TheIncoterms2010rulesExWorks(EXW)Canbeusedforanytransportmode,orwherethereismorethanonetransportmodeThisruleplacesminimumresponsibilityontheseller,whomerelyhastomakethegoodsavailable,suitablypackaged,atthespecifiedplace,usuallytheseller’sfactoryordepot.Thebuyerisresponsibleforloadingthegoodsontoavehicle(eventhoughthesellermaybebetterplacedtodothis);forallexportprocedures;foronwardtransportandforallcostsarisingaftercollectionofthegoods.Inmanycross-bordertransactions,thisrulecanpresentpracticaldifficulties.Specifically,theexportermaystillneedtobeinvolvedinexportreportingandclearanceprocesses,andcannotrealisticallyleavethesetothebuyer.ConsiderFreeCarrier(seller’spremises)instead.Otherthingstowatchfor.Althoughthesellerisnotobligedtoloadthegoods,ifthesellerdoesso,thisisatthebuyer’srisk!FreeCarrier(FCA)Canbeusedforanytransportmode,orwherethereismorethanonetransportmode.Averyflexiblerulethatissuitableforallsituationswherethebuyerarrangesthemaincarriage1Forexample:Sellerarrangespre-carriagefromseller’sdepottothenamedplace,whichcanbeaterminalortransporthub,forwarder’swarehouseetc.Deliveryandtransferofrisktakesplacewhenthetruckorothervehiclearrivesatthisplace,readyforunloading–inotherwords,thecarrierisresponsibleforunloadingthegoods.(Ifthereismorethanonecarrier,thenrisktransfersondeliverytothefirstcarrier.)Wherethenamedplaceistheseller’spremises,thenthesellerisresponsibleforloadingthegoodsontothetrucketc.NBthisisanimportantdifferencefromExWorksEXWInallcases,thesellerisresponsibleforexportclearance;thebuyerassumesallrisksandcostsafterthegoodshavebeendeliveredatthenamedplace.FCAistheruleofchoiceforcontainerisedgoodswherethebuyerarrangesforthemaincarriage.CarriagePaidTo(CPT)Canbeusedforanytransportmode,orwherethereismorethanonetransportmode.2Thesellerisresponsibleforarrangingcarriagetothenamedplace,butnotforinsuringthegoodstothenamedplace.Howeverdeliveryofthegoodstakesplace,andrisktransfersfromsellertobuyer,atthepointwherethegoodsaretakeninchargebyacarrier–seedelivery.Thingstowatchfor.TerminalHandlingCharges(THC)arechargesmadebytheterminaloperator.Thesechargesmayormaynotbeincludedbythecarrierintheirfreightrates–thebuyershouldenquirewhethertheCPTpriceincludesTHC,soastoavoidsurprises.Thebuyermaywishtoarrangeinsurancecoverforthemaincarriage,startingfromthepointwherethegoodsaretakeninchargebythecarrier–NBthiswillnotbetheplacereferredtointheIncotermsrule,butwillbespecifiedelsewherewithinthecommercialagreementSeealso“CarriageandInsurancePaidToCIP”CarriageandInsurancePaidTo(CIP)Canbeusedforanytransportmode,orwherethereismorethanonetransportmode.Thesellerisresponsibleforarrangingcarriagetothenamedplace,andalsoforinsuringthegoods.3AswithCPT,deliveryofthegoodstakesplace,andrisktransfersfromsellertobuyer,atthepointwherethegoodsaretakeninchargebyacarrier–seedelivery.Thingstowatchfor.TerminalHandlingCharges(THC)arechargesmadebytheterminaloperator.Thesechargesmayormaynotbeincludedbythecarrierintheirfreightrates–thebuyershouldenquirewhethertheCPTpriceincludesTHC,soastoavoidsurprises.Althoughthesellerisobligedtoarrangeforinsuranceforthejourney,theruleonlyrequiresaminimumlevelofcover,whichmaybecommerciallyunrealistic.ThereforethelevelofcovermayneedtobeaddressedelsewhereinthecommercialagreementSeealso“CarriagePaidToCPT”DeliveredatTerminal(DAT)Canbeusedforanytransportmode,orwherethereismorethanonetransportmode.Thesellerisresponsibleforarrangingcarriageandfordeliveringthegoods,unloadedfromthearrivingconveyance,atthenamedplace.Risktransfersfromsellertobuyerwhenthegoodshavebeenunloaded.4‘Terminal’canbeanyplace–aquay,containeryard,warehouseortransporthub.Thebuyerisresponsibleforimportclearanceandanyapplicablelocaltaxesorimportduties.Thingstowatchfor:Theplacefordeliveryshouldbespecifiedaspreciselyaspossible,asmanyportsandtransporthubsareverylarge.Ausefulrule,wellsuitedtocontaineroperationswherethesellerbearsresponsibilityforthemaincarriage.DeliveredatPlace(DAP)Canbeusedforanytransportmode,orwherethereismorethanonetransportmode.Thesellerisresponsibleforarrangingcarriageandfordeliveringthegoods,readyforunloadingfromthearrivingconveyance,atthenamedplace.(AnimportantdifferencefromDeliveredAtTerminalDAT,wherethesellerisresponsibleforunloading.)Risktransfersfromsellertobuyerwhenthegoodsareavailableforunloading;sounloadingisatthebuyer’srisk.Thebuyerisresponsibleforimportclearanceandanyapplicablelocaltaxesorimportduties.ThisrulecanoftenbeusedtoreplacetheIncoterms2000rulesDeliveredAtFrontier(DAF),DeliveredExShip(DES)andDeliveredDutyUnpaid(DDU)5DeliveredDutyPaid(DDP)Canbeusedforanytransportmode,orwherethereismorethanonetransportmode.Thesellerisresponsibleforarrangingcarriageanddeliveringthegoodsatthenamedplace,clearedforimportandallapplicabletaxesanddutiespaid(e.g.VAT,GST)Risktransfersfromsellertobuyerwhenthegoodsaremadeavailabletothebuyer,readyforunloadingfromthearrivingconveyanceThisruleplacesthemaximumobligationontheseller,andistheonlyrulethatrequiresthesellertotakeresponsibilityforimportclearanceandpaymentoftaxesand/orimportduty.Theselastrequireme