Dear all,
May I know :
1) What is the difference between CFR and CPT trade term and
in what circumstances that these trade term will be used ?
2) What is the difference between DAT and DAP trade term and
which one is the least favourable to the seller ?
What Is The Difference Between CFR And CPT Trade Term
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RAKESHCH
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RAHULCH
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INCOTERMS 2010
If I may I would like to add some comments to the difference between CFR and CPT.
Let's start with CFR. First, I should say that CFR means Cost And Freight and not Cost Of Freight.
CFR is to be used for sea or inland waterway transport.
The seller must deliver the goods either by placing them on board the vessel or by procuring the goods so delivered. CFR is not appropriate where goods are handed over to the carrier before they are on board the vessel, for example: goods in containers (containers, which are usually delivered at terminal. Use CPT instead.
The sellers' responsibilities include: Booking the vessel; Arranging delivery and loading of goods on board vessel; paying Freight cost to destination port; providing buyer with transport documentation; clearing for Export; giving delivery notice to buyer.
The seller bears all risks of or damage to the goods once they have been delivered on board the vessel at the port of shipment or by procuring the goods so delivered.
The buyer accepts delivery of goods at agreed port of destination; clears for Import and unloads the goods from vessel at destination port.
CPT - Carriage Paid To: The seller fulfils its obligation to deliver when it hands over the goods to the carrier contracted for the carriage of the goods from the agreed point of delivery. When delivery is not intended to be made directly to a vessel.
The seller packs and marks as agreed and required; books and pays freight cost to agreed destination; clears goods for Export; gives buyer sufficient notice of delivery; provides and pays for necessary documents; provides necessary information to buyer to assist Import clearance; does not take main carriage transport risk. The buyer assumes main carriage transport risk.
There's much more to Incoterms®2010...you can have a look at some books or Internet.
Hope it helps
Let's start with CFR. First, I should say that CFR means Cost And Freight and not Cost Of Freight.
CFR is to be used for sea or inland waterway transport.
The seller must deliver the goods either by placing them on board the vessel or by procuring the goods so delivered. CFR is not appropriate where goods are handed over to the carrier before they are on board the vessel, for example: goods in containers (containers, which are usually delivered at terminal. Use CPT instead.
The sellers' responsibilities include: Booking the vessel; Arranging delivery and loading of goods on board vessel; paying Freight cost to destination port; providing buyer with transport documentation; clearing for Export; giving delivery notice to buyer.
The seller bears all risks of or damage to the goods once they have been delivered on board the vessel at the port of shipment or by procuring the goods so delivered.
The buyer accepts delivery of goods at agreed port of destination; clears for Import and unloads the goods from vessel at destination port.
CPT - Carriage Paid To: The seller fulfils its obligation to deliver when it hands over the goods to the carrier contracted for the carriage of the goods from the agreed point of delivery. When delivery is not intended to be made directly to a vessel.
The seller packs and marks as agreed and required; books and pays freight cost to agreed destination; clears goods for Export; gives buyer sufficient notice of delivery; provides and pays for necessary documents; provides necessary information to buyer to assist Import clearance; does not take main carriage transport risk. The buyer assumes main carriage transport risk.
There's much more to Incoterms®2010...you can have a look at some books or Internet.
Hope it helps
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mano
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incoterms
dear,
2-dat v.s dap in short
A-DAT:Delivered at terminal [named terminal at port or place of destination]
terminal:Terminal includes any place , whether covered or not , such as a quay, warehouse, container yard or road , rail or air cargo terminal.
1-obligations of the seller:Similar to CIF, except that the liability of seller does not cease until the goods have been placed at the disposal of buyer by unloading the goods from the arriving means of transport and placing them at the disposal of the buyer at a specific terminal at the named port or place of destination
(if one is not specified, the seller may select the terminal that best suits its purpose). Theoretically,
seller need not insure the goods, but in practice it would be wise to do so.
2-obligations of byuer:Similar to CIF. The liability of buyer exists from the time when goods
are placed at its disposal in the destination terminal, and they must take delivery of the goods from that time. The insurance risk falls on buyer once the goods are unloaded at the terminal.
.
B-DAP:Delivered at place [named place of destination]
1-obligations of seller:Deliver the goods to the agreed place of destination ready for unloading. Supply buyer with a commercial invoice or its electronic equivalent together with the relevant transport document or delivery order. Arrange any export licence and complete export customs requirements, including payment of costs, duties and taxes. Arrange and pay for contract of carriage to the named point of destination. Advise buyer of the expected time of arrival of the goods, so that arrangements can be made to take delivery. Theoretically, seller need not insure the goods on their voyage. However, in view of their liability for the goods, such action would be unwise. Goods will be suitably packed unless it is the norm for the goods involved to be delivered unpacked.
2-obligations of buyer:buer should obtain any import licence and perform any customs requirements necessary for the import of the goods, including meeting all costs involved, duties and taxes. Accept delivery of goods at the named place of destination. buyer is liable for goods and costs from the time the goods are placed at its disposal at the place of delivery. The insurance risk is buyer’s once the goods have been delivered to the agreed place.
noting DAT and DAP, in both terms delivery and related cost are transferred at the same point
the main difference in the delivery point/place and associated cost,
delivery and cost of DAT: seller unloads the goods at its risk and cost of the arrivaing means of transport.
delivery and cost of DAP:buyer unoload the goods at its risk and cost of the arrivaing means of transport.
as terminal is a place, DAT is less favourable to seller in the matter of risk and may be in cost too
if you have an exam question respect the less favourable to seller please go with DAT
.
Regards
2-dat v.s dap in short
A-DAT:Delivered at terminal [named terminal at port or place of destination]
terminal:Terminal includes any place , whether covered or not , such as a quay, warehouse, container yard or road , rail or air cargo terminal.
1-obligations of the seller:Similar to CIF, except that the liability of seller does not cease until the goods have been placed at the disposal of buyer by unloading the goods from the arriving means of transport and placing them at the disposal of the buyer at a specific terminal at the named port or place of destination
(if one is not specified, the seller may select the terminal that best suits its purpose). Theoretically,
seller need not insure the goods, but in practice it would be wise to do so.
2-obligations of byuer:Similar to CIF. The liability of buyer exists from the time when goods
are placed at its disposal in the destination terminal, and they must take delivery of the goods from that time. The insurance risk falls on buyer once the goods are unloaded at the terminal.
.
B-DAP:Delivered at place [named place of destination]
1-obligations of seller:Deliver the goods to the agreed place of destination ready for unloading. Supply buyer with a commercial invoice or its electronic equivalent together with the relevant transport document or delivery order. Arrange any export licence and complete export customs requirements, including payment of costs, duties and taxes. Arrange and pay for contract of carriage to the named point of destination. Advise buyer of the expected time of arrival of the goods, so that arrangements can be made to take delivery. Theoretically, seller need not insure the goods on their voyage. However, in view of their liability for the goods, such action would be unwise. Goods will be suitably packed unless it is the norm for the goods involved to be delivered unpacked.
2-obligations of buyer:buer should obtain any import licence and perform any customs requirements necessary for the import of the goods, including meeting all costs involved, duties and taxes. Accept delivery of goods at the named place of destination. buyer is liable for goods and costs from the time the goods are placed at its disposal at the place of delivery. The insurance risk is buyer’s once the goods have been delivered to the agreed place.
noting DAT and DAP, in both terms delivery and related cost are transferred at the same point
the main difference in the delivery point/place and associated cost,
delivery and cost of DAT: seller unloads the goods at its risk and cost of the arrivaing means of transport.
delivery and cost of DAP:buyer unoload the goods at its risk and cost of the arrivaing means of transport.
as terminal is a place, DAT is less favourable to seller in the matter of risk and may be in cost too
if you have an exam question respect the less favourable to seller please go with DAT
.
Regards