Incoterms

ENGLISH FOR INTERNATIONAL
BUSINESS CONTRACTS
INCOTERMS
GROUP 5
GROUP 5
1. Phạm Hoàng Anh Thư

2. Nguyễn Tấn Dũng
3. Nguyễn Thị Thu Hương
4. Phan Nhật Nam
1. INCOTERMS
DEFINITION OF INCOTERMS
• Incoterms, or International
Commercial Terms, are standardized
rules established by the International
Chamber of Commerce (ICC).
1. INCOTERMS
DEFINITION OF INCOTERMS
• Incoterms play a crucial role in

international trade transactions,
providing a common language and
framework for buyers and sellers.
EVOLUTION FROM INCOTERMS 2010 TO 2020
2010 2020
• Incoterms have evolved from 2010 to 2020

to adapt to the changing landscape of
international trade.
• Updates in Incoterms aim to address emerging
challenges, align with modern trade practices,
and enhance clarity for users.
EVOLUTION FROM INCOTERMS 2010 TO 2020
2010 2020
• The updates refine and improve the application

of Incoterms in real-world scenarios.
• Incoterms 2020 stays current with industry

practices and considers advancements in
global trade.
2. 11 TRADE TERMS OF INCOTERMS
All Modes of Transportation:
1. EXW (Ex Works):
An EXWorks is an agreement that maximizes the buyer’s risk and responsibility,
by requiring the seller to only make the goods available for the buyer at their
warehouse or dock.
2. FCA (Free Carrier) to a named place:

The FCA is an agreement where the seller’s obligations are to deliver the cargo
to an agreed-upon port, known as the “Named Place.” The seller is responsible
for exporting the shipment, and all steps before that.
3. DAT (Delivered at Terminal)

to a named terminal:
The DAT Incoterm requires the
sellers to pay for all the costs
to deliver a shipment all the
way through to the destination
terminal.
4. DAP (Delivered at Place) to a named place:

The seller is responsible for all costs and risks associated with the delivery of the
goods to the final agreed-upon place, usually the buyer’s premises.
5. CPT (Carriage Paid To) to a named carrier/place:
CPT is almost identical to DAP, in that the seller pays to get the goods to the destination of
the buyer’s choosing.
However, unlike DAP, under the CPT Incoterm, risk transfers to the buyer as soon as the
goods are under control of the carrier at the origin.
6. CIP (Carriage & Insurance Paid) to a named carrier/place:
CIP is almost identical to CPT, the only difference being that the seller is
required to purchase insurance against loss or damage to the goods until they
arrive at the final destination.
7. DDP (Delivered Duty Paid):

The seller is liable for all shipping arrangements.
Marine Only Terms:
1. FAS (Free Alongside Ship):

The goods are considered to be delivered when the seller's ship arrives
alongside the buyer's ship or destination port.
Marine Only Terms:
2. FOB (Free on Board):

The seller is responsible for loading the purchased cargo onto the ship, and all
costs associated.
Marine Only Terms:
3. CFR (Cost & Freight) to a named place:
The seller is responsible for transporting the cargo to the buyer’s port.
Marine Only Terms:
4. CIF (Cost, Insurance and Freight) to a named place:
The seller is responsible for exporting the cargo and shipping it until they arrive at the
destination port, while ensuring the cargo throughout the voyage.
3. ENHANCEMENTS AND
UPDATES IN INCOTERMS 2020
The main difference between Incoterms 2010 and
Incoterms 2020 are
1. Renamed the term DAT to DPU
2. Upgraded a higher level of insurance cover in CIP
3. Allow buyers and sellers
can be a carrier for their own
goods
4. The Bill of Lading Process in FCA
5 Increased Security The seller will borne
Requirements, security cost associated
Allocations and Costs with export
The party who arranges The buyer will borne

the transport is security cost associated
responsible for the with import
transportation costs
4. BENEFITS &
PRACTICAL APPLICATIONS
BENEFITS
• The standardization and specificity of

complicated international trade
aspects
4. BENEFITS &
BENEFITS
• If Incoterms are not used, the parties

will have to negotiate every detail
about the rights and obligations of
related parties
4. BENEFITS &
BENEFITS
• Incoterms help eliminate
misunderstandings when having to
discuss many meticulous details due
to differences in language and
international customs.
4. BENEFITS &
BENEFITS
• Incoterms are beneficial for

Vietnamese businesses and minimize
possible legal risks
4. BENEFITS &
BENEFITS
• It is an important legal basis for

making complaints and resolving
disputes (if any) between sellers and
buyers.
4. BENEFITS &
The scope of Incoterms is limited to matters relating to

the rights and obligations of the parties to the contract
of sale with respect to the delivery of goods sold.
4. Benefits & Practical Applications
Specifically in Viet Nam
In fact, import-export businesses in Vietnam often use Incoterms 2000, 2010 and
mainly import under:
4. BENEFITS & PRACTICAL APPLICATIONS
→ It is necessary to change the current trend
in import and export activities to get more
benefit in this market.
Usage also depends heavily on the economic potential of Vietnamese

businesses, negotiation level
Although currently in Vietnam, it still

favors export and import under some
“familiar conditions” of Incoterms, this
is consistent with the actual situation
and accurately reflects the economic
picture of Vietnam today.
THANK YOU
FOR LISTENING

Incoterms

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ENGLISH FOR INTERNATIONAL

1. Phạm Hoàng Anh Thư

• Incoterms play a crucial role in

• Incoterms have evolved from 2010 to 2020

• The updates refine and improve the application

• Incoterms 2020 stays current with industry

2. FCA (Free Carrier) to a named place:

3. DAT (Delivered at Terminal)

4. DAP (Delivered at Place) to a named place:

7. DDP (Delivered Duty Paid):

1. FAS (Free Alongside Ship):

2. FOB (Free on Board):

The party who arranges The buyer will borne

• The standardization and specificity of

• If Incoterms are not used, the parties

• Incoterms are beneficial for

• It is an important legal basis for

The scope of Incoterms is limited to matters relating to

Usage also depends heavily on the economic potential of Vietnamese

Although currently in Vietnam, it still

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