Does incoterms can be used to refer the ownership transfer of goods?

[Former Member]

Define Incoterms?

[Former Member · Accepted solution]

Hi,

Incoterms are some standards defined and designed by International chambers of commerce for international shipping transactions.

Basically this are framed internationally with standard procedures for the shipping party and for the receiving party across all the countries

for ex. FOB- frieght on board( frieght to be paid before loading)

or CIF - Cost , insurance and freight are all paid till the port of receiving party.

This is only a procedure but for ownership u need to have shipping doc/LR/Bill of lading etc. which can form proof of delivery.

I hope this is clear

Regards

Mahesh

[Former Member · Accepted solution]

Thanks Mahesh

[Former Member · Accepted solution]

hi,

Incoterms are used for export scenarios and doesn't refer to any ownership of goods. For ownership you still have to create the necessary documents like shipping docs..etc.

Incoterms are just referred to determine freight chargeslike ( FOB , CIF, DDP).

Hope it helps.

[Former Member]

INternational COmmercial TERMS - Codification of international rules for the interpretation of the most commonly used terms in international trade. They define the terms of sale and the passing of risks for import and export of merchandise

Incoterms are the internationally recognized shipping terms that establish the respective liabilities of both the shipping party and the recipient. For example, a common shipping term is FOB (Free on board). The term can be further qualified by adding the loading port, for example, FOB Boston.

You can create condition records either:

Based solely on the first part of the Incoterm (for example, FOB)

Based on the combination of parts 1 and 2 (for example, FOB and Boston)

Freight Conditions

Freight condition type KF00 applies to each item in a sales document. During automatic pricing, the system searches for valid condition records that apply to this freight condition.

Freight condition type HD00 can only be applied to an entire document. You enter this freight manually during sales order processing.