In all the rules the seller bears all risks of loss or damage to the goods until they have been delivered in accordance with A2 described above. Note that this rule does not discuss the means of transport at all, it merely mentions the carrier regardless of how the carrier will arrange transport of the goods. The buyer’s obligation is to take delivery when the goods have been delivered as described in A2. Why at the end? Because before that the buyer could still inform the seller of his desired time within the agreed period. Clearly the seller cannot be expected to provide the means to unload the goods into say a carrier’s terminal nor would they be allowed to for safety, security and insurance reasons.Ģ) at the time nominated by the buyer within the agreed period, orģ) failing these, at the end of the agreed period. If for example the loading dock needs to be accessed through a carpark it might be that a forty-foot container on a trailer can not be brought close to that dock.Ģ) If the named place is not the seller’s premises then when the seller places the goods at the disposal of the buyer or its carrier on the seller’s vehicle delivering the goods to that place but not unloaded. Any restrictions at the site need to be communicated too. As in EXW the seller would need to inform the buyer of any specific locations such as its own warehouse, contract manufacturer or a particular loading dock. If the goods are loaded into a container on the back of the vehicle it would reasonably be expected that the seller would lash and secure the goods. The word “loaded” here would usually mean safely placed on the vehicle, but for example if pallets or crates are loaded onto a truck then any tying down or lashing will be the responsibility of the vehicle’s driver under safety and traffic rules. This includes of course the buyer’s carrier but allows the buyer to collect on its own vehicle such as in a domestic sale. These matters should be specified in the contract.ġ) If the named place is the seller’s premises then when the goods have been loaded on the means of transport provided by the buyer. The rules do not refer to when the payment is to be made (before shipment, immediately after shipment, thirty days after shipment, half now half later, or whatever) or how it is to be paid (prepayment, against an email of copy documents, on presentation of documents to a bank under a letter of credit, or other arrangement). In each of the rules the buyer must pay the price for the goods as stated in the contract of sale. The rules do not define what “electronic form” is, it can be anything from a pdf file to blockchain or some format yet to be developed in the future. In each of the eleven rules the seller must provide the goods and their commercial invoice as required by the contract of sale and any other evidence of conformity such as an analysis certificate or weighbridge document etc that might be relevant and specified in the contract.Įach of the rules also provides that any document can be in paper or electronic form as agreed to in the contract, or if the contract makes no mention of this then as is customary. It is also the only provision in the Incoterms® 2020 rules which requires a party to instruct a carrier yet gives no direct remedy to the other party should the carrier fail to act accordingly. This new provision was added mainly to deal with the seller’s needs for letters of credit but an unintended consequence would be that usually the seller would end up being named as shipper on that bill of lading, imposing on them liabilities that they neither knew about or accepted. The seller has no obligation to actually put the goods on board, and if anything was to happen to the goods between delivery and going on board, while at the buyer’s risk, the reality in such trade is that not only would the seller not be given an board bill of lading but the buyer would not consider the goods exported and refuse payment. It still leaves delivery being when the seller hands over the goods to the buyer’s carrier. The 2020 version introduced a new obligation on the buyer, if agreed, to instruct its carrier to issue an on board bill of lading but while it is well-intentioned it is not a well-thought out provision and will fail in its execution. They don’t want to be faced with any possibilities of having to deal with any problems whatsoever in the exporting country. This is because in such shipments the buyer wants to only take on the risk of damage or loss of the goods when they have actually been exported. Despite being recommended in place of FOB for cross-ocean container shipments this rule in practice is largely unworkable for them.
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