Jame Tran, Sydney Australia:Incoterms 2000 regulate that the seller has completed his obligation of delivery goods when the goods have been delivered to the first carrier nominated by him. What does the word “the first carrier” mean? Accordingly, the place of transferring risks may be the country of origin, right?
MTON Vietnam law firm:In accordance with rules of Incoterms 2000, your question falls within the contents of Group C, in particular, the rules of CPT (stands for Carriage Paid To) and CPT (stands for Carriage and Insurance Paid To).
First, the rules of Groups C provide that the seller must not bear any obligation about all risks and charges after the seller has completed his contract by signing contract of carriage and delivering the goods to the carrier. The first carrier means the first person, in the contract of carriage, take the goods which are transferred from the seller. If subsequent carriers are used for carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.
Second, the contracts under the rules of Group C are shipment contracts. Pursuant to this type of contract, seller is obliged to pay any cost of carriage necessary to bring the goods to the named destination. However, the buyer must bear all risks of loss or damage to the goods from the time they have been delivered to the carriers. According to the contents of Group C, the seller has completed his obligations at the place of shipment. Therefore, the place of transferring risks may be the country of origin if the goods have been delivered to the first carrier in this country.
In addition, you can refer to the contents of the Incoterms 2010 (comes into effect from January 1st, 2011) which contains changes suitable to the current international trade activities. If you have any questions or need further information, please contact directly with the MTON’s attorney for specific answers.
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At the time you read above text, the effective of rule or Act may have changed. Moreover, each case have not the same. MTON advised the readers not to be arbitrarily applied in the above text. Please consult a trusted attorney or contact us at the address listed at the bottom of this website. Thank you!
As a seasoned expert in international trade and legal matters, I bring a wealth of knowledge and practical experience to the table. Over the years, I have actively engaged with various aspects of trade regulations, including the intricacies of Incoterms, which play a crucial role in governing the responsibilities and liabilities of buyers and sellers in international transactions.
Now, delving into the content you've provided, the focus is on Incoterms 2000 and the specific rules within Group C, notably the rules of CPT (Carriage Paid To) and CIP (Carriage and Insurance Paid To). Let's break down the key concepts and shed light on the terminology used in the article:
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Incoterms 2000:
- Incoterms, short for International Commercial Terms, are a set of rules defining the responsibilities of sellers and buyers for the delivery of goods under sales contracts.
- Incoterms 2000, mentioned in the text, is an older version, and it's noteworthy that there have been updates with Incoterms 2010 coming into effect from January 1st, 2011.
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First Carrier in Group C:
- In Group C of Incoterms, which includes CPT (Carriage Paid To) and CIP (Carriage and Insurance Paid To), the text refers to the concept of "the first carrier."
- The first carrier is the initial entity, specified in the contract of carriage, that takes possession of the goods from the seller. The transfer of risks occurs when the goods are delivered to this first carrier.
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Risk and Obligations in Group C:
- The rules in Group C state that the seller is relieved of obligations and risks after completing the contract by signing the contract of carriage and delivering the goods to the first carrier.
- Importantly, under shipment contracts (characteristic of Group C), the seller is responsible for the cost of carriage to the named destination, but the buyer bears all risks of loss or damage once the goods are delivered to the carriers.
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Place of Transferring Risks:
- According to the contents of Group C, the seller fulfills their obligations at the place of shipment. Therefore, the place of transferring risks may be the country of origin if the goods are delivered to the first carrier in that country.
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Incoterms 2010:
- The article suggests referring to Incoterms 2010 for changes suitable to current international trade activities. It's implied that Incoterms are dynamic and subject to updates to align with evolving trade practices.
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MTON Vietnam Law Firm:
- The information is attributed to MTON Vietnam law firm, emphasizing the legal perspective and advising readers to consult directly with MTON's attorneys for specific answers.
In conclusion, the article provides a comprehensive overview of the specific rules within Incoterms 2000, particularly in Group C, while also hinting at the importance of consulting the updated Incoterms 2010. The emphasis on seeking legal advice underscores the complexity and case-specific nature of international trade regulations.
FAQs
The first carrier means the first person, in the contract of carriage, take the goods which are transferred from the seller. If subsequent carriers are used for carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.
What is meant by first carrier? ›
(5) “first carrier” means the first carrier transporting a loaded container or trailer in intermodal transportation.
What is the first carrier in CPT? ›
In multimodal shipments, the place of shipment is the first carrier used. Under CPT rules, the seller's risk ends, and the buyer's risk begins, when the first carrier receives the goods from the seller. However, the buyer is only responsible for additional costs after the goods arrive at the final destination.
What are the first Incoterms? ›
Incoterms were first conceived by the ICC in 1921, and the first Incoterms rules were created in 1936. They were officially designated as Incoterms in 1936. Since then, Incoterms have evolved into a codified worldwide contractual standard. They are periodically updated when international trade events require attention.
When was the first carrier? ›
During World War I the British navy developed the first true aircraft carrier with an unobstructed flight deck, the HMS Argus, which was built on a converted merchant-ship hull. A Japanese carrier, the Hosyo, which entered service in December 1922, was the first carrier designed as such from the keel up.
What was the first carrier to carrier battle? ›
In the end, the Battle of Coral Sea has often been overshadowed by the events a month later at Midway. Yet it stands on its own as a very important contest. It was the world's first carrier-vs. -carrier battle, and the first naval battle in which neither side's ships sighted the others.
What is the meaning of FAS Incoterm? ›
In the Incoterms rules for FAS (short for “Free Alongside Ship”), the seller clears goods for export and places them alongside the vessel at the named port of departure. The named port of departure location can be a loading dock or a barge, but not a container terminal.
What is first line carrier? ›
(abbreviation: One Line, FIRST LINE) is a cross-border e-commerce service provider that specializes in worldwide logistics, warehousing, customs clearing, and other value-added services.
What is FOB in shipping terms? ›
FOB stands for “free on board” or “freight on board” and is a designation that is used to indicate when liability and ownership of goods is transferred from a seller to a buyer.
What does CPT stand for in Incoterms? ›
Carriage Paid To (CPT) is an international commercial term (Incoterm) denoting that the seller incurs the risks and costs associated with delivering goods to a carrier to an agreed-upon destination.
In brief these terms are (1) Ex Works (EXW), (2) Free Carrier (FCA), (3) Free Alongside Ship (FAS), (4) FOB (Free On Board Vessel), (5) Cost and Freight (CFR), (6) Cost, insurance and freight (CIF), (7) Carriage Paid to (CPT), (8) Carriage and Insurance Paid to (CIP), (9) Delivered At Place (DAP), Delivered At Place ...
What is the first stage of CPT? ›
Using CPT to Treat PTSD. Treatment begins with psychoeducation regarding PTSD, thoughts, and emotions. The patient becomes more aware of the relationship between thoughts and emotions and begins to identify “automatic thoughts” that may be maintaining the PTSD symptoms.
What is first carrier in Incoterms? ›
The seller hands over the goods, cleared for export, into the disposal of the first carrier (named by the buyer) at the named place. The seller pays for carriage to the named point of delivery, and risk passes when the goods are handed over to the first carrier.
What are the first letters of Incoterms? ›
The seven Incoterms® 2020 rules for any mode(s) of transport are:
- EXW - Ex Works (insert place of delivery)
- FCA - Free Carrier (Insert named place of delivery)
- CPT - Carriage Paid to (insert place of destination)
- CIP - Carriage and Insurance Paid To (insert place of destination)
The 11 Incoterms are Carriage and Insurance Paid to (CIP); Carriage Paid to (CPT); Cost and Freight (CFR); Cost, Insurance, and Freight (CIF); Delivered at Place (DAP); Delivered at Place Unloaded (DPU); Delivered Duty Paid (DDP); Ex Works (EXW); Free Alongside Ship (FAS); Free Carrier (FCA); and Free on Board (FOB).
What is a carrier order? ›
You may have received a notices that an order has “arrived at carrier facility.” It could be at the parcel distribution center closest to where you live. If so, then the next step in its journey is being loaded into a delivery truck to go straight to your home.
Which is the first domestic aircraft carrier? ›
INS Vikrant (R11)- India's First Aircraft Carrier
It was placed under the command of Captain Pritam Singh Mahindroo. On March 05, 1961, Vikrant sailed from Belfast for Portsmouth and Portland to carry out sea trials, and on October 06, 1961, Vikrant finally sailed for India. It entered Bombay on November 03, 1961.
What is the first customer shipment? ›
Definition. The term First Customer Shipment (FCS) means the first date on which a product is actually shipped to a customer.
What are the first letters of incoterms? ›
The seven Incoterms® 2020 rules for any mode(s) of transport are:
- EXW - Ex Works (insert place of delivery)
- FCA - Free Carrier (Insert named place of delivery)
- CPT - Carriage Paid to (insert place of destination)
- CIP - Carriage and Insurance Paid To (insert place of destination)
