Before learning Incoterms, let's see what are the steps involved in selling heathrow duty free and b

When I completed my MBA, I thought heathrow duty free I'll write a study material about INCOTERMS 2000 and INCOTERMS 2010 in a blog so that it can help others who would like to learn about it. But, its been one year since I completed my MBA and I was lazy to do that. Now, its time for me to have a change in my career and was refreshing my knowledge in Supply Chain Management. And came across INCOTERMS. So I thought  of writing it atleast now. 
INCOTERMS 2000 : Short form of IN ternationals CO mmercial TERMS. Also, called as Shipping Terms. It is updated by ICC - International Chamber of Commerce, Started in Paris in the year 1919. The First Incoterms were heathrow duty free brought forward by Europeans in 1936. Americans came up with NAFTA Terms to compete with ICC. NAFTA terms are also trade terms. But ICC's Incoterms are more popular.  LC ( Letter of Credit), Incoterms and all other trading terms are under the control of ICC. Incoterms are fixed depending ion demand, market, trend, company's goodwill, etc. Incoterms heathrow duty free is just one line in LC. 
As you know, for every trade, there is an exporter who sell their item. And there is an importer heathrow duty free who buy the item. You have to read incoterms from the view of exporter - as if exporter is talking to importer. All Incoterms are abbreviated with 3 letters. And it starts with C, D, E or F. 
Before learning Incoterms, let's see what are the steps involved in selling heathrow duty free and buying of an item.  After the sale contract is done and accepted by both the parties, the exporter packs goods which are to be sold. And keeps it in their premises. These packed goods are loaded in the truck (any carrier vehicle) which is the exporter's premises. The goods are taken to the port. (For road shipment, this is not there) Goods Export clearance is done. Export duty paid. The goods are kept inside the vessel. This is called as wharfage. Wharfage can be loading goods in to the vessel or offloading from the vessel.
a. The cost of freight (does not include loading\offloading, etc), b. The cost of insurance. The goods are to be off-loaded from the ship. (Wharfage). Import clearance of goods done. Import heathrow duty free duty charges has to be paid.  Load the goods in truck and take it to the Importer's heathrow duty free premises. 
This term is in both Incoterms 2000 and Incoterms 2010. From Factory, it's the buyer's responsibility. The exporter packs goods and keep in his factory. All other activities are done by importer.  Mostly the demand for these goods are high, and the importer (buyer) takes the responsibility of freight, loading, offloading, etc. 2. FCA - Free Carrier :  This is there in both  Incoterms 2000  and  Incoterms 2010. Exporter packs goods, and loads it to the truck from exporter's premises.  Rest all done by the importer. Next two incoterms, i.e. FAS and FOB are exclusively for Sea Shipment. (The exclusive Sea shipment terms are highlighted here) 3. FAS - Free Alongside Ship : This term is in both  Incoterms 2000  and  Incoterms 2010. Exporter packs goods, takes it to the port, does the clearance and keep it near the vessel. The exporter does not load the goods in to the vessel. 4. FOB - Free On Board : This is there in both  Incoterms 2000  and  heathrow duty free Incoterms 2010. This is one of the mostly used Incoterm.  Exporter takes the responsibility from packing till all goods are loaded in to the vessel. Importer need not take care of the steps (including clearance or loading) involved in exporter's country.   FOB = FAS + Wharfage (loading) ______________________________________ Now let's see the Incoterms that start with letter 'C'. These incoterms do not talk about loading, offloading, import clearance, etc. These are just about cost of the fright and insurance of moving goods. heathrow duty free The next 2 terms (CFR and CIF) are exclusively for sea shipment like FAS and FOB. Sea shipment is given more importance as 90% of traded goods are moved through sea.  5. CFR - Cost And Freight : This is there in both  Incoterms 2000  and  heathrow duty free Incoterms 2010. Popularly called as C&F. Used only in Sea Shipment. The freight charges from exporter's port to the importer's port (destination) is paid by the exporter. As mentioned earlier, the Incoterms starting with letter 'C' are not associated with any loading, offloading, clearance, etc. 6. CIF - Cost Insurance and Freight : This is there in both  Incoterms 2000  and  Incoterms 2010. Used only in Sea Shipment. Exporter takes care of (pays for) the freight and insurance cost from source to destination. Insurance is mandatory for all shipments. In CIF, exporter pays for insurance, otherwise, importer pays. 7. CPT - Carriage Paid To : This is there in both  Incoterms 2000  and  Incoterms 2010. Similar to CFR, but used for other means of transport, like, road, rail, air, etc. Only Freight charges are paid by the exporter. 8. CIP - Carriage