B-6-12- 2000 Incoterms © variations


6-12-1- Variations: a solution

It is necessary to point out that Incoterms © can be rendered invalid with contract provisions between an importer and an exporter.

6-12-2- Incoterms © variations: definition

Therefore, a variation is like a clause or a term that affects what is written in the contract (the Incoterms ©). Incoterms © are akin to a contract. Example : DEQ "Duties on buyer's Account".
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6-12-3- Variations: the danger

It's strongly recommended not to use variations in a systematic way. The risk in the long-run is that Incoterms © variation becomes completely invalid and creates misunderstandings, or worse, litigation.

Keep in mind, in case of litigation, the court considers Incoterms © used with variations as "not valid", depriving the exporter and the importer of the legal and strict Incoterm framework.

6-12-4- Variations

Incoterms

Variations

Conseqencies

 Our experience

FOB

FOB "stowed"

The exporter incurs all costs at the port of shipment.

Commonly used in Eastern Europe, by the importer

CIF

CIF "Landed"

The exporter incurs the unloading charges at the port of arrival, but does not bear the risks linked to the goods.

Dangerous for the exporter -- verify the handling equipment at the port of arrival

CIF

CIF "insurance war"

In addition to FPA (free of Particular Average) insurance, the exporter insurance must cover against the "risks of war," "risks of strike" and other assimilated risks

Not frequently used (the exporter must include the costs of its products).

DEQ

DEQ "Duties on buyer's Account"

Import customs duties and taxes are borne by the importer, not the exporter.

Of interest for an importer such as an governmental organization, vis-à-vis the connection with the customs of its country.

DEQ

DEQ "exclusive of VAT and/or Taxes"

VAT Or all other tax are borne by the importer and can be deducted..

Be careful! The exporter pays the import customs duties and taxes unless otherwise specified.

DDU

DDU "cleared"

Customs import formalities are borne by the exporter

The exporter is in charge of everything, excluding customs import duties and taxes.

EXW

EXW "loaded"

With this variation, the costs of the loading and securing are borne by the exporter..

The importer must indicate here that it's the exporter who is responsible for loading.

DDP

DDP "Not unloaded

Here, the costs of unloading of truck or wagon are the responsibility of the importer.

Of interest for the exporter in cases where the importer possesses the necessary modes transportation.

DDP

DDP "exclusive of VAT and/or Taxes "

VAT and all other taxes are borne by the importer.

The exporter pays the customs import duties, unless otherwise specified.