19/06/2023 FOREIGN TRADE OPERATIONS PHAN VŨ NGỌC LAN – MDE
International Business Administration Department lanpvn@huflit.edu.vn 1 INCOTERMS CHAPTER 2 PART 2 2 1 19/06/2023 IN THIS CHAPTER General information A brief history Purpose and Scope Incoterms®2020 Other versions of Incoterms 3
CLASSIFICATION (1) – BASED ON MODE OF TRANSPORT
B. Rules for sea and inland waterway transport FAS Free Alongside Ship FOB Free On Board CFR Cost and Freight CIF Cost Insurance and Freight 4 2 19/06/2023 FAS FREE ALONGSIDE SHIP
FAS (INSERT NAMED PORT OF SHIPMENT) (INCOTERMS 2020) 5 FAS FREE ALONGSIDE SHIP
FAS (INSERT NAMED PORT OF SHIPMENT) (INCOTERMS 2020) 6 3 19/06/2023 QUAY 8 FAS FREE ALONGSIDE SHIP
FAS (INSERT NAMED PORT OF SHIPMENT) (INCOTERMS 2020) . The goods placed on a quay alongside the vessel Ex. FAS Laemchabang port, Chonburi, Thailand QUAY (Incoterms 2020) 9 4 19/06/2023 BERTH & QUAY 10 BARGE [ C ] UK /B ːDƷ/ a long boat with a flat bottom, used forcarrying heav y objects on river s or canals 11 5 19/06/2023 FAS FREE ALONGSIDE SHIP
FAS (INSERT NAMED PORT OF SHIPMENT) (INCOTERMS 2020) The goods placed on a barge alongside the vessel BARGE 12 FAS FREE ALONGSIDE SHIP
FAS (INSERT NAMED PORT OF SHIPMENT) (INCOTERMS 2020) 13 6 19/06/2023 FAS FREE ALONGSIDE SHIP
FAS (INSERT NAMED PORT OF SHIPMENT) (INCOTERMS 2020)
point of risk transfer = point of cost transfer
= alongside the vessel at the port of shipment named placed on a quay placed on a barge alongside the vessel alongside the vessel
FAS (insert named port of shipment) (Incoterms 2020) 14 FAS FREE ALONGSIDE SHIP
FAS (INSERT NAMED PORT OF SHIPMENT) (INCOTERMS 2020)
The seller delivers when the goods are placed
alongside the vessel (e.g., on a quay or a barge)
nominated by the buyer at the named port of shipment
or when the Seller procures goods already so delivered.
The seller bears all risks of loss of or damage to the
goods until they have been placed alongside the vessel. 15 7 19/06/2023 FAS FREE ALONGSIDE SHIP
FAS (INSERT NAMED PORT OF SHIPMENT) (INCOTERMS 2020) - Seller’s obligations:
+ To provide the goods, necessary documents (commercial invoice, transport document),
+ To obtain any export license, conduct all necessary customs
formalities for the export of the goods,
+ To deliver the goods alongside the vessel (e.g., on a quay or a
barge) nominated by the buyer at the named port of shipment. 16 Obligations FAS 1
Checking + packaging + marking 2
Loading on means of transport at seller’s premises 3 Export clearance/formalities
FAS FREE 4 Delivery/transport document ALONGSIDE SHIP 5
Domestic precarriage (inland freight) from seller’s
premises to place/port of shipment
(INSERT NAMED 6 Loading on (main) carriage PORT OF 7
Contract of (main) carriage to named place/port of SHIPMENT) destination (INCOTERMS 8 Contract of insurance 2020) 9
Unloading at named place/port of destination 10 Import clearance/formalities 17 8 19/06/2023 FOB FREE ON BOARD
FOB (INSERT NAMED PORT OF SHIPMENT) (INCOTERMS 2020) 18 FOB FREE ON BOARD
FOB (INSERT NAMED PORT OF SHIPMENT) (INCOTERMS 2020) 19 9 19/06/2023 FOB FREE ON BOARD
FOB (INSERT NAMED PORT OF SHIPMENT) (INCOTERMS 2020)
point of risk transfer = point of cost transfer
= on board the vessel at the named port of shipment On board the vessel 20 FOB OR FAS? Example: HUFLIT exports mangos to USA. Question:
How to stipulate the Incoterms Point of risk transfer: rules in sales contract?
Case 1: On board the vessel at Cai
Case 2: Alongside the vessel at Mep port, Vung Tau, Vietnam
Cai Mep port, Vung Tau, Vietnam 21 10