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Need for correct Incoterm usage can't be overstated, says expert

Incoterms clearly define the obligations of the seller and buyer, when the risk passes from seller to buyer and who bears what costs

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3 min read Last Updated : Oct 22 2019 | 3:28 AM IST

Q. We have been using the Incoterms FOB, CIF and CFR for all modes of transport, without any problem. Now, in your article ‘Revised Incoterms take effect from Jan’ (Business Standard, October 14, 2019), you say that the terms FAS, FOB, CFR and CIF should be used only for transport by water from port to port, whether through ocean-going vessels, river barges or a combination, and that these terms should not be used for container shipment (even if carried by ships), other modes of transport (e.g. air or road) or multi-modal transport, for which other terms such as FCA, CIP,

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