| | INCO TermsThis functionality is specific for India. The INCO (International Commercial) terms also known as the terms of delivery, is defined by the ICC (International
Chamber of Commerce), to make international trade easier for the buyer and
seller. In LN the Terms of Delivery defines the contract responsibilities of the
buyer and the seller for an import transaction. A typical contract responsibility for buyer(B) and seller (S)
according to the INCO terms (Terms of delivery) are displayed as
below: | Contract Responsibilities | ExW | FCA | FAS | FOB | CFR | CIF | CPT | CIP | DAF | DES | DEQ | DDE | DDP |
|---|
| Inland freight in seller country | B | S | S | S | S | S | S | S | S | S | S | S | S | | Customs clearance in seller's
country | B | S | S | S | S | S | S | S | S | S | S | S | S | | Payment of custom duties in seller's
country | B | S | S | S | S | S | S | S | S | S | S | S | S | | Loading to the main carrier or means
of conveyance | B | S | B | S | S | S | S | S | S | S | S | S | S | | Main
carriage or freight | B | B | B | B | S | S | S | S | S | S | S | S | S | | Cargo (marine) insurance | B | B | B | B | B | S | B | S | B | B | B | S | S | | Unloading from the main carrier or means of conveyance | B | B | B | B | S | B | S | B | S | B | S | S | S | | Customs clearance in buyer's
country | B | B | B | B | B | B | B | B | B | B | S | B | S | | Payment of customs duties
in buyer's country | B | B | B | B | B | B | B | B | B | B | S | B | S | | Inland freight in buyer's country | B | B | B | B | B | B | B | B | B | B | B | S | S | | Other costs and risks in buyer's
country | B | B | B | B | B | B | B | B | B | B | B | S | S |
LN defines the following terms of delivery in the Delivery Terms (tcmcs0141m000) session: - FOB (Free On Board)
- FCA (Free Carrier)
- FAS (Free Alongside Ship)
- EXW (Ex Works)
- DES (Delivered Ex Ship)
- DEQ (Delivered Ex Quay)
- DDU (Delivered Duty Unpaid)
- DDP (Delivered Duty Paid)
- DAF (Delivered At Frontier)
- CPT (Carriage Paid To)
- CIP (Carriage and Insurance Paid to)
- CIF (Cost, Insurance and Freight)
- CFR (Cost and Freight)
LN allows additional charge codes in the Purchase Order Additional Charges (tdpur9137m00l) session, based on the terms of
delivery group present in the below table. Here Y stands for 'Applicable' and N
for 'Not applicable'. Following are the three examples: - If the Terms of delivery group is CIF, then the charge code Other Charges is applicable.
- If the terms of delivery group is ExW, then all the charge
codes ( Insurance, Freight and Other Charges) are applicable.
- If the terms of delivery group is DDP, then all the charge
codes are not applicable, because all the charges are paid by the seller.
| Additional
charges | ExW | FCA | FAS | FOB | CFR | CIF | CPT | CIP | DAF | DES | DEQ | DDE | DDP |
|---|
| Insurance | Y | Y | Y | Y | Y | N | Y | N | Y | Y | Y | N | N | | Freight | Y | Y | Y | Y | N | N | N | N | N | N | N | N | N | | Other
charges | Y | Y | Y | Y | Y | Y | Y | Y | Y | Y | Y | Y | N |
| |