INCOTERMS - International Commercial Terms
- A set of international rules
- Interpretation of commonly used trade terms
- Outline cost, responsibility and risk
- Deal with buyers and sellers under sales contract
Ex-works (EXW) - P.S. 在仓亦当已卖出
- Sellers deliver when they place goods at disposal of buyers at sellers' premises or another named place
- Not cleared for export
- Not loaded on any collecting vehicle
- Minimum obligation for sellers
Free on Board (FOB) P.S.: 上船后seller's risk past
- Sellers deliver when goods pass ship's rail at named port of shipment
- Sellers clear goods for export
- Buyers bear all costs and risks of loss of or damage from that point
- Only for sea or inland waterway transport
- Marked "Freight Collect" on Bills of Lading
Free Carrier (FCA) P.S.: 同FOB，except是其他类型交通工具
- Sellers deliver goods to carrier nominated by buyers at named place
- Sellers clear for export
- Irrespective of mode of transport including multi modal transport
Cost and Freight (CFR/CPT) P.S.: 与上面的不同在亦运输费seller承当
- Sellers deliver when goods pass ship's rail in port of shipment (CFR) or to named carrier (CPT)
- Sellers clear goods for export
- Sellers pay costs and freight necessary to bring goods to named port of destination
- Risk of loss of or damage to goods are transferred from sellers to buyers after time of delivery
Cost, Insurance and Freight (CIF / CIP) P.S.: 与上一项不同在保险费等费用亦由seller承当
- Sellers deliver when goods pass ship's rail in port of shipment (CIF) or delivered to named carrier (CIP)
- Sellers pay costs and freight necessary to bring goods to named port of destination
- Risk of loss of or damage to goods are transferred from sellers to buyers after time of delivery
- Sellers have to procure marine insurance against buyer's risk of loss of or damage to goods during carriage
- Marked "Freight Prepaid" on Bills of Lading
Revenue recognition for sales of goods (HKAS 18)
- Transfer to buyer significant risks & rewards of ownership of goods
- Retain neither continuing managerial involvement to degree usually associated with ownership nor effective control over goods sold
- Amount of revenue can be measured reliably
- Probable that economic benefits associated with transaction will flow to entity
- Cost incurred or to be incurred in respect of transaction can be measured reliably
