INCO Terms Details

2.10 INCO Terms Details

This topic provides the systematic instruction to maintain, specify and operate INCO Term Maintenance record.

INCOTERMS or International Commercial Terms indicate who will bear the freight, insurance and ancillary charges i.e. charges relating to an import or export consignment other than the cost of the goods/service. You can associate documents and clauses to INCO terms as part of a one-time maintenance for your bank. You can do this through the INCO Term Document Maintenance screen. They also determine which party will make arrangements to clear the goods from a port or airport. The INCO terms are given by the ICC.

Each INCO term is a three-letter code stating the responsibility of the seller i.e. the beneficiary in an LC. For instance ‘EXW’ states that the responsibility of the seller is limited to keeping the goods at his factory ready for export and it is the buyer’s responsibility to pick it up and arrange for onward freight and insurance. Under FOB the seller is responsible for securing export clearance and placing the goods on board a ship in his country. From that point on i.e. the cost relating to the freight, transit insurance and clearing the goods for import are the buyer’s responsibility. ‘CIF’ states that the seller is responsible for the freight/transport charges and insurance upto the point of destination. ‘DDP’ indicates that the seller has to take complete responsibility to arrange and pay for transport, insurance and export/import clearances. An INCO term is also specific to the mode of transport used. The terms FAS, FOB, CFR and CIF must only be used when the shipment mode is sea.

Specify the User ID and Password, and login to Homepage.

On the Homepage, type BCDINCOD in the text box, and click next arrow.

The Bills & Collections INCO Term Document Maintenance screen is displayed.

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For more information on the fields, refer the Field Description table given below:

Table 2-9 Bills & Collections INCO Term Document Maintenance - Field Description

Field	Description
INCO Term	Select the INCO Term from the option list. The following are the INCO terms for which you can maintain documents and clauses: EXW - EX Works FCA - Free Carrier FAS - Free Alongside Ship FOB - Free On-Board CFR - Cost and Freight CIF - Cost Insurance Freight CPT - Carriage Paid to CIP - Cost Insurance Paid DAF - Delivered at Frontier DES - Deliver Ex Ship DEQ - Delivered Ex Quay DDU - Delivered Duty Unpaid DDP - Delivered Duty Paid DPU- Delivered at Place Unloaded This field is mandatory.
Document Code	Select the Document Code from the option list. You need to associate a valid document to an INCO term. All valid document codes maintained (through the Bills and Collections Document Master Maintenance screen) in your current branch are made available here for selection. You can associate any number of valid documents to an INCO term. This field is mandatory.
Description	A brief description of the chosen document is displayed here. This field is optional.
Clause Code	To each document associated with an INCO Term, you need to associate a clause. The option list displays all clause codes maintained in through the Clause Maintenance screen. You can choose the appropriate one. To each document associated with an INCO Term, you can associate any number of clauses. This field is optional.
Description	A brief description of the chosen clause is displayed here. This field is optional.

On an existing INCO term maintenance record, you can perform the following operations (if any icon is disabled in the application toolbar, it means that the function is not allowed for the record):
1. Create a record
2. Unlock and amend the details of the record
3. Delete the record
During the Amend operation, you can amend the clause code only.
On the Actions menu, you can Create/Amend/Unlock/Delete a existing record.

Note:
Refer to the topic on Common Procedures for details of these operations.

Parent topic: LC Maintenance