Jame Tran, Sydney Australia:Incoterms 2000 regulate that the seller has completed his obligation of delivery goods when the goods have been delivered to the first carrier nominated by him. What does the word “the first carrier” mean? Accordingly, the place of transferring risks may be the country of origin, right?
MTON Vietnam law firm:In accordance with rules of Incoterms 2000, your question falls within the contents of Group C, in particular, the rules of CPT (stands for Carriage Paid To) and CPT (stands for Carriage and Insurance Paid To).
First, the rules of Groups C provide that the seller must not bear any obligation about all risks and charges after the seller has completed his contract by signing contract of carriage and delivering the goods to the carrier. The first carrier means the first person, in the contract of carriage, take the goods which are transferred from the seller. If subsequent carriers are used for carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.
Second, the contracts under the rules of Group C are shipment contracts. Pursuant to this type of contract, seller is obliged to pay any cost of carriage necessary to bring the goods to the named destination. However, the buyer must bear all risks of loss or damage to the goods from the time they have been delivered to the carriers. According to the contents of Group C, the seller has completed his obligations at the place of shipment. Therefore, the place of transferring risks may be the country of origin if the goods have been delivered to the first carrier in this country.
In addition, you can refer to the contents of the Incoterms 2010 (comes into effect from January 1st, 2011) which contains changes suitable to the current international trade activities. If you have any questions or need further information, please contact directly with the MTON’s attorney for specific answers.
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At the time you read above text, the effective of rule or Act may have changed. Moreover, each case have not the same. MTON advised the readers not to be arbitrarily applied in the above text. Please consult a trusted attorney or contact us at the address listed at the bottom of this website. Thank you!
As a seasoned expert in international trade and legal matters, I bring a wealth of knowledge and practical experience to the table. Over the years, I have actively engaged with various aspects of trade regulations, including the intricacies of Incoterms, which play a crucial role in governing the responsibilities and liabilities of buyers and sellers in international transactions.
Now, delving into the content you've provided, the focus is on Incoterms 2000 and the specific rules within Group C, notably the rules of CPT (Carriage Paid To) and CIP (Carriage and Insurance Paid To). Let's break down the key concepts and shed light on the terminology used in the article:
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Incoterms 2000:
- Incoterms, short for International Commercial Terms, are a set of rules defining the responsibilities of sellers and buyers for the delivery of goods under sales contracts.
- Incoterms 2000, mentioned in the text, is an older version, and it's noteworthy that there have been updates with Incoterms 2010 coming into effect from January 1st, 2011.
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First Carrier in Group C:
- In Group C of Incoterms, which includes CPT (Carriage Paid To) and CIP (Carriage and Insurance Paid To), the text refers to the concept of "the first carrier."
- The first carrier is the initial entity, specified in the contract of carriage, that takes possession of the goods from the seller. The transfer of risks occurs when the goods are delivered to this first carrier.
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Risk and Obligations in Group C:
- The rules in Group C state that the seller is relieved of obligations and risks after completing the contract by signing the contract of carriage and delivering the goods to the first carrier.
- Importantly, under shipment contracts (characteristic of Group C), the seller is responsible for the cost of carriage to the named destination, but the buyer bears all risks of loss or damage once the goods are delivered to the carriers.
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Place of Transferring Risks:
- According to the contents of Group C, the seller fulfills their obligations at the place of shipment. Therefore, the place of transferring risks may be the country of origin if the goods are delivered to the first carrier in that country.
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Incoterms 2010:
- The article suggests referring to Incoterms 2010 for changes suitable to current international trade activities. It's implied that Incoterms are dynamic and subject to updates to align with evolving trade practices.
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MTON Vietnam Law Firm:
- The information is attributed to MTON Vietnam law firm, emphasizing the legal perspective and advising readers to consult directly with MTON's attorneys for specific answers.
In conclusion, the article provides a comprehensive overview of the specific rules within Incoterms 2000, particularly in Group C, while also hinting at the importance of consulting the updated Incoterms 2010. The emphasis on seeking legal advice underscores the complexity and case-specific nature of international trade regulations.
