Incoterms 2010 International Trade for Export & Impor

The International Chamber of Commerce (ICC ) has published revisions to its International Commercial Terms, also known as INCOTERMS®, that take effect on January 1, 2011.

The revised rules, designated "INCOTERMS 2010", contain a series of changes, such as a reduction in the number of terms to 11 from 13. The DAF, DES, DEQ, and DDU designations have been eliminated, while two new terms, Deliv ered at Terminal (DAT) and Delivered at Place (DAP), have been added. INCOTERMS 2010 also attempt to better take into account the roles cargo security and electronic data interchange now play in international trade

The two main categories of Incoterms® 2010 are now organized by modes of transport. Used in international as well as in domestic contracts for the first time, the new groups aim to simplify the drafting of contracts and help avoid misunderstandings by clearly stipulating the obligations of buyers and sellers.

Group 1. Incoterms® that apply to any mode of transport are:

• EXW Ex Works
• FCA Free Carrier
• CPT Carriage Paid To
• CIP Carriage and Insurance Paid To
• DAT Delivered at Terminal
• DAP Delivered at Place
• DDP Delivered Duty Paid

Group 2. Incoterms® that apply to sea and inland waterway transport only:

• FAS Free Alongside Ship
• FOB Free on Board
• CFR Cost and Freight
• CIF Cost, Insurance, and Freight

Group 1.

EXW - EX WORKS (... named place of delivery)

Means that the seller delivers when he places the goods at the disposal of the buyer at the seller’s premises  or another named place (i.e. works, factory, warehouse, etc.) not cleared for export and not loaded on any  collecting vehicle. This term thus represents the minimum obligation for the seller, and the buyer has to bear all costs and risks involved in taking the goods from the seller’s premises.

FCA - FREE CARRIER (... named place of delivery)

Means that the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. The buyer must contract at his own expense the carriage of the goods from the named place.

CPT - CARRIAGE PAID TO (... named place of destination)

Means that the seller delivers the goods to the carrier nominated by him but the seller must also pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any other costs occurring after the goods have been so delivered. If multiple 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.

CIP - CARRIAGE AND INSURANCE PAID TO (... named place of destination)

Means that the seller delivers the goods to the carrier nominated by him but the seller must also pay the cost of carriage necessary to bring the goods to the named place of destination. This means that the buyer bears all risks and any additional costs occurring after the goods have been so delivered. However, in CIP the seller also has to procure insurance against the buyer’s risk of loss of or damage to the goods during the carriage. Consequently, the seller contracts for insurance and pays the insurance premium. If multiple carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The CIP term requires the seller to clear the goods for export.

DAT - DELIVERED AT TERMINAL (... named terminal at port or place of destination)

Means that the seller delivers the goods to the named terminal at the named port or place of destination, unloaded from the delivering carrier. “Terminal” may have multiple meanings and thus should be specified as clearly as possible. The DAT term requires the seller to clear the goods for export and the buyer to clear the goods for import. If the seller is also responsible to arrange transport beyond the terminal, then the DAP or DDP term should be used.

DAP - DELIVERED AT PLACE (... named place of destination)

Means that the seller’s obligation ends when the goods are delivered to the disposal of the buyer at the named destination place. The DAP term specifies the buyer bears the risk and is responsible for unloading. The DAP term requires the seller to clear the goods for export and the buyer to clear the goods for import. If the seller is to be responsible for import clearance, then the DDP term should be used.

DDP - DELIVERED DUTY PAID (... named place)

Means that the seller delivers the goods to the buyer, cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear all the costs and risks involved in bringing the goods thereto including, where applicable, any “duty” (which term includes the responsibility for the risk of the carrying out of customs formalities and the payment of formali- ties, Customs duties, taxes and other charges) for import in the country of destination. If the parties wish the buyer to bear all risks and costs of the import, the DAP term should be used.

Group 2.

FAS - FREE ALONGSIDE SHIP (... named port of shipment)

Means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the seller to clear the goods for export. This term is valid for vessel shipments only.

FOB - FREE ON BOARD (... named port of shipment)

Means that the seller delivers when the goods are loaded on board a vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for ex- port. This term is valid for vessel shipments only. If the cargo is delivered to the carrier by the seller before the goods are loaded on board the vessel, then the FCA term should be used.

CFR - COST AND FREIGHT (... named port of destination)

Means that the seller delivers when the goods are loaded on board a vessel at the named port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination BUT the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer when the goods are loaded onto the vessel. The CFR term requires the seller to clear the goods for export. This term is valid for vessel shipments only. If the cargo is delivered to the carrier by the seller before the goods are loaded on board the vessel, then the CPT term should be used.

CIF - COST INSURANCE AND FREIGHT (... named port of destination)

Means that the seller delivers when the goods are loaded on board a vessel at the named port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination BUT the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer when the goods are loaded onto the vessel. The CIF term requires the seller to clear the goods for export and to provide minimum insurance cover. This term is valid for vessel shipments only. If the cargo is delivered to the carrier by the seller before the goods are loaded on board the vessel, then the CIP term should be used.

N o t e s :

• Incoterms must always be accompanied by a “named place” including city, province/state and country. The International Chamber of Commerce updates Incoterms every ten years, most recently in 2010. Because the implications and interpretations differ between publications, the year of the revised publication should also be stated. Example of correct Inco statement: “FOB Surabaya, Jawa Timur, INDONESIA, Incoterms 2010.”
• Incoterms identify risk and cost to the seller and buyer, but do not identify title transference.
• All reference to the cost of “Customs clearance” includes not only duty and /or other government levy but also the administrative cost associated with fulfilling that process.
• The exporter and/or importer may or may not be the seller or buyer. Exporter and importer status are specifically governed by the particular laws of the country of export and country of import.

Singapore Company Has Developed A Container Tracking Solution

This study explores the tracking and security of freight (“cargo”) containers as they are transported across international trade routes, including maritime environments (e.g. ports, oceans, etc.). The report covers maritime asset management solutions that are enabled with a family of integrated wireless technologies to provide real-time, global tracking, security and communications features. The solutions are largely segmented by either container tracking or container security functionality, and primarily targeted at government and commercial markets.

A Singapore-based company has developed a container tracking solution, with the support of the Maritime and Port Authority of Singapore’s (MPA) Maritime Innovation and Technology Fund (MINT), called G-Track and designed to improve the visibility and security of high-value perishable cargo requiring cold chain logistics.

Complete with GPS, GPRS, GSM, Zig-bee modules, a RFID reader and temperature sensor, the device assures security as well as proper product temperature throughout the entire transport chain, from packing to delivery.

“With the Global-I inter-modal solution, carriers and logistics providers can offer value-added services to shippers and consignees”.

“These providers now have the technical ability to link with shipping lines for real-time status, generate web-based export documentation, and provide electronic tracking. Extending beyond the ship’s platform, the Global-I solution can automate the necessary but previously manual tasks of capturing data as well as tracking and locating containers in terminals, which are spread across large acres of land.”

The container security market is still in its infancy, but various governments worldwide have been driving for better monitoring, including a full end-to-end inter-modal container tracking solution, seamlessly over land and at sea. Containers need to be secured to prevent theft and pilferage, and also to prevent them from being used by terrorists to transport weapons of mass destruction.

International Shipping and Moving

When making an international move to a brand new place where everything is sure to be different, you will want to have the comfort knowing that you're working with a moving company that offers the best quality door to door service available. You'll feel best about working with a highly trained and experienced staff that can provide their services as well as handle all the details that come with the stresses of documentation, insurance, customs assistance, shipping and storage. This will be no easy task, so at least let your movers take the bulk of the burden so you have lots less to worry about.

Try to do a little research at home by looking for companies that will help you move directly from your home state to your final destination. International moving Connecticut is a prime example for finding a good company that can get you into a different state or country with as little stress and worry as possible.

When looking for a company, try to get an idea of what their full range of services include. Chances are that if you're moving your residential goods you may need help with your business relocation as well. Many international movers offer all risk insurance, box and wardrobe moves, and secure storage and warehouse facilities. These are all things to look into when finding the best vendor to service all your moving needs.

Above all, make sure your shipping company has the experience as well as the international savvy, to plan prepare and transport your cargo anywhere in the world efficiently and thoroughly. There is nothing harder than having to deal with the added stress of moving your most valuable possessions to another country, so whether using international moving Connecticut or any other state, find the best one suited to your every need.

Merchant Mariner's Licensing and Documentation Regulations

== Quote ==
"In the March 16, 2009 Federal Register the US Coast Guard published a major rewrite of the merchant mariner's licensing and documentation regulations. The entire Federal Register Part is here. Among the new regulations:

• 46 CFR 15.401 "Employment and service within restrictions of credential" states in part: Beginning April 15, 2009, all mariners holding an active license, certificate of registry, MMD, or MMC issued by the Coast Guard must also hold a valid transportation worker identification credential (TWIC) issued by the Transportation Security Administration under 49 CFR part 1572.
• Also, there will be no interim MMCs. The law provides that the Coast Guard must ensure a mariner meets certain criteria before issuing a credential and the possession of such a credential is required to serve in a position on any vessel (small passenger vessel to tank ship) that requires a credential. The Coast Guard has decided not to allow merchant mariners to serve prior to the issuance of their MMC. This is an acknowledged difference with the TWIC 30-day new hire rule.

The US Environmental Protection Agency (EPA) Vessel General Permit for 26 types of operational discharges is now in effect for most commercial vessels over 79 feet in length. Vessels of 300 gross tons or more or have the ability to hold or discharge more than 8 cubic meters (2113 gallons) of ballast must submit an Notice of Intent in order to receive permit coverage. The deadline for submitting an NOI to escape the 30-day review period before operating in US waters is 19 Sept 2009. NOI's can be submitted starting 19 June 2009.

Dangerous fake copies of the Hammar H20 hydrostatic release unit have entered the market. Hammar issued a Safety Alert to warn about the risks in using these fake copies and also provided a number of ways to check the authenticity of products used. Serial numbers can be checked through the company website.

The US Coast Guard has issued a Policy Letter to provide guidance on compliance with the provisions of MARPOL 73/78, Annex VI (air pollution) for U.S. flagged vessels and all foreign flagged vessels 400 Gross Tons (ITC) and above that engaged on international voyages and call on U.S. ports.

The US Coast Guard issued a notice encouraging vessels making port calls in US ports to use the Advance Notice Form (ANF) and the Waste Delivery Receipt (WDR) approved by the IMO to improve communication between the ship and reception facility operators. The Coast Guard also encourages ship operators to send a copy of the ANF to the relevant Captain of the Port (COTP) prior to arrival in a US port.

The US Coast Guard and other search and rescue organizations now only receive distress alerts from digital 406­MHz Emergency Position Indicating Radio Beacons (EPIRBs)."
== Unquote==

*Sources:
Armstrong Marine Consulting, Inc (Federal Register-Department of Homeland Security).

Original enclosure (MMC-Consoldation-Final-Rule.pdf)

The Forwarder as Logistics Provider

Unlike transport services, a forwarder providing logistic services acts as principal, and not as agent of some other provider. In its role as logistics provider, a forwarder will provide other services such as consolidation of shipments from supplier, inventory management, distribution services, such as labeling, order fulfillment, and local delivery to consumers, pick and pack (i.e. assembly of products into consumer goods for retail sale), and many other.

Logistics agreement assume a relationship that will continue for a period of time, covering more than arrangements for transport of goods on individual occasions. A logistics relationship is more frequently formalized in a signed agreement operative over a period of time that covers all goods handled by the forwarder during the period.

If there is no signed agreement, these services present problems of contract management and interpretation that are in principle no different from those arising in the transport of goods. Naturally the content of the forwarder's undertakings applicable to transport services. Given these differences, FENEX (Netherlands Association for Forwarding and Logistics) has prepared standard conditions for logistics services that are available on its website.

Carriage of Goods by Sea

This act was introduced after many shipping conference were held in Brussels among various European nations interested in shipping transportation and it was finally formulated and termed as the Carriage of Goods by Sea Act 1924. The American Carriage of Goods by sea Act (COGSA) was passed in 1936 and is the counterpart of the 1924. It contains six sections and is subdivided into nine Articles.
The object this act is that carriers and shippers are bound by the Bill of Lading, q.v., covering both the shippers and the carriers with responsibilities and exceptions in the course of the carriage of cargo from one port to another.
Carrier definition
1. In the Carriage of Goods by Sea Act 1924, q.v., the word carrier is defined as the owner or the charterer or whoever enters into a contract with the shipper/s for transportation of merchandise
2. Airline or aircraft.
Carrier’s Lien as the ship-owner’s right to withhold cargo from being delivered to the consignee, q.v., as a guarantee against the collection of freight q.v., and other charges for the shipment.
Shipper: A person or company who enters into a contract with a liner conference, shipping line or shipowner for the carriage of good,.
Consignee: The receiver of the merchandise.
Liner: A cargo-carrying ship which is operated between schedule, advertised port of loading and discharge on a regular basis.