIF, the seller is obliged to effect insurance, but he does not bear the risk of loss or damage to the goods during transit. Once he has delivered the goods and acquired the necessary documents, he is entitled to the payments of the goods even if the cargoes are lost. This is called symbolic delivery or documentary transaction. And if the goods are lost during transit, the buyer, instead of the seller, is to ask the insurance company to cover the losses, and usually the seller will render the necessary support. 2) Insurance cover The insurance should be contracted with underwriters/insurer or an insurance company of good reputation in accordance with the minimum cover of Institute Cargo Clauses,ICC (Institute of London Underwriters) or China Insurance Clauses. CIC When required by the buyer, the seller shall provide, at the buyer‘s expense, war, strikes, riots, and civil commotion risk insurances if procurable. The minimum insurance shall cover the price provided in the contract plus ten percent and shall be provided in the currency of the contract. In practice, when two trading partners have reached an agreement under CIF, they usually stipulate in their contract what risks to cover and how much the insured amount is, so as to clarify the liabilities of the parties. 3) CIF variants CIF Liner Terms班轮条件: The seller or carrier pays for the charges for unloading. CIF Landed卸致码头: The seller covers the charges for unloading to the port of destination. CIF Ex Tackle吊钩下交接: The seller covers the charges for unloading from the ship’s hold to the wharf or lighter. The buyer covers the charges of the lighter and the charges for unloading from the lighter to the wharf. CIF Ex Ship’s Hold舱底交接: The buyer covers the charges for unloading from the ship’s hold to the wharf. CIF: Cost, Insurance and Freight (…named port of destination) The seller’s obligations Provision of goods in conformity with the contract Export licenses, official documents and customs formalities Contract of carriage and insurance Delivery Risks before the goods’ passing the ship’s rail Notice to the buyer Proof of delivery, transport document or equivalent electronic message The buyer’s obligations Payment for goods Import licenses, official documents and customs formalities Taking delivery Risks after the goods’ passing the ship’s rail CPT Carriage Paid to ( ... named place of destination ) 运费付至（……指定目的地） Carriage Paid To ... means that the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. Carrier means any person who, in a contract of carriage, undertakes to perform or to procure the performance of carriage, by rail, road, sea, air, inland waterway or by a combination of such modes. If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export. This term may be used for any mode of transport including multi-modal transport. Under this term, the seller has the same liabilities as under CIF, but this term is applicable not only to sea transportation, but also to other modes of transportation. CPT: Carriage Paid to (…named place of destination) The seller’s obligations Provision of goods in conformity with the contract Export licenses, official documents and customs formalities Contract of carriage Delivery Risks before delivering the goods to the carrier/first carrier Notice to the buyer Proof of delivery, transport document or equivalent electronic message The buyer’s obligations Payment for goods Import licenses, official documents and customs formalities Taking delivery Risks after the goods’ delivery to the carrier/first carrier Notice to the seller CIP Carriage Insurance Paid to 运费保费付至 (……指定目的地) This is the same as CPT, but with insurance paid by the seller. It is specially applicable to multi-modal deliveries. As a matter of fact, FCA, CPT, and CIP came into use as the result of the availability of multi-modal deliveries in international trade starting from 1970’. Nowadays, the services of MTP (multi-modal transport operator) are being widely used by traders in Western countries as a result of the increasing use of containers in the movement of cargoes between different places in the world. CIP: Carriage and Insurance Paid to (…named place of destination) The seller’s obligations Provision of goods in conformity with the contract Export licenses, official documents and customs formalities Contract of carriage and insurance Delivery Risks before delivering the goods to the carrier/first carrier Notice to the buyer Proof of delivery, transport document or equivalent electronic message The buyer’s obligations Payment for goods Import licenses, official documents and customs formalities Taking delivery Risks after the goods’ delivery to the carrier/first carrier Notice to the seller D Terms There are five D terms: DAF, DES, DEQ, DDU and DDP. D terms are different from C Terms in that under D terms, the seller is responsible for the arrival of the goods at the agreed place or point of destination. The seller must bear all the risks and costs in bringing the cargoes thereto. Hence, contracts under D terms mean arrival contracts while contracts under C Terms mean shipment contracts DAF Delivered at Frontier (... named place) 边境交货（……指定地点） DAF means that the seller fulfils his obligation to deliver when the goods have been made available, cleared for export, at the named point and place at the frontier, but before the customs border of the adjoining country. The term “frontier” may be used for any frontier including that of the country of export and the frontier of a third country. Therefore, it is of vital importance that the frontier in question should be defined precisely by always naming the point and place in the term. The term is primarily intended to be used when goods are to be carried by rail or road, but it may be used for any other mode of transport. If the named place is located in a port of the importer’s country, INCOTERMS2000 suggests that DES or DEQ be adopted. Under DAF the buyer must obtain at his own risk and expense any import license or other official authorization and carry out all customs formalities at the named point of delivery at the frontier, or elsewhere for the importation of the goods and, where necessary, for their subsequent transport. Two Issues about DAF When there are more than one place for delivery on the border, it is important that the place of delivery be defined precisely in order to avoid any dispute. If there is not such a place agreed by the two parties, the seller has the right to choose one place that he considers most appropriate for delivery Under DAF, risks pass from the seller to the buyer only when the goods are delivered to the buyer at the named place on the frontier. Notice the difference between DAF and CPT. DAF: Delivered at Frontier (…named place) The seller’s obligations Provision of goods in conformity with the contract Export licenses, official documents and customs formalities Contract of carriage Delivery Risks and costs before the goods’ delivery to the named place at the frontier Notice to the buyer Proof of delivery, transport document or equivalent electronic message The buyer’s obligations Payment for goods Import licenses, official documents and customs formalities Taking delivery Risks and costs after the goods’ delivery to the named place at the frontier DES Delivered Ex Ship (...named port of destination) 船上交货（……指定目的港） DES means that the seller fulfils his obligation to deliver when the goods have been made available to the buyer on board the ship uncleared for import at the named port of destination名副其实的到岸价）. The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination. This term can only be used for sea or inland waterway transport. Under DES the seller must contract at his expense for the carriage of the goods by a usual route and in a customary manner to the named place at the named port of destination. If a point is not agreed or is not determined by practice, the seller may select the point at the named port of destination which best suits his purpose. DES: Delivered Ex Ship (…named port of destination) The seller’s obligations Provision of goods in conformity with the contract Export licenses, official documents and customs formalities Contract of carriage Delivery Risks and costs before the goods’ delivery to the buyer’s disposal on board the ship Notice to the buyer Proof of delivery, transport document or equivalent electronic message The buyer’s obligations Payment for goods Import licenses, official documents and customs formalities Taking delivery Risks and costs after the goods’ delivery to the buyer’s disposal on board the ship DEQ Delivered Ex Quay (…named port of destination) 码头交货（……指定目的港） DEQ means that the seller fulfils his obligation to deliver when he has made the goods available to the buyer on the quay (wharf) at the named port of destination. AccordingINCOTERMS1990, the seller has to bear all risks and costs including duties, taxes and other charges of delivering the goods thereto. But INCOTERMS2000 stipulates it is the buyer, NOT the SELLER, that clears the goods for importation,namely, the buyer has to pay import duties,obtain an import license and covers all the charges and the costs resulting from importation. If the parties wish the buyer to clear the goods for importation and pay the duty the words “duty unpaid” should be used instead of “duty paid”. If the parties wish to exclude from the seller‘s obligations some of the costs payable upon importation of the goods (such as value added tax (VAT)), this should be made clear by adding words to this effect: “Delivered ex quay, VAT unpaid (...named port of destination)”. This term can only be used for sea or inland waterway transport. Under DEQ the seller must provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity that may be required by the contract. DEQ: Delivered Ex Quay (…named port of destination) The seller’s obligations Provision of goods in conformity with the contract Export licenses, official documents and customs formalities Contract of carriage Delivery Risks and costs before the goods’ delivery to the buyer’s disposal on the quay Notice to the buyer Proof of delivery, transport document or equivalent electronic message The buyer’s obligations Payment for goods Import licenses, official documents and customs formalities Taking delivery Risks and costs after the goods’ delivery to the buyer’s disposal on the quay DDU Delivered Duty Unpaid ( ... named place of destination ) 未完税交货（……指定目的地） DDU means that the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties, taxes and other official charges payable upon importation) as well as the costs and risks of carrying out customs formalities. The buyer has to pay any additional costs and to bear any risks caused by his failure to clear the goods for import in time. If the parties wish the seller to carry out customs formalities and bear the costs and risks resulting there from, this has to be made clear by adding words to this effect. If the parties wish to include in the seller‘s obligations some of the costs payable upon importation of the goods (such as value added tax (VAT)), this should be made clear by adding words to this effect: “Delivered duty paid, VAT paid, (... named place of destination)”. This term may be used irrespective of the mode of transport. DDU: Delivered Duty Unpaid (…named place of destination) The seller’s obligations Provision of goods in conformity with the contract Export licenses, official documents and customs formalities Contract of carriage Delivery Risks and costs before the goods’ delivery to the buyer’s disposal at the named place of destination Notice to the buyer Proof of delivery, transport document or equivalent electronic message The buyer’s obligations Payment for goods Import licenses, official documents and customs formalities and duties Taking delivery Risks and costs after the goods’ delivery to the buyer’s disposal at the named place of destination DDP Delivered Duty Paid ( ... named place of destination ) 完税后交货（……指定目的地） DDP means that the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation. While the EXW term represents the minimum obligation for the seller, DDP represents the maximum obligation. This term should not be used if the seller is unable directly or indirectly to obtain the import license. If the parties wish the buyer to clear the goods for importation and to pay the duty, the term DDU should be used. If the parties wish to exclude from the seller‘s obligations some of the costs payable upon importation of the goods (such as VAT), this should be made clear by adding words to this effect: “Delivered duty paid, VAT unpaid (... named place of destination)”. This term can be used irrespective of the mode of transport. DDP: Delivered Duty Paid (…named place of destination) The seller’s obligations Provision of goods in conformity with the contract Export and import licenses, official documents and customs formalities and duties Contract of carriage Delivery Risks and costs before the goods’ delivery to the buyer’s disposal at the named place of destination Notice to the buyer Proof of delivery, transport document or equivalent electronic message The buyer’s obligations Payment for goods Taking delivery Risks and costs after the goods’ delivery to the buyer’s disposal at the named place of destination DDP and DDU are applicable to all modes of transportation while for DES and DEQ, the place of delivery is at either on board of the ship or at the quay or wharf. Modes of transport: DAF: mainly by rail or highway, but also by other means of transport. DES and DEQ: by water DDU and DDP: all modes of transport