Analyisis application Incoterms 2010

1. Analyisis application Incoterms 2010 1

2. EXW – Ex Works • General notes • The seller delivers the goods at the moment that he places the goods at the disposal of the buyer at the seller’s premises or at another named place • The seller does not need to load the goods on any collecting vehicle

3. Incoterms 2010 transport risks costs SELLER BUYER EXW 3

4. EXW – seller’s obligation • A1. General obligations of the seller • The seller must provide the goods and commercial invoice to the buyer • A2. Licences, authorizations, security clearances and other formalities • The seller must provide the buyer (at the buyers request, risk and expense) assitance in obtaining any export licence or other official authorization • The seller must provide at the buyer’s request risk and expense any information in the possession of the seller that is required for the security clearance of the goods ( obligation of prenotification of certain data – EXS as from January 1,2011) • Borealis will carry out export formalities and pre-notification of security data by means of “extended” export declaration submitted electronically in PLDA under the domiciliation procedure

5. EXW – seller’s obligation • A3. Contracts of carriage and insurance • Contract of carriage : seller has no obligation to make a contract of carriage • Contract of insurance: seller has no obligation to make a contract of insurance • A4. Delivery • The seller must deliver the goods by placing them at the disposal of the buyer at the agreed point not loaded on any collecting vehicle • The seller must deliver the goods on the agreed date or within the agreed period

6. EXW – seller’s obligation • A5. Transfer of risks • The seller bears all the risks of loss or damage to the goods untill they have been delivered in accordance with A4 (= seller delivers the goods by placing them at the disposal of the buyer at an agreed point. If the buyer fails to notice the seller about the time or period that the delivery will take place (B5 and B7) ( = the buyer bears all risks of loss or damage to the goods from athe agreed date or the expire date of the agreed period for delivery provided that the goods have been clearly identified as the contract goods • A6. Allocation of costs • The seller must pay all costs related to the goods untill they have been delivered in accordance with A4 (= seller delivers the goods by placing them at the disposal of the buyer at an agreed poin

7. EXW – seller’s obligation • A7. Notices to the buyer • The seller must give the buyer any notice needed to enable the buyer to take delivery of the goods • A8. Delivery document • The seller has no obligation to the buyer. • A9. Checking – packaging – marking • The seller must pay the costs of checking operations (quality, measuring, weighing) that are necessary for the purpose of delivering the goods in accordance with A4 • The seller must pack the goods and the packing is to be marked appropriately

8. EXW – seller’s obligation • A10. Assistance with information and related costs • The seller must (where applicable) in a timely manner, provide to or render assistance in obtaining for the buyer, at the buyer’s request, risk and expense, any documents and information (including security-related information) that the buyer needs for the export and/or import of the goods and/or for their transport to the final destination.

9. EXW – buyer’s obligation • B1. General obligations of the buyer • The buyer must pay the price of the goods as provided in the contract of sale • B2. Licences, authorizations, security clearances and other formalities • Where applicable, the buyer should obtain at its own risk and expense any export and import licence or official authorisation and carry out all customs formalities for the export of the goods.

10. EXW – buyer’s obligation • B3. Contracts of carriage and insurance • Contract of carriage : buyer has no obligation to make a contract of carriage • Contract of insurance : buyer has no obligation to make a contract of insurance • B4. Taking delivery • The buyer must take delivery of the goods when the seller has placed the goods at the disposal of the buyer (A4) and when the seller has noticed to the buyer to enable the buyer to take delivery of the goods (A7)

11. EXW – buyer’s obligation • B5. Transfer of risks • The buyer bears all the risks of loss or damage to the goods from the time they have been delivered as envisaged in A4 . If the buyer fails to notice the seller about the time or period that the delivery will take place (B7) => the buyer bears all risks of loss or damage to the goods from the agreed date or the expire date of the agreed period for delivery provided that the goods have been clearly identified as the contract goods • B6. Allocation of costs • The buyer must pay all costs related to the goods from the time they have been delivered in accordance with A4. • The buyer pay any additional costs incurred by failing to take delivery of the goods when they have been placed at the disposal of the buyer or to give appropriate notice in accordance with B7 • The buyer pay, where applicable, all duties taxes and other charges as well as the cost for the customs formalities at export and reimburse all costs and charged to the seller for the assistance provided as envisaged in A2 (= assistance to request for authorisations, licenses,...)

12. EXW – buyer’s obligation • B7. Notices to the seller • The buyer must give notice to the seller about the time within the agreed period when the take of delivery will take place • B8. Proof of delivery • The buyer must provide the seller with appropriate evidence of having taken delivery • B9. Inspection of goods • The buyer must pay the costs of any mandatory pre-shipment inspection, including inspection mandated by the authorities of the country of export

13. EXW – buyer’s obligation • B10. Assistance with information and related costs • The buyer must in a timely manner, advise the seller of any security information requirements so that the seller may comply with A10. • The buyer must reimburse the seller for all costs and charges incurred by the seller in providing or rendering assistance in obtaining documents and information as envisaged in A10 A10 = seller must provide assistance in obtaining at the buyer’s risk and expense any documents and information (including security related information that the buyer needs for the export/import of the goods and for their final transport to the final destination)

14. FCA – Free Carrier • General notes • The seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place • FCA requires the seller to clear the goods for export

15. Incoterms 2010 transport risks costs transport SELLER BUYER FCA 15

16. FCA – seller’s obligation • A1. General obligations of the seller • The seller must provide the goods and commercial invoice to the buyer • A2. Licences, authorizations, security clearances and other formalities • The seller must obtain at its own risk and expence any export licence or other official authorization and carry out all customs formalities necessary for the export of the goods

17. FCA– seller’s obligation • A3. Contracts of carriage and insurance • Contract of carriage : seller has no obligation to make a contract of carriage. However if requested by the buyer or the buyer did not give instructions in time for the carriage of the goods, the seller may contract for carriage on usual terms at the buyer’s risk and expense • Contract of insurance : seller has no obligation to make a contract of insurance but must provide to the buyer (at the buyer’s request) with information that the buyer needs for obtaining an insurance. • A4. Delivery • The seller must deliver the goods to the carrier or another person nominated by the buyer at the agreed point (at the named place on the agreed date or within the agreed period). • Delivery is completed : • If the named place is the seller’s premises (when the goods have been loaded on the means of transport provided by the buyer) • In any other case, when the goods are placed at the disposal of the carrier or another person nominated by the buyer on the seller’s means of trensport ready for unloading

18. FCA – seller’s obligation • A5. Transfer of risks • The seller bears all the risks of loss or damage to the goods untill they have been delivered in accordance with A4 with exeption of loss or damage in the circumstances described in B5 (if the buyer fails to notify the nomination of a carrier or another person or the buyer fails to take the goods into its charge => then the buyer bear all risks of loss or damage of the goods : • From the agreed date, or in the absence of an agreed date, from the date notified by the seller under A7 within the agreed period or if no such date has been notified from the expiry date of any agreed period for delivery (provided that the goods have been clearly identified as the contract goods). • A6. Allocation of costs • The seller must pay all costs related to the goods untill they have been delivered in accordance with A4 (these costs include export formalities, taxes and other charges upon export)

19. FCA – seller’s obligation • A7. Notices to the buyer • The seller must at the buyers risk give the buyer sufficient notice either that the goods have been deliverd in accordance with A4 or that the carrier or another person nominated by the buyer has failed to take the goods withim the time agreed • A8. Delivery document • The seller must provide to the buyer (at the seller’s expense) with the usual proof that the goods have been delivered in accordance with A4 • The seller must provide assistance to the buyer (at the buyer’s request, risk and expense, in obtaining a transport document) • A9. Checking – packaging – marking • The seller must pay the costs of checking operations (quality, measuring, weighing) that are necessary for the purpose of delivering the goods in accordance with A4 (as well as the costs of any pre-shipment inspection mandated by the authority of the country of export. • The seller must pack the goods (eventually according to the specifiactions of the buyer ) and the packing is to be marked appropriately

20. FCA – seller’s obligation • A10. Assistance with information and related costs • The seller must (where applicable) in a timely manner, provide to or render assistance in obtaining for the buyer, at the buyer’s request, risk and expense, any documents and information (including security-related information) that the buyer needs for the export and/or import of the goods and/or for their transport to the final destination. • The seller must reimburse the buyer for all costs and charges incurred by the buyer in providing or rendering assistance in obtaining documents and information as envisaged in B10 B10 = the buyer where applicable should render assistance in obtaining for the seller any documents and security related information that the seller needs for the transport and export of the goods and for their transport through any country

21. FCA – buyer’s obligation • B1. General obligations of the buyer • The buyer must pay the price of the goods as provided in the contract of sale • B2. Licences, authorizations, security clearances and other formalities • Where applicable, the buyer should obtain at its own risk and expense any export and import licence or official authorisation and carry out all customs formalities for the import of the goods in the country of import .

22. FCA – buyer’s obligation • B3. Contracts of carriage and insurance • Contract of carriage : buyer must contract at its own expense for the carriage of the goods from the named place of delivery (except when the contract of carriage is made by the seller as provided for in A3 a) • Contract of insurance : buyer has no obligation to make a contract of insurance • B4. Taking delivery • The buyer must take delivery of the goods when they have been delivered as envisaged in A4

23. FCA – buyer’s obligation • B5. Transfer of risks • The buyer bears all the risks of loss or damage to the goods from the time they have been delivered as envisaged in A4 . If the buyer fails to notify the nomination of a carrier or to give notice or the carrier nominated by the buyer fails to take the goods into its charge the seller => the buyer bears all risks of loss or damage to the goods from the agreed date or in absence of an agreed date, from the date notified by the seller under A7 within the agreed period or if no such date has been notified from the expiry date of any agreed period for delivery provided that the goods have been clearly identified as the contract goods • B6. Allocation of costs • The buyer must pay all costs related to the goods from the time they have been delivered in accordance with A4 (except costs for customs formalities upon export as well as other duties and taxes payable upon export as referred to in A6 b). (A6 b) = costs for export formalities ) • The buyer pay any additional costs incurred by failing to nominate a carrier as envisaged in A4 or the carrier fails to take the goods into charge or the buyer has failes to give apropriate notice in accordance with B7

24. FCA – buyer’s obligation • B7. Notices to the seller • The buyer must give notice to the seller about • The name of the carrier or another person nominated as envisaged in A4 • The selected time within the period agreed for delivery when the carrier or person nominated will take the goods • The mode of transport • The point of taking delivery within the named place • B8. Proof of delivery • The buyer must accept the proof of delivery provided as envisaged in A8 • B9. Inspection of goods • The buyer must pay the costs of any mandatory pre-shipment inspection, including inspection mandated by the authorities of the country of export

25. FCA – buyer’s obligation • B10. Assistance with information and related costs • The buyer must in a timely manner, advise the seller of any security information requirements so that the seller may comply with A10. • The buyer must reimburse the seller for all costs and charges incurred by the seller in providing or rendering assistance in obtaining documents and information as envisaged in A10 • The buyer must, where applicable, in an timely manner, provide or render assistance in obtaining for the seller, at the seller’s request, risk and expense, any documents and information, including security-related information, that the seller needs for the transport of the goods and for their transport through any country.

26. CPT – Carriage Paid To • General notes • Seller delivers the goods to the carrier or another person nominated by the seller at an agreed place • Seller must contract and pay carriage to bring the goods to the named place of destination Remark: This rule has 2 critical points because risk passes and costs are transferred at different places

27. Incoterms 2010 transport risks costs SELLER BUYER CPT 27

28. CPT – seller’s obligation • A1. General obligations of the seller • The seller must provide the goods and commercial invoice to the buyer • A2. Licences, authorizations, security clearances and other formalities • The seller must obtain at its own risk and expence any export licence or other official authorization and carry out all customs formalities necessary for the export of the goods and for their transport through any country prior to delivery

29. CPT– seller’s obligation • A3. Contracts of carriage and insurance • Contract of carriage : seller must contract or procure a contract of carriage from the agreed point of delivery untill the named place of destination. The seller may select the point of delivery and the point at the named place of destination that best suits. • Contract of insurance : seller has no obligation to make a contract of insurance but must provide to the buyer (at the buyer’s request) with information that the buyer needs for obtaining an insurance. • A4. Delivery • The seller must deliver the goods by handing them over to the carrier contracted in accordance with A3 on the agreed date or within the agreed period.

30. CPT– seller’s obligation • A5. Transfer of risks • The seller bears all the risks of loss or damage to the goods untill they have been delivered in accordance with A4 with exeption of loss or damage in the circumstances described in B5 B5 = If the buyer fails to give notice (in accordance with B7) it must bear all risks of loss and damage from the agreed date or the expiry date of the agreed period for delivery. • A6. Allocation of costs • The seller must pay all costs related to the goods untill they have been delivered in accordance with A4 (other than those payable by the buyer as envisaged in B6 ). B6 = costs of export formalities, costs during transit untill their arrival at the agreed place of destination, unloading costs, customsformalities upon import of the goods and the costs for their transport through any country). • The seller must pay the freight and other costs resulting from A3 a), including the costs of loading the goods and any charges for unloading at the place of destination • The seller must pay where applicable, the costs of customs formalities necessary for export and the costs for the transport through any country that were for the seller’s account under the contract of carriage

31. CPT – seller’s obligation • A7. Notices to the buyer • The seller must notify the buyer that the goods have been delivered in accordance with A4. • The seller must give the buyer any notice needed in order to allow the buyer to take measures that are normally necessary to enable the buyer to take the goods. • A8. Delivery document • The seller must provide to the buyer (at the seller’s expense) with the usual transport document for the transport contracted in accordance with A3. This transport document must cover the contract goods and be dated within the period of the agreed shipment. The transport document must enable the buyer to claim the goods from the carrier at the named place of destination and enable the buyer to sell the goods in transit by the transfer of the document to a subsequent buyer or by notification of the carrier. • A9. Checking – packaging – marking • The seller must pay the costs of checking operations (quality, measuring, weighing) that are necessary for the purpose of delivering the goods in accordance with A4 (as well as the costs of any pre-shipment inspection mandated by the authority of the country of export. • The seller must pack the goods (eventually according to the specifications of the buyer ) and the packing is to be marked appropriately

32. CPT – seller’s obligation • A10. Assistance with information and related costs • The seller must (where applicable) in a timely manner, provide to or render assistance in obtaining for the buyer, at the buyer’s request, risk and expense, any documents and information (including security-related information) that the buyer needs for the export and/or import of the goods and/or for their transport to the final destination. • The seller must reimburse the buyer for all costs and charges incurred by the buyer in providing or rendering assistance in obtaining documents and information as envisaged in B10

33. CPT – buyer’s obligation • B1. General obligations of the buyer • The buyer must pay the price of the goods as provided in the contract of sale • B2. Licences, authorizations, security clearances and other formalities • Where applicable, the buyer should obtain at its own risk and expense any export and import licence or official authorisation and carry out all customs formalities for the import of the goods in the country of import and for their transport through any country.

34. CPT – buyer’s obligation • B3. Contracts of carriage and insurance • Contract of carriage: buyer has no obligation to the seller to make a contract of carriage • Contract of insurance : buyer has no obligation to make a contract of insurance • B4. Taking delivery • The buyer must take delivery of the goods when they have been delivered as envisaged in A4 and recieve them from the carrier at the named place of destination

35. CPT– buyer’s obligation • B5. Transfer of risks • The buyer bears all the risks of loss or damage to the goods from the time they have been delivered as envisaged in A4 . If the buyer fails to give notice in accordance with B7, it must bear all risks of loss or damage to the goods from the agreed date or the expiry date of the agreed period for delivery, provided that the goods have been identified as the contract goods • B6. Allocation of costs • The buyer must pay all costs related to the goods from the time they have been delivered in accordance with A4 (except costs for customs formalities upon export as well as other duties and taxes payable upon export as referred to in A6 b) . • The buyer pay all costs and charges related to the goods while in transit untill their arrival at the agreed place of destination, unless such costs and charges were for the seller’s account under the contract of carriage • The buyer pays for the unloading costs, unless such costs were for the seller’s account under the contract of carriage • The buyer pays any additional costs incurred if the buyer fails to give notice in accordance with B7, from the agreed date or the expiry date of the agreed period of dispatch. • The buyer pays where applicable all duties, taxes, charges as well as carrying out customs formalities payable upon import of the goods and the costs for their transport through any country unless included within the cost of the contract of carriage

36. CPT – buyer’s obligation • B7. Notices to the seller • The buyer must whenever it is entitled to determine the time for dispatching the goods and/or the named place of destination or the point of receiving the goods within that place, give the seller sufficient notice thereof • B8. Proof of delivery • The buyer must accept the proof of delivery provided as envisaged in A8 • B9. Inspection of goods • The buyer must pay the costs of any mandatory pre-shipment inspection, exeptwhen such inspection is mandated by the authorities of the country of export

37. CPT – buyer’s obligation • B10. Assistance with information and related costs • The buyer must in a timely manner, advise the seller of any security information requirements so that the seller may comply with A10. • The buyer must reimburse the seller for all costs and charges incurred by the seller in providing or rendering assistance in obtaining documents and information as envisaged in A10 • The buyer must, where applicable, in an timely manner, provide or render assistance in obtaining for the seller, at the seller’s request, risk and expense, any documents and information, including security-related information, that the seller needs for the transport of the goods and for their transport through any country.

38. CIP – Carriage and Insurance Paid To • General notes • Seller delivers the goods to the carrier or another person nominated by the seller at an agreed place • Seller must contract and pay carriage to bring the goods to the named place of destination • Seller also contracts for insurance cover against the buyer’s risk of loss or damage of the goods during the carriage (the seller is required to obtain insurance for miminum cover. Should the buyer wish to have more insurance protection, it wil need either to agree as much expressly with the seller or to make its own extra insurance arrangements Remark: This rule has 2 critical points because risk passes and costs are transferred at different places

39. Incoterms 2010 transport + verzekering risico kosten SELLER BUYER CIP 39

40. CIP – seller’s obligation • A1. General obligations of the seller • The seller must provide the goods and commercial invoice to the buyer • A2. Licences, authorizations, security clearances and other formalities • The seller must obtain at its own risk and expence any export licence or other official authorization and carry out all customs formalities necessary for the export of the goods and for their transport through any country prior to delivery

41. CIP– seller’s obligation • A3. Contracts of carriage and insurance • Contract of carriage : seller must contract or procure a contract of carriagefrom the agreed point of delivery untill the named place of destination. The seller may select the point of delivery and the point at the named place of destination that best suits. • Contract of insurance : seller must obtain at its own expense cargo insurance complying at least the minimum cover as provided by Clauses (C) of the Institute Cargo Clauses (LMA/IUA) oe any similar clauses. The insurance shall cover, at a minimum the price provided in the contract plus 10% (i.e. 110%) and shall be in the currency of the contract. • A4. Delivery • The seller must deliver the goods by handing them over to the carrier contracted in accordance with A3 on the agreed date or within the agreed period.

42. CIP– seller’s obligation • A5. Transfer of risks • The seller bears all the risks of loss or damage to the goods untill they have been delivered in accordance with A4 with exception of loss or damage in the circumstances described in B5 B5 = If the buyer fails to give notice in accordance with B7, it must bear all risks of loss or damage to the goods from the agreed date or the expiry date of the agreed period for delivery, provided that the goods have been identified as the contract goods • A6. Allocation of costs • The seller must pay all costs related to the goods untill they have been delivered in accordance with A4 (other than those payable by the buyer as envisaged in B6 ) • The seller must pay the freight and other costs resulting from A3 a), including the costs of loading the goods and any charges for unloading at the place of destination • The seller must pay the costs of insurance resulting from A3 b) • The seller must pay where applicable, the costs of customs formalities necessary for export and the costs for the transport through any country that were for the seller’s account under the contract of carriage

43. CIP – seller’s obligation • A7. Notices to the buyer • The seller must notify the buyer that the goods have been deliverd in accordance with A4. • The seller must give the buyer any notice needed in order to allow the buyer to take measures that are normally necessary to enable the buyer to take the goods. • A8. Delivery document • The seller must provide to the buyer (at the seller’s expense) with the usual transport document for the transport contracted in accordance with A3. This transport document must cover the contract goods and be dated within the period of the agreed shipment. The transport document must enable the buyer to claim the goods from the carrier at the named place of destination and enable the buyer to sell the goods in transit by the transfer of the document to a subsequent buyer or by notification of the carrier. • A9. Checking – packaging – marking • The seller must pay the costs of checking operations (quality, measuring, weighing) that are necessary for the purpose of delivering the goods in accordance with A4 (as well as the costs of any pre-shipment inspection mandated by the authority of the country of export. • The seller must pack the goods (eventually according to the specifications of the buyer ) and the packing is to be marked appropriately

44. CIP – seller’s obligation • A10. Assistance with information and related costs • The seller must (where applicable) in a timely manner, provide to or render assistance in obtaining for the buyer, at the buyer’s request, risk and expense, any documents and information (including security-related information) that the buyer needs for the export and/or import of the goods and/or for their transport to the final destination. • The seller must reimburse the buyer for all costs and charges incurred by the buyer in providing or rendering assistance in obtaining documents and information as envisaged in B10

45. CIP – buyer’s obligation • B1. General obligations of the buyer • The buyer must pay the price of the goods as provided in the contract of sale • B2. Licences, authorizations, security clearances and other formalities • Where applicable, the buyer should obtain at its own risk and expense any export and import licence or official authorisation and carry out all customs formalities for the import of the goods in the country of import and for their transport through any country.

46. CIP– buyer’s obligation • B3. Contracts of carriage and insurance • Contract of carriage : buyer has no obligation to the seller to make a contract of carriage • Contract of insurance : buyer has no obligation to make a contract of insurance. However the buyer must provide the seller, upon request, with any information necessary for the seller to procure any additional insurance requested by the buyer as envisaged in A3 b) • B4. Taking delivery • The buyer must take delivery of the goods when they have been deliverd as envisaged in A4 and recieve them from the carrier at the named place of destination

47. CIP– buyer’s obligation • B5. Transfer of risks • The buyer bears all the risks of loss or damage to the goods from the time they have been delivered as envisaged in A4 . If the buyer fails to give notice in accordance with B7, it must bear all risks of loss or damage to the goods from the agreed date or the expiry date of the agreed period for delivery, provided that the goods have been identified as the contract goods • B6. Allocation of costs • The buyer must pay all costs related to the goods from the time they have been delivered in accordance with A4 (except costs for customs formalities upon export as well as other duties and taxes payable upon export as referred to in A6 b) . • The buyer pay all costs and charges related to the goods while in transit untill their arrival at the agreed place of destination, unless such costs and charges were for the seller’s account under the contract of carriage • The buyer pays for the unloading costs, unless such costs were for the seller’s account under the contract of carriage • The buyer pays any additional costs incurred if the buyer fails to give notice in accordance with B7, from the agreed date or the expiry date of the agreed period of dispatch. • The buyer pays where applicable all duties, taxes, charges as well as carrying out customs formalities payable upon import of the goods and the costs for their transport through any country unless included within the cost of the contract of carriage • The buyer pays the costs of additional insurance procured at the buyer’s request under A3 and B3

48. CIP – buyer’s obligation • B7. Notices to the seller • The buyer must whenever it is entitled to determine the time for dispatching the goods and/or the named place of destination or the point of receiving the goods within that place, give the seller sufficient notice thereof • B8. Proof of delivery • The buyer must accept the proof of delivery provided as envisaged in A8 • B9. Inspection of goods • The buyer must pay the costs of any mandatory pre-shipment inspection, exceptwhen such inspection is mandated by the authorities of the country of export

49. CIP – buyer’s obligation • B10. Assistance with information and related costs • The buyer must in a timely manner, advise the seller of any security information requirements so that the seller may comply with A10. • The buyer must reimburse the seller for all costs and charges incurred by the seller in providing or rendering assistance in obtaining documents and information as envisaged in A10 • The buyer must, where applicable, in an timely manner, provide or render assistance in obtaining for the seller, at the seller’s request, risk and expense, any documents and information, including security-related information, that the seller needs for the transport of the goods and for their transport through any country.

50. DAT – Delivered at Terminal • General notes • The seller delivers when the goods once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. “Terminal” includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal to the carrier or another person nominated by the seller at an agreed place • The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.