TEMP-A LOGISTIC SERVICE IN ASIA INCOTERMS 2020
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Incoterms 2020
Incoterms are a set of rules defining the terms of sale. Furthermore, people use it all over the world. In addition, these rules share the costs and responsibility between the buyer and the seller. They are used while transporting goods from the seller to the buyer. Incoterms refer primarily to the UN Convention on Contracts for the International Sale of Goods. The latest released version – Incoterms 2010 – has been operating since January 1, 2010. The rules change every 10 years, so soon we can expect new rules – Incoterms 2020.
Changes in 2020
Proposals for changes regarding Incoterms 2020 have already been presented. The official announcement of the modification will be released at the end of 2019, and what is more, the new rules will start operating on January 1, 2020.
The International Chamber of Commerce (ICC) establish the Incoterms rules. This year, the representatives of China and Australia also participated in the exporters’ committee to prepare the new Incoterms rules for the first time.
Division of Incoterms
Incoterms 2020 are divided into four groups (C, D, E, F). The rules are classified according to the fees, risk, responsibility for formalities, as well as issues related to import and export.
incoterms 2020
C Group

In group C (Main Carriage Paid), the seller concludes a transport contract with the forwarder and takes the costs. In this case, the seller is responsible for conducting export clearance. The risk is transferred at the time of posting the goods to the buyer. All matters arising after loading costs related to transporting, and other events, are the buyer’s responsibility. Group C includes the following Incoterms rules: CFR, CIF, CPT, and CIP.
D Group
Group D (Arrival) assumes that the seller is obliged to deliver the goods to a specific place or the port of destination. This group includes such Incoterms as DAP, DPU, and DDP.
E Group
In group E (Departure), the seller makes the goods available to the buyer at the delivery point indicated by the seller. The seller is not obliged either to customs or export clearance and does not bear the risk and costs of loading. In group E, there is only Incoterms EXW.
F Group
Group F (Main Carriage Unpaid) obliges the seller to perform export customs clearance. The seller does not pay transport and insurance costs. FCA, FAS, and FOB belong to this group.
Incoterms 2020 – what will change?
One of the major changes is deleting the DAT rule and replacing it with a DPU. 
At first, consideration was also given to removing the EXW rule, but eventually, it remained in Incoterms 2020. The EXW rule gives the most rights to the importer, with the least involvement of the seller.
Another important proposal for change concerns the FCA rule. Incoterms 2020 provides a market need for waybills (BLs) marked on board when applying the FCA (Free Carrier) rule. 
FCA rules
FCA is the most common Incoterms rule (approx. 40% of international commercial operations). It is a very versatile rule that allows the delivery of goods to various places (eg address, terminal, port, airport, etc.), which are mostly located in the buyer’s country.
The Committee decided that the FCA rule will provide for two possible places of delivery.
A first variant is a place belonging to the seller (e.g., his warehouse, factory, yard). Delivery is considered complete when the goods are physically transferred (after loading) to the care of a courier or other person designated by the buyer.
However, the second option applies to the place indicated in the contract, which does not belong to the seller (e.g., seaport, terminal). In this situation, the delivery is considered to have been made after the goods have been handed over to the carrier, on the means of transport sent by the seller. It should be noted that unloading goods from the means of transport is not the responsibility of the seller.
Incoterms – CIF, and CIP
Incoterms 2020 aligns different levels of insurance coverage in Cost Insurance and Freight (CIF rules) and Carriage and Insurance Paid To (CIP).
Carriage with own means of transport – FCA, DAP, DPU, DDP
Incoterms 2020 includes arrangements for carriage with own means of transportation in FCA, Delivery at Place (DAP), Delivery at Place Unloaded (DPU), and Delivered Duty Paid (DDP).
Incoterms 2020 – discussions
It may seem that changes to existing Incoterms are not much, but Incoterms 2020 may be easier to understand than Incoterms 2010. The commission wanted to avoid situations where Incoterms are misinterpreted and misused, which is often associated with costly consequences. 
The significant differences between Incoterms 2010 and Incoterms 2020 include primarily:
Bill of lading in the FCA Incoterms rule;
Cost-sharing issue;
Organization of transport by the seller’s or the buyer’s means of transport, applying the FCA, DAP, DPU, or DDP rules;
Change of Incoterms DAT to Incoterms DPU;
Including safety requirements in the obligation and transport costs;

Temp-A LOGISTIC

- AIR LOGISTIC

- TOTAL LOGISTIC SERVICE

- TRAIN LOGISTIC

- TRUCK LOGISTIC

- SEA CARGO

- CUSTOM CLEARANCE

 WAREHOUSE-DISTRIBUTION

- WAREHOUSE-DISTRIBUTION

- FOB SERVICE

- LCL SERVICE

- ONLINE LOADING SERVICE

- CHECKING LOADING PROCESS

- EXPEDITOR SERVICE

The following 4 Incoterms are dropped

DAF
DES
DEQ
DDU

Two new Incoterms are introduced

DAT
DAP

Terms for any Mode or Mode of Transport

CIP – Carriage and insurance paid to
CPT – Carriage paid to
DAP – Delivered at place
DAT – Delivered at terminal
DDP – Delivery duty paid
EXW – Ex works
FCA – Free carrier

These terms all need to specify the port or destination

Terms for Sea and Inland Waterways

CFR – "Cost and Freight" 
CIF – Cost, Insurance and Freight

 These above 2 terms are to the named port of destination

FAS – Free alongside ship
FOB – Free on Board

These above 2 terms are to a named port of shipment

ECSA, WCSA, Mexico, Panama, Central American, Caribbean Sea; MSK, CMA, HPL, EMC, MSC, COSCO, HMM
  • ECSA, WCSA, Mexico, Panama, Central American, Caribbean Sea; MSK, CMA, HPL, EMC, MSC, COSCO, HMM

  • Africa: BENLINE, SAFMARINE, PIL, MSK, ZIM, MSC, EMI, NDS, CMA, OOCL

  • Europe: MSK, YML, HPL, OOCL, MOL

  • America: APL, COSCO, MSC, HPL, CMA and SM LINE

  • Korea and Japan: NAMSUNG, PANCON, KMTC, HEUNG-A, SINOKOR, EASLINE, TAIYOUNG, DONGJIN, DONGYOUNG, TIANREN and SITC

  • Southeast Asia: WHL, YML, HEUNG-A, EMC, BENLINE, SITC, TSL and AEL

  • Middle East: OOCL, RCL, BENLINE, HMM, KMTC, IRISL, UASC and AEL

  • Australia & New Zealand: MSK, Cosco, CMA, OOCL, YML

DDP: (Delivery duty paid )
Freight: Seller must pay for freight costs to named terminal, place or destination.
Risk: Seller bears risk until delivery to named terminal, place or destination, costs of unloading the goods at terminal, place and destination and import duties, import VAT and other applicable taxes.
Seller is responsible for freight costs of carriage to named terminal, place or destination.
The Seller bears the risk to the goods until delivery to named terminal, place or destination.
Transport by Sea

FAS: (Free alongside ship)
Freight: Seller must pay for freight costs of the goods to the side of a ship.
Risk: Seller bears risk until delivery of the goods to the side of a ship.
Seller is responsible for costs of carriage to the side of a ship.
The Buyer bears the risk and freight costs from delivery of the goods to the side of the ship.

FOB: (Free on Board)
Freight: Seller must pay for freight costs to deliver the goods on board of a ship.
Risk: Seller bears risk until delivery of the goods on board of a ship.
Seller is responsible for costs of carriage until delivery of the goods on board of a ship.
The Buyer bears the risk and freight costs from delivery of the goods on board of a ship.

CFR: (Cost and freight to )
Freight: Seller must pay for freight costs to deliver the goods to destination.
Risk: Seller bears risk until delivery of the goods on board of a ship.
Seller is responsible for costs of carriage to destination and unloading goods at destination.
The Buyer bears the risk from delivery of the goods on board of a ship and freight costs onwards from the destination.
Please note that transfer of the freight costs obligation and transfer of risk do not occur at the same time.

CIF: (Cost, Insurance and Freight to)
Freight: Seller must pay for freight costs to deliver the goods to destination.
Risk: Seller bears risk until delivery of the goods on board of a ship.
Seller is responsible for costs of carriage to destination, unloading goods at destination and insurance of the goods during transit.
The buyer bears the risk from delivery of the goods on board of a ship and freight costs onwards from the destination.
Please note that transfer of the freight costs obligation and transfer of risk do not occur at the same time.

Appropriate Incoterm 2020 descriptions

The appropriate Incoterm 2020 descriptions are listed below,

All Modes of Transport

EXW: (Ex Works)
Freight: Seller's premises
Risk: Seller's premises
Seller is only responsible for making goods available at the Seller's premises.
The Buyer bears the full risk and freight costs from Seller's premises to destination.

FCA: (Free Carrier)
Freight: Seller must deliver to the first carrier.
Risk: Seller bears risk until delivery to the first carrier.
Seller is responsible for costs of handing over the goods to the first agreed carrier and loading.
The Buyer bears the risk and freight costs from delivery to the first carrier to destination.

CPT: (Carriage paid to)
Freight: Seller must pay for freight costs to destination.
Risk: Seller bears risk until delivery to the first carrier.
Seller is responsible for costs of carriage to destination and unloading of goods at destination.
The Buyer bears the risk from delivery to the first carrier and for freight costs onwards from destination.
Please note that transfer of the freight costs obligation and transfer of risk do not occur at the same time.

CIP: (Carriage and insurance paid to)
Freight: Seller must pay for freight costs to destination.
Risk: Seller bears risk until delivery to the first carrier.
Seller is responsible for costs of carriage to destination, unloading goods at destination and insurance of the goods during transit.
The Buyer bears the risk from delivery to the first carrier and for freight costs onwards from destination.
Please note that transfer of freight costs obligation and transfer of risk do not occur at the same time.

DAT: (Delivered at terminal)
Freight: Seller must pay for freight costs to named terminal or destination.
Risk: Seller bears risk until delivery to named terminal or destination.
Seller is responsible for freight costs of carriage to named terminal or destination.
The Seller bears the risk until delivery to named terminal or destination.

DAP: (Delivered at place)Freight: Seller must pay for freight costs to named place or destination.Risk: Seller bears risk until delivery to named place or destination and costs of unloading the goods at place and destination.Seller is responsible for freight costs of carriage to named terminal or destination.The seller bears the risk to the goods until delivery to named terminal or destination.

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