We are located in the U.S. and we have a newly established subsidiary in Singapore. We are assisting in the contract preparations for a new deal in Singapore. In this situation, some product to fulfill the order will be sourced in Singapore and some will be sourced from the U.S. Our subsidiary in Singapore will […]
Scenario: Terms of Sale: FOB origin port Terms of Payment: Open Account, 15 days after receipt of FCR. Seller delivers an LCL shipment to consolidator, pays all origin fees and receives FCR. While shipment is on the water, customer files bankruptcy and seller can’t get payment, however the entire shipment is in the control of […]
Recently our tax director received direction from an attorney that our company should not ship goods DDP to countries where we do not have a presence. If we should goods DDP, it creates additional risk to our company and may require that we have a “permanent establishment” at the destination country. There is some decreased […]
Hello. Our Agricultural Division imports Bulk Organic Millrun (Animal Feed) from Canada into the USA. The terms of sale listed on the mill invoice state FOB Plant (it should say FCA plant). However, the sales person I work with says he’s actually buying the product “Cleared Border” which reflects more of a delivery duty situation. […]
If you purchase items from your vendors in a foreign country, with the terms EXWORKS, how can you avoid becoming the legal “exporter of record” out of that country since you own the goods at the vendor’s dock door? Does it differ country to country?
“Our Company” has been struggling with the following real business transaction. Can someone provide a referral or other substantive illustrations of the risks involved in conducting the following international transactions? “Our Company” manufactures products in another country – in this case the product is designed only to work with the customer’s product – “The Buyer” […]
The majority of our international sales are on EXW or FCA basis. With these terms, we have no idea if the customers are actually taking the product out of the US since many of these customers claim to consolidate goods from several vendors and re-sell the goods to the international market (therefore we are not […]
We are exploring a Customs and Tax solution for our sales from China whereby we would have intercompany sales under the Term “FOB Vessel 12 miles off the coast of China”. Twelve miles off of China is considered outside China therefore a transfer of risk and ownership occurs outside of the China jurisdiction. My question […]
On “Free House Delivery” shipments (origin pays all charges): From a compliance perspective, how do other companies handle the classification and Customs clearance on: 1. Under $200 shipments that will be Sectioned 2. Between $200 and under $2000 that will be an Informal Entry 3. Over $2000 that will be a Formal Entry. 1. Currently […]
Comments about Inco Terms
Our vendors from India ship samples via air freight and show the Incoterms on the invoice as C&F but don’t include the freight in the invoice. They say they can’t use FCA on the invoices because of regulations from Indian Customs and they are required to show C&F. Does anyone else have experience with this?
We have several customers in Venezuela and they are insisting we quote on a CIF, (named port in Venezuela) basis. The catch is they want to use their own Freight Forwarder and they will inform us of the main carriage costs and insurance costs at the time of shipment. We are supposed to add this […]
