The Professional Standard for International Trade 1 Trade

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The Professional Standard for International Trade 1 Trade Technologies, . All rights reserved. ©

The Professional Standard for International Trade 1 Trade Technologies, . All rights reserved. © 2010

Incoterms® 2010 © 2010 Trade Technologies, Inc. All rights reserved. 2

Incoterms® 2010 © 2010 Trade Technologies, Inc. All rights reserved. 2

INCOTERMS® 2010 - Who set the rules? International Chamber of Commerce (ICC) ØFounded 1919

INCOTERMS® 2010 - Who set the rules? International Chamber of Commerce (ICC) ØFounded 1919 in Paris ØInternational representatives from over 120 countries ØConforms with WTO, U. N. , G 20 3 © 2010 Trade Technologies, Inc. All rights reserved.

INCOTERMS® 2010 - What are they? Incoterms (International Commercial Terms) Ø 3 Letter trade

INCOTERMS® 2010 - What are they? Incoterms (International Commercial Terms) Ø 3 Letter trade terms that relate to common sales practices: • Standardizes rules • Defines responsibility • Outlines costs included in each term • Reveals gaps in all areas of concern • Determines specific delivery point © 2010 Trade Technologies, Inc. All rights reserved. EXW FCA FOB FAS CFR CIF CPT CIP DAT DAP DDP

Incoterms® 2010 – The Basics Considerations • How will the goods be shipped? •

Incoterms® 2010 – The Basics Considerations • How will the goods be shipped? • Who will pay the costs of the transportation and Insurance? • Have all the necessary costs been included in the final pricing? • What risks are involved with the terms that are being used? • What is the exact location point where risk transfers from seller to buyer? 6 © 2010 Trade Technologies, Inc. All rights reserved.

Common Misconceptions. . . Incoterms® 2010 Ø Incoterms do not: o Transfer legal title

Common Misconceptions. . . Incoterms® 2010 Ø Incoterms do not: o Transfer legal title or ownership of goods. Transfer, title, or ownership process begins with exchange of documents • Exchange of money for documents + • Delivery of goods per Incoterms® = • 7 Title Transfer © 2010 Trade Technologies, Inc. All rights reserved.