ncoterms and Insurances

May, 2022

Incoterms and Insurances for Reading Projects

The selection of the correct incoterms and insurance is one of the keys to a successful international book procurement, as it clarifies the financial risks and responsibilities of the contractual parties.

Christophe Barth, BlueTree Group’s Managing Director and consultant for Read@Home, wrote a guide on incoterms and insurances together with and for the World Bank Read@Home team. This guide will be used during reading projects, as incoterms are used for every procurement to create clarity on the carriage obligations, define the allocation of delivery costs between seller and buyer and to determine when the risks of loss and damage are transferred from Seller to Buyer.

Incoterms are global rules, providing clarity and predictability to business around the world with the delivery of goods.

The first step before issuing the bidding document is determining which mode of transport is the most suitable for delivering the books to the expected destination. The three main modes of transport are air, which is the most expensive option and only recommended when the quantities are minimal, sea, this mode of transportation is suitable when the book shipment weighs over 1,000 kg and is a more economical option compared to air. The last transportation mode is road, which is the best transportation model for local and regional printing and delivery.

Incoterms Reading Projects

There are eleven Incoterms, of which four are only applicable for sea freight, and the other seven can also be used for air and road transportation. There are seven incoterms that are commonly used for the delivery of teaching and learning materials: EXW, FOB, CIF, CIP, DPA, DPU and DDP. These seven incoterms differ in cost allocation, responsibilities and tasks performed by each party, the transfer of risks of loss and or damage from the seller to the buy takes place and the insurances required.

DPU is recommended for international book procurement, as it ensures that the seller is responsible for the delivery of books from the printing warehouse to the final destination.

In the guide a detailed description is given on how to select the best incoterm and insurance for your reading project.

Download full guide

Incoterms

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