Question: In 20+ years of using Incoterms, including attending a Frank Reynolds training once-upon-a-time and walking away confident that I was/we were using as they were intended, this last year has given me more than I’d like to think about. Transfer of risk and transfer of title are different from one another with the transfer […]
We have an export scenario from Spain to Chile in which the vendor requested the purchase be made under EXW INCOTERMS. We are handling and paying for the transportation and logistics and choosing the Spanish freight forwarder. We advised our internal procurement and sourcing teams as well as the Spanish vendor that we need to […]
QUESTION: Who is responsible if there is a mishap during transport when transfer of risk indicates the seller, but insurance is “negotiable”, and we have insurance? Case in point: We buy from a foreign seller with terms DAP buyer’s ( our) warehouse. According to DAP, insurance is negotiable. So normally if something occurs, seller is […]
QUESTION: Incoterm ICC Book conflicts with published Incoterms online. Order CIP to inland destination city of TUMELTSHAM. Demurrage charged. Unknown reason. Could be customer appointment. Who pays demurrage? ICC book shows Buyer. Customer protesting. **************** Answers: CIP is one of the Incoterms where the responsibility for risk and responsibility for costs transfer at different points in […]
QUESTION: I have a scenario that goes like this: The buyer wants the seller to own the goods until it hits the buyers warehouse in the US. The buyer wants to handle the shipping, import clearance and transportation delivery. The buyer wants the seller to take out insurance on the goods in transit as they […]
QUESTION: If a customer initially places an order under FCA (Collect) terms but then circumstances dictate a change to arrangements and the seller ends up contracting the carriage and agreeing to subsequently bill the seller for freight, does this change the terms? My understanding is that the term is based on whoever makes the contract […]
QUESTION: Asking for a friend… We see purchase orders, invoices, and even agreements where the incoterm stated does not align with the transfer of risk. Many of these agreements are intended with the shipper to deliver to the buyer’s final warehouse location by arranging door to door transportation, but risk to transfer outside the importing […]
QUESTION: Can the membership advise who should be listed as the USPPI in the following scenario? US company A sells goods to US company B basis FOB Incoterms®; company A loads the goods onto a vessel at a US export port. Company B arranges the vessel freight for onward movement to foreign destination for further […]
QUESTION: Recommendation for Incoterms for DELIVERY at the border? Intent is for a foreign entity to not own goods in the US, MX, or CA due to tax consequences. Seller A in Foreign Country A buys goods from Foreign Country B and manufactured by MX supplier B. B is non-related. A sells to related parties […]
QUESTION: What incoterm does the membership recommend or works best for US- domestic transactions for freight collect/seller door pickup or freight prepaid/ship to buyer’s address? I’m seeing a lot of contracts written for “US” and its territories as DDP or DAP or EXW. If freight collect, why EXW versus FCA? EXW means the buyer’s carrier […]
QUESTION: Here’s a question for our Incoterms experts. We had a shipment from the US to MX, and the Incoterm was DAP-customer’s door. Under DAP terms, the buyer is responsible for the customs clearance. However, the buyer’s broker took a very long time to perform the clearance, racking up high demurrage costs. Who is responsible […]
QUESTION: Where does the responsibility for INCOTERM Training fall in most companies – logistics, procurement, sourcing, legal or trade compliance? I assume procurement/sourcing because they are the dept that negotiates the terms of sale, pricing etc. I could see logistics but the logistics team really just follows the INCOTERM language in the agreement when it […]
