The word " Logistics" is drawn from the French word ' Loger'. It is military term which means the art of transport, supply and quartering of troops. The association of this term with trade in general and international trade in particular pinpoints to the need of working out a strategy for managing the flow of raw materials and finished products from the source of origin to the ultimate user with time and cost efficiency.
Logistics management includes the tasks involved in planning,implementing and controlling the physical flow of raw materials and finished goods from the point of origin to point of use to meet the needs of consumers and end users.
Thus such activities are concerned with the creation of time and place utility and thereby adding to the intrinsic value of the product.
Sunday, January 29, 2012
Tuesday, January 24, 2012
DUTIES OF SELLER ACCORDING TO INCOTERM 2010
| SR. No | Terms | Loading on truck (carrier) | Export-Customs Clearance | Carriage to POL | Unloading of truck in POL | Loading charges in POL | Carriage to POD | Unloading charges in POD | Loading on truck in POD | Carriage to place of destination | Insurance | Import customs clearance | Import taxes |
| 1 | EXW | No | No | No | No | No | No | No | No | No | No | No | No |
| 2 | FCA | Yes | Yes | Yes | No | No | No | No | No | No | No | No | No |
| 3 | FAS | Yes | Yes | Yes | Yes | No | No | No | No | No | No | No | No |
| 4 | FOB | Yes | Yes | Yes | Yes | Yes | No | No | No | No | No | No | No |
| 5 | CFR | Yes | Yes | Yes | Yes | Yes | Yes | No | No | No | No | No | No |
| 6 | CIF | Yes | Yes | Yes | Yes | Yes | Yes | No | No | No | Yes | No | No |
| 7 | DAT | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | No | No | No | No |
| 8 | DAP | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | No | No |
| 9 | CPT | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | No | No |
| 10 | CIP | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | No |
| 11 | DDP | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | Yes | Yes |
TERMS ELIMATINATED FROM INCOTERM 2000
1. DAF – Delivered At Frontier (Named place of delivery)
2. DES – Delivered Ex Ship (Named port of delivery)
3. DEQ – Delivered Ex Quay (Named port of delivery)
4. DDU – Delivered Duty Unpaid (Named place of destination)
Monday, January 16, 2012
INCOTERMS are not law”
INCOTERMS are not law”Whatever is written and agreed to in the CONTRACT shall be the true terms.
Incoterms do not cover title transfer; they deal with risk of loss.The contract is legally binding & would override the Inco- term rule.
Title transfer is quite a separate issue from transfer of risk. It is possible to remain "on risk" at a given point in the journey without having title to the goods(and vice versa)
The Incoterms rules intentionally remain silent on the matter of title, because they are rules,not laws, and title to goods is a legal concept - there are all sorts of subtle differences between the treatment of title in different legal systems.
So the matter of title needs to be addressed in the commercial agreement, which should Also specify the applicable law.
Incoterms do not cover title transfer; they deal with risk of loss.The contract is legally binding & would override the Inco- term rule.
Title transfer is quite a separate issue from transfer of risk. It is possible to remain "on risk" at a given point in the journey without having title to the goods(and vice versa)
The Incoterms rules intentionally remain silent on the matter of title, because they are rules,not laws, and title to goods is a legal concept - there are all sorts of subtle differences between the treatment of title in different legal systems.
So the matter of title needs to be addressed in the commercial agreement, which should Also specify the applicable law.
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