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International Maritime Dangerous Goods (IMDG)
Classes Class 1 - Explosives
1.1 Substances and articles which have a mass explosion hazard.
1.2 Substances and articles which have a projection hazard but
not a mass
1.3 Substances and articles which have a fire hazard and either
a minor blast hazard or a minor projection hazard or both,
but not a mass explosion hazard.
1.4 Substances and articles which present no significant hazard.
1.5 Very insensitive substances which have a mass explosion hazard.
1.6 Extremely insensitive articles which do not have a mass explosion.
Class 2 - Gases: Compressed, Liquefied or Dissolved under Pressure
2.1 Flammable gases
2.2 Non-Flammable gases
2.3 Toxic gases
Class 3 - Flammable Liquids
Class 4 - Flammable Solids or Substances
4.1 Flammable solids
4.2 Substances liable to spontaneous combustion
4.3 Substances which, in contact with water, emit flammable gases
INCOTERM DEFINITIONS / CHANGES
The 11 Incoterms consist of two groups and are listed below in order of increasing risk/liability to the exporter. Under the revised terms, buyers and sellers are being urged to contract precisely where delivery is made and what charges are covered. This should avoid double-billing of terminal handling charges at the port of discharge. References to “ship’s rail” were taken out to clarify that delivery means “on-board” the vessel. Insurance, electronic documentation, and supply chain security are addressed in more detail, and gender-neutral language is now used.
Rules for Sea and Inland Waterway Transport
FAS - Free Alongside Ship
Risk passes to buyer, including payment of all transportation and insurance costs, once delivered alongside the ship (realistically at named port terminal) by the seller. The export clearance obligation rests with the seller.
FOB - Free On Board
Risk passes to buyer, including payment of all transportation and insurance costs, once delivered on board the ship by the seller.
A step further than FAS.
CFR - Cost and Freight
Seller delivers goods and risk passes to buyer when on board
the vessel. Seller arranges and pays cost and freight to the named destination port. A step further than FOB.
CIF - Cost, Insurance and Freight
Risk passes to buyer when delivered on board the ship.
Seller arranges and pays cost, freight and insurance to destination port. Adds insurance costs to CFR.
Rules for Any Mode or Modes of Transportation
EXW - Ex Works
Seller delivers (without loading) the goods at disposal of buyer at seller’s premises. Long held as the most preferable term for those new-to-export because it represents the minimum liability to the seller. On these routed transactions, the buyer has limited obligation to provide export information to the seller.
FCA - Free Carrier
Seller delivers the goods to the carrier and may be responsible for clearing the goods for export (filing the EEI). More realistic than EXW because it includes loading at pickup, which is commonly expected, and sellers are more concerned about export violations.
CPT - Carriage Paid To
Seller delivers goods to the carrier at an agreed place, shifting risk to the buyer, but seller must pay cost of carriage to the named place of destination.
CIP - Carriage and Insurance Paid To
Seller delivers goods to the carrier at an agreed place, shifting risk to the buyer, but seller pays carriage and insurance to the named place of destination.
DAT - Delivered at Terminal
Seller bears cost, risk and responsibility until goods are unloaded (delivered) at named quay, warehouse, yard, or terminal at destination. Demurrage or detention charges may apply to seller. Seller clears goods for export, not import. DAT replaces DEQ, DES.
DAP - Delivered at Place
Seller bears cost, risk and responsibility for goods until
made available to buyer at named place of destination. Seller clears goods for export, not import. DAP replaces DAF, DDU.
DDP - Delivered Duty Paid
Seller bears cost, risk and responsibility for cleared
goods at named place of destination at buyers disposal. Buyer is responsible for unloading. Seller is responsible
for import clearance, duties and taxes so buyer is not “importer of record”.
INCOTERMS DO NOT…
Determine ownership or transfer title to the goods, nor evoke payment terms. Apply to service contracts, nor define contractual rights or obligations (except for delivery) or breach of contract remedies. Protect parties from their own risk or loss, nor cover the goods before or after delivery. Specify details of the transfer, transport, and delivery of the goods. Container loading is NOT considered packaging, and must be addressed in the sales contract. Remember, Incoterms are not law and there is NO default Incoterm!
Class 5 - Oxidizing Substances (agents) and
5.1 Oxidizing substances (agents) by yielding oxygen
increase the risk and intensity of fire
5.2 Organic peroxides - most will burn rapidly and are
sensitive to impact or friction
Class 6 - Toxic and infectious Substances
6.1 Toxic substances
6.2 Infectious substances
Class 7 - Radioactive Substances
Class 8 - Corrosives
Class 9 - Miscellaneous dangerous substances and
articles NOTE 1
MHB - Materials hazardous only in bulk NOTE 2
NOTE 1 - Marine pollutants which are not of an otherwise
dangerous nature are listed in Class 9.
NOTE 2 - The regulations for materials hazardous only in
bulk are not applicable to these materials when
they are carried in closed freight containers,
however, many precautions may have to be