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Subject: Re: [ubl] Incoterms (was: Re: [ubl] Minutes of Pacific UBL TC call 5|6 May 2008)


Nice to hear this !

> [roberto@javest.com:]
>
> | is the following UN/ECE recommendation allowing us to include the
> | Incoterms 2000 code list into UBL 2.1 ?
> |
> | UNE/CE Rec 05
> | http://www.unece.org/cefact/recommendations/rec05/rec05_ecetrd259.pdf
>
> Based on two hours of research, I now think that Roberto is right
> in saying that we can include the Incoterms code list.  We just
> need to be clear on what we mean by that.
>

Of course we need to avoid including into the genericode list the full
descriptions provided "at payment" by ICC (International Chambre of
Commerce).  We just need a code and a description, possibly a localization
of the description...as it is available in most countries.

> I see four things at issue here: the Incoterms themselves; the
> three-letter abbreviations of the Incoterms; the composite you get
> when an Incoterm abbreviation is followed by the name of a place,
> port, or destination and then the tag "Incoterms 2000"; and the
> Preambles that define in detail the legal implications of each
> Incoterm.

The composite is the way we should use it on a real use case, as the
Incoterm need to be completed by the location.
However the Incoterm code is self explanatory describing the distribution
of costs and responsabilities between buyer/seller.
We do not need an enumeration of all combinations between Incoterms and
Locode.  UN/Locode * Incoterm is a crazy number and not useful at all.

>
> Example Incoterm:
>
>    FREE ON BOARD
>
> Example abbreviation:
>
>    FOB
>
> Example composite:
>
>    FOB Liverpool Incoterms 2000

I think noone get offended if we use Incoterm and Locode into different
UBL BIEs.
The composite example (and maybe constraint) is just for the printed form
not the electronic document.

>
> Example Preamble:
>
>    "Free on Board" means that the seller delivers when the goods
>    pass the ship's rail at the named port of shipment. This means
>    that the buyer has to bear all costs and risks of loss of or
>    damage to the goods from that point. The FOB term requires the
>    seller to clear the goods for export. [etc.]
>
> The Incoterms site confuses these different things when it says,
> for example, that "Incoterms need revising periodically."  What it
> means is that the Preambles need revising periodically.  As far as
> I can tell, the thirteen Incoterms and their three-letter
> abbreviations have not changed for over half a century -- probably
> longer.

The revision can be just on the meaning of a given Incoterm (g.e field of
application) and this "could" change descriptions and/or the full
Incoterms 2000 documentation available at payment.
But you are right the code has never changed.

>
> The answer to the question, "Can we include an Incoterms code list
> in UBL?" depends on what we mean by "code list" and whether we
> mean legal ability or mechanical ability.

I sent a genericode draft to Ken with 3 columns: code, description and
group (this is just the 1st char of the code)

>
> If by "Incoterms code list" we mean a genericode version of the
> following:
>
>    CFR / COST AND FREIGHT / COUT ET FRET
>    CIF / COST, INSURANCE AND FREIGHT / COUT, ASSURANCE ET FRET
>    CIP / CARRIAGE AND INSURANCE PAID TO / PORT PAYE, ASSURANCE COMPRISE,
> JUSQU'A
>    CPT / CARRIAGE PAID TO / PORT PAYE JUSQU'A
>    DAF / DELIVERED AT FRONTIER / RENDU FRONTIERE
>    DDP / DELIVERED DUTY PAID / RENDU DROITS ACQUITTES
>    DDU / DELIVERED DUTY UNPAID / RENDU DROITS NON ACQUITTES
>    DEQ / DELIVERED EX QUAY / RENDU A QUAI
>    DES / DELIVERED EX SHIP / RENDU EX SHIP
>    EXW / EX WORKS / A L'USINE
>    FAS / FREE ALONG SHIP / FRANCO LE LONG DU NAVIRE
>    FCA / FREE CARRIER / FRANCO TRANSPORTEUR
>    FOB / FREE ON BOARD / FRANCO BORD
>
> then I believe the answer is yes, we can include it in UBL,
> because this list is taken (by me) from the table printed in UNECE
> Recommendation No. 5, "ABBREVIATIONS OF INCOTERMS: Alphabetic Code
> for Incoterms 2000" (ECE/TRADE/259, Geneva, May 2000).  I note in
> passing that the table in ECE/TRADE/259 is identical to that given
> in ECE/TRADE/202 (Geneva, January 1996); the latter also provides
> the following handy alternative text:
>
>    EXW - EX WORKS
>    FCA - FREE CARRIER
>    FAS - FREE ALONGSIDE SHIP
>    FOB - FREE ON BOARD
>    CFR - COST AND FREIGHT
>    CIF - COST, INSURANCE AND FREIGHT
>    CPT - CARRIAGE PAID TO (named place)
>    CIP - CARRIAGE AND INSURANCE PAID TO (named place)
>    DAF - DELIVERED AT FRONTIER
>    DES - DELIVERED EX SHIP
>    DEQ - DELIVERED EX QUAI
>    DDU - DELIVERED DUTY UNPAID
>    DDP - DELIVERED DUTY PAID
>
> If, on the other hand, we mean by "Incoterms code list" a
> genericode version of all possible composites (abbreviations x
> places + "Incoterms 2000"), then I think the answer is yes, we
> legally can, but do we really want to?  It seems to me that the
> resulting code list would be about 13 times as large as the
> portcode list, which already takes up about 47 MB of disk space.

of course noone need it

>
> If we've modeled this in a way that requires the code element to
> contain an entire composite, then it looks like we've got a
> problem, but if so, it's a mechanical one, not a legal one.  From
> Roberto's note, however, it seems that we've divided this
> information between cac:DeliveryTerms/cbc:ID (specific examples:
> CIF, FOB, EXW) and cac:DeliveryTerms/cac:DeliveryLocation/cbc:ID,
> so unless I'm missing something, we're fine with this.

yes this is corre t for an electronic document (see upper explanation for
printed format)

> We just
> need to add a gc version of the thirteen-item list above to the
> set of code lists in 2.1.
>
> I don't have time today to look into Roberto's second question
> regarding commodity codes, but I'll post something when I get the
> chance.
>
> Jon

Thanks Jon !

This will make UBL even better !

>
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-- 
* UBL Italian Localization SubCommittee (ITLSC), co-Chair
* UBL Online Community editorial board member (ubl.xml.org)
* Italian UBL Advisor
* OASIS NEWS italian translator

  Roberto Cisternino

  mobile: +39 328 2148123
  skype:  roberto.cisternino.ubl-itlsc

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