Genesis Incoterms Definitions & ICUMSA (International Commission for Uniform Methods of Sugar Analysis)
INCOTERMS: What They Mean

EXW - Ex Works
A delivery term where the Seller's only responsibility is to make goods available at his own premises. He has no responsibility for loading the goods. The Buyer bears the full cost and risk in transporting the goods from there to the final destination.

FAS - Free Alongside Ship
The Seller's obligations are filled as soon as the goods have been placed alongside the ship on the quay. The Buyer bears all costs and risks from then on.

FCA - Free Carrier (Named Point)
The Seller's obligation is met when the goods are transferred into the custody of the Carrier, at the Named Point. The risk transfers from Seller to Buyer at this point.
"CARRIER" is defined as "any person by whom or in whose name a contract of carriage by road, rail air sea or a combination of modes has been made"

FOB - Free On Board
The goods are put on board the ship by the seller at the Port of shipment named in the contract. The risk transfers to the Buyer as the goods pass over the ship's rail at the Port of loading.

CFR - Cost & Freight
The Seller pays the cost & freight of the goods to the named Port of destination. The risks are the Buyer's responsibility from when the goods pass over the ship's rail at the Port of loading.

CIF - Cost Insurance & Freight
Similar to CFR but here it is the Seller's duty to arrange all the insurance on behalf of the Buyer and pay the premium.

CIP - Carriage & Insurance Paid To (Named Destination)
The Seller now has to obtain Insurance to cover all risk to the Named Destination.

APT - Carriage Paid To
The Seller pays the freight for the carriage of the goods to the named destination. The risk transfers to the Buyer when the goods are in the custody of the first carrier.

DAB - Delivery At Frontier (To Named Place)
The Seller's obligations end when the goods have arrived at the Frontier but before entering the Customs process at the Country named in the contract.

ADP - Delivered Duty Paid
The most obligation to the Seller, who is required to pay all charges involved in delivering the goods to the Buyer.

DD. - Delivered Duty Unpaid
The Seller pays all costs involved in delivering the goods to the Buyer, with the exception of import duty, taxes and any other official charges levied at importation.

DES - Delivered Ex Ship
The Seller's responsibility for all charges to deliver the goods to the Port of destination named in the contract. The risk transfers to the Buyer on board ship.

DE - Delivered Ex Quay (Duty Paid)
The Seller makes the goods available to the Buyer on the quay at the port of destination named in the contract the risk transfers to the Buyer then.

(Duty On Buyers Account)
In this variation the liability to clear the goods for import are met by the Buyer.
"It is recommended that the full description is used to avoid misunderstandings. Do not rely on "Ex Quay" on its own".

ICUMSA EXPLAINED ?
An excerpt from a Newsgroup posting

"What is the meaning of ICUMSA and to what does it relate?" In order to attempt to help, let me quote the following from the ICUMSA Handbook:

"ICUMSA (International Commission for Uniform Methods of Sugar Analysis) is a world-wide body which brings together the activities of the National Committees for Sugar Analysis in more than thirty member countries. Work is carried out under various Subject headings, each headed by a Referee.

Methods are recommended for tentative approval by ICUMSA in the first instance. Upon meeting all of the Commission's requirements, methods are accorded official status. Methods which are demonstrably useful and have found an established application, or which do not lend themselves to collaborative testing are given an Accepted status"

An ICUMSA rating is an international unit for expressing the purity of the sugar in solution, and is directly related to the colour of the sugar. Be aware that there are different types of ICUMSA units. For Brazilian sugar, the lower the ICUMSA figure the whiter the sugar. However, this is not the case in the E.U. for some unknown reason, which has been the subject of much discussion.
SGS of Sao Paulo has published specifications for ICUMSA numbers for E.U. product which run contrary to the Brazilian specifications; for example, in Brazil SGS has an ICUMSA rating of 45 rbu for refined, indicating the highest quality, with other grades of lower quality (such as Special Extra Crystal) having a higher ICUMSA of 150 and so forth. This rating method is confirmed by the Institute of Sugar and Alcohol in Brazil.

However, SGS of Sao Paulo, in the same memo, lists ICUMSA 46 for the highest EU grade and ICUMSA 42 for E.U. raws, which is opposite to Brazil. SGS itself in either Brazil or Switzerland is not much help in this area, even although they have published the memo listing specifications and are supposed to be the authority.

When one speaks to ICUMSA directly, they refer to a third method which is totally different. How does one know what one is buying?

The only sure method is to be first totally versed in sugar as a starting point and understanding these differences. Next, although many brokers use the term 'rbu' with reference to ICUMSA for Brazilian sugar, few understand its meaning. RBU, as used in this sense, means "Reference Base Units". But to what it is referenced is the key. All major buyers such as Coca Cola etc. have their own reference for this purpose. If you do not have a reference, or are not acceptable to the reference supplied by the refinery or SGS, then you would request sugar ICUMSA to be expressed in TU or ICUMSA Units. Which brings one to the methods used by the British Sugar Corporation - are you confused yet?

The TU is heavily dependent upon "ash points", which are defined as "Conductivity ash, % , expressed to three decimal places" (British Sugar Corp., Central Laboratory, ICUMSA Headquarters). Further used to weight the TU is "reflectance Grade Colour" and "Solution Colour" or "Filtered Colour" as it is referred to, which have formulas for determination equally confusing as the one for "Ash Points". Thus, as you see, this is not easily understood by the novice.

The buyer is best protected by having an understanding of the method used by the provider to obtain the proper product complying to the proper specification. Country of Origin specifications usually rule. These specifications are then detailed in the contract.

Traders should note that the term "INCUMSA" with an "N" is not a valid sugar trade term. (Also, it is interesting to see offers which include the words "Grade A", which of course no sugar refinery or seller uses!)

a) I"N"CUMSA 45 rbu, followed on the next line by b) "COLOR: Sparkling White, etc.". Offers which we receive in this format go directly to File 13. I hope this helps. We have to stay in contact with SGS, BSC etc. in order to keep up with all that is required"

Genesis Sugar INCO Terms

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